Taking a First Step IS Hard!

Taking a first step is hard. No matter what you are attempting: Learning to ride a bike; Learning to swim; Learning to drive a car; Learning a foreign language. Even setting up an extensive vacation can be a challenge with hotel reservations, airline tickets, passports, car rentals etc. A while back, I had a REALTOR® friend ask me how to blog. I gave her quick rundown on how to get going fast, but her response gave me pause. Where can I take a class? Is there  a book? Last I heard, she was heading to the library and months later, still no blog.  

The First Step IS Hard--But doesn't have to be...

First time home buyers often feel this way too and it’s usually because they don’t know where to start. Many folks have only one experience with buying a big ticket item…a new car. And we all can remember how much “FUN” that experience was!  Buying a home should be easier!  Because when you purchase a house you have your own REALTOR® in your corner working for YOU! That used car salesman was working for his manager in the back office; the one who had to approve your offer. On a home purchase, I am with my client negotiating the counter offer.  What a vastly different experience than buying a car and the salesman leaves you alone in a cubicle with a cold cup of coffee waiting for an answer. 

First time home buyers who want to learn more about the process generally start by scouring the internet for answers. There is a load of information out there…but is it GOOD information? How does it relate to buying a Minnesota home? Will the programs outlined on the website visited work if you want to buy a home in Washington County, Anoka County or is it only for a specific area or state?
Often I am asked by friends and relatives where potential home buyers can take a class to learn more about buying a home. Most people need 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. First time home buyers do not need to sit in a class to learn to buy a house. There isn’t a class requirement to write a purchase agreement. If you want to learn the process, contact me. I can walk you through the process and put you on a fast track to purchasing your first home. This will enable you to take advantage of the extremely low interest rates that are available this fall too. 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 out of pocket cost to you!

Ready to take the FIRST Step? Request your**FREE** HOME BUYER SUCCESS PACKAGE. As soon as I receive your information, I email your guide to download.  Plus if you have any additional or immediate questions, feel free to call me.  I’m happy to help!

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  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 2015 www.terieckholm.com

Free Money? Not Really--The True Story of Seller Paid Closing Costs

It is a very exciting day! You've just met with your loan officer and are pre-approved for your first home loan. You are ready to start shopping! You are certain you have enough money in the bank for your down payment. After all, your loan officer said, the seller will pay your closing costs, so you're covered right? 

Well, not so fast! It's not like sellers are handing out free money. So what's real story?

When a home buyer writes up an offer for a home, they can ASK the seller to pay closing costs up to a certain percentage allowed by the loan program. But the seller does not have to agree. If they do agree, it is like asking the seller to reduce their price. 

For example, if a buyer writes an offer of $200,000 on a home listed for $200,000 and requests the seller contribute $5000 to their closing costs, it is not a full priced offer. The seller will only get $195,000 for the sale. 

This is very important for a first time home buyer to understand when negotiating a home purchase. Starter homes in the Minneapolis/St Paul area are being snapped up very quickly. Most homes listed under $200,000 will have multiple offers shortly after hitting the market. If in a multiple offer situation, you need to write an offer that is attractive to the seller. Sellers do not want to give away money to you or anyone else. However, sellers do pay reasonable closing costs for buyers all of the time. It is all part of the negotiations.

Need More Tips on How to Write an Offer on YOUR First Home? Let me help! 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 2015 www.terieckholm.com

Resolution for 2014--Buy a First Home! (And a Class to Help You too!)

Did you make a new year's resolution? 

Maybe it was to workout more, eat healthier, be happy or spend more time with friends and family. Or maybe you resolved that 2014 is going to be the year to buy YOUR first home. 

What a great decision! Owning a home is still the American Dream and with housing affordability in the Minneapolis/St Paul area, this can be a very realistic aspiration. Home ownership is not just for older, wealthy Americans. People of all ages can afford to be homeowners in the Midwest. In fact, many young people are buying homes in today's market.

In 2013, I sold several starter homes to people just a few years out of high school. The homes these clients purchased were in all cases, move in ready, solid houses in the north and/or east metro. It is not unusual to find a nice home in a price range that makes owning a home as affordable as rent if you know where and how to look for them.

Intrigued? Wondering what is the first step to buying your DREAM home?  

Find a REALTOR® you can trust! 

As an agent, I help my first time buyers through the entire home buying process from pre-approval until closing day. But, it would be hard to trust someone without having met in person.  Give me a call and we can set up a meeting. I am very easy to talk to so call me anytime.

 
Copyright 2014 www.terieckholm.com

Couch Ouch—Resist the Urge to Splurge!

Buying a first home is an exciting time. There are so many things that have to be arranged and purchased besides the home like home owners insurance, utilities, cable, internet, moving truck rentals and furniture. There is one common theme in all of these arrangements, money. Everything is going to cost something and quite possibly, require a look at your credit.

But this should be no big deal, right? You found the home, wrote the offer, it has been excepted  and were pre-approved for the purchase, so now you are good to go. You don’t have to worry about that silly credit score or credit ratio the loan officer had you so uptight about anymore, right? WRONG!

Many first time home buyers forget that as a stipulation for the loan, a credit report can be pulled right up to closing to make sure there are no new debts. This means,don’t open any new lines of credit or you could find yourself without a home.

Recently, a young client of mine had to sweat out the last few days before closing due to the purchase of a couch. He was excited about his first home and really didn’t have a couch to sit on….and there was a HUGE sale at a local furniture store. 

Had he used the credit card he already had in his wallet, there wouldn’t have been an issue. But the salesperson at the furniture store encouraged him to "get a better deal" with a new store card. But furniture salespeople do not know whether or not this great little card will affect your credit score...they just get a bonus every time someone signs up. That "deal" came with a new line of credit that could have cost my buyer the house. Fortunately, he didn’t have Cadillac tastes and his furniture purchase and the accompanying line of credit was somewhat reasonable. 

But the story didn't end there. Upon realizing his mistake of opening a card before his home closing,  my buyer tried to “fix” the situation by transferring the charge from the new furniture card to his existing credit card account. This actually makes things worse. FICO scores can be affected negatively when a credit card is used to pay off another card.

About a week before closing, I received a text from my client about this little “couch ouch”. He was completing the paperwork for final approval and there was “the” question, “Have you opened any new lines of credit?” He wanted to know how to answer it and told me about the new couch (and credit card that it came with). Now, he was wondering if he should borrow money from his parents to pay off the card or return the couch. What was going to fix the situation and still allow him to purchase the home?

 

Okay, I’m not a loan officer but Ido know there has to be a paper trail for any funds coming into accounts right before a closing too. They will pull the bank statement and every big deposit will need to be explained. Plus it will not negate the new line of credit. I told him, “Call your loan officer asap!”

The good news for my client was his mistake was small price-wise and didn’t prevent his home purchase. Had he obtained credit for new appliances, hardwood floors or a car, there might have been a different outcome. However, the situation did cause him some needless worry a few days before the closing. Sharing the story is a good lesson for others. Remember per-approval isn’t the same as final approval on a loan. Your credit and income will remain under the scrutiny of the underwriter until closing.

My mother always told me, there  is always another sale. So be patient and resist the urge to splurge on a new couch, carpeting or appliances before you sign the final papers on the purchase of your home.

IMPORTANT REMINDERS

• Don’t take out new lines of credit. If they ask for your social security number it will most likely cause a tick on your report.
• Be prepared to explain any large influx of cash into your bank account, if you receive a gift or unexpected payment of any kind.
• Don’t quit your job or reduce your hours. Your income will be verified right before the closing.
• When in doubt, call your loan officer. They would rather answer a call now than give you news later than you no longer qualify for the loan.
• There will ALWAYS be another sale. Try to shop after your closing not before! 

Copyright 2013 www.terieckholm.com

What Ebay can Teach a Home Buyer about Multiple Offers

I’ll have to admit, I can get a rush when buying things from an Ebay auction. After putting in a bid on something I cannot live without, it is exciting to watch the second count down to the end of the bidding. I don’t always win. In fact, it can be frustrating; I’ll throw in a good solid bid, only to be outbid in the final seconds. But I have watched and learned. In fact, I have now snatched an item or two from other buyers just a moment before the end of the auction too.

There are some important lessons that I have learned from online bidding that apply to a home buyer in a frenzied real estate market. 

As the real estate market has heated up a bit this spring in the Minneapolis/St Paul metro area, buyers are seeing many more multiple bids on homes. Home buyers don’t always have time to think and process whether a home is a good buy or not before someone snatches it up. This can lead to questionable decisions at the last second.

Lessons Learned from Ebay

1.    Know the Value Whether Ebay trinket or townhome in Hugo, you need to know the value of the item you are buying. Without research to know a good deal, there is a big risk of over spending on the item.

2.    Read the Fine Print Sometimes the information in the description, or in the case of a home the disclosures, can help decide how aggressive your offer should be. Recently, I had a buyer excited about a property but after reviewing the previously listing information which mentioned severe mold in the home (but was not in the current disclosure) my client decided to pass on the home all together. Don’t forego your due diligence or you could have regrets.

3.    Know Your Limit I have learned that in the last seconds of bidding, if I have not thought out what my absolute limit is on an item, I can risk overbidding and feeling ripped off. This also can happen in negotiating for a home. Some buyers just want to “win” the house but can feel buyer’s remorse as soon as the bidding war ends. It’s not a good feeling to overspend on a home. If you are financing the property, it will still have to appraise for the value. If it does not, you could lose the house if you do not have the funds to make up the difference. 

4.    It’s More Fun Solo As exciting as an auction is, it is much more fun when you are the only interested party. Sometimes when I really want something, I will just pay the “buy it now” price. With a home, it is easier if you can get your offer in before everyone else and avoid the multiple-offer situation all together. So as a home buyer, it is important to be working with a REALTOR® to be updated on homes that meet your criteria, non-contingent on selling your current home and pre-approved for a loan. This way you can get in first and write up your offer on the best homes as soon as they hit the market. It is good to be the only offer on the table.

Copyright 2013 www.terieckholm.com

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

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

REALTOR® Selection 101—How to Choose the BEST REALTOR® for YOU! (Part One of Two)

How does the average home buyer or seller find their REALTOR®? Did they meet a friendly person hosting an open house? Call their best friend's brother who just got licensed? Answer an ad on Craigslist? I don't know the percentages but I am certain that most home buyers don't spend any more time researching their real estate agent than they do their groceries. But a home is not an everyday purchase; it is too big of a decision to not have sound advice. So how does one select a good REALTOR® to work with?

The average American will buy or sell property only 2-3 times during their lifetime. It is imperative to have a logical process to select a real estate agent. Purchasing and selling a home for your family is a very emotional situation. If you chose an agent wisely, you will be confident that your REALTOR® is on your side through the entire purchase and/or sale even when your emotions are running high.

As a REALTOR® working in the Twin Cities north metro, I love assisting people to find the perfect home. Many of my clients come from the referrals of past clients but I also meet home buyers at open houses and through various marketing avenues. When I meet a potential client, I expect questions about myself and my business. I answer additional questions about living on acreage, wetlands and lakeshore. I field questions on properties in Anoka, Washington and Ramsey Counties. Sometime the questions are about specifics of homes the buyer is interested in and often the questions are about the real estate market in general. But unfortunately not all of these potential clients ask pertinent questions. Some are already be caught up in the emotional buying process of a major life change.

Here is a great step-by-step approach to selecting the perfect REALTOR® for you. Part one of this article outlines how you can prepare yourself to set up meetings with potential REALTORS®. Part two (which I will post tomorrow) will give you specific questions you can ask of potential agents so that you can make a good decision.

Step ONE
Ask YOURSELF these few questions


1. Who do you trust for advice?

Is it a parent or grandparent? Maybe a close friend or uncle? Or is it your sibling or boss? Think about the qualities that person possesses and why you look at them as an advisor. If your trusted advisor is your grandfather, you might prefer working with someone older. If you tend to bring your problems to your best friend, you might want a REALTOR® with similar characteristics to your friend.

2. How demanding are you?

If you are an impatient person who needs answers as soon as you think of a question, you will need a REALTOR® that is available to you. If you are more laid back, you might prefer a REALTOR® with a similar style.

3. Do you prefer to use email, text or the phone as your main source of information?

Some REALTORS® are very computer savvy and will answer an email within a few minutes. Some love to text with their clients to provide an immediate answer. Others answer emails once a week and don't even know how to send a text There are REALTORS® who return calls only one time a day or week. There are others that always answer their own phone and others that have an assistant to field calls and answer basic questions.

4. Are you into gadgets?

If you are listening to your Ipod while you surf the net on your wireless tablet, you might prefer working with an agent who presents your market analysis in a Powerpoint presentation or emails it to you in a pdf file. If you prefer a paper document to refer back to and make notes on, a REALTOR® with more a more traditional style might be what you need.

5. Do you have expensive tastes and exclusive brands or do you live more modestly?

If you like the finer things in life, you might have more in common with a REALTOR® who drives a BMW and signs contracts with a Mont Blanc pen. If you have a more relaxed style, a REALTOR® in a Ford or Toyota Sedan that uses personalized ballpoints might be more your style.

Step TWO
Research

Even if you have just made mental notes on your preferences as you read the above questions, you now have a good idea of what type of person you prefer working with. Armed with this information, it is time for the second step. RESEARCH Check out websites of potential agents BEFORE you meet them. Read their blogs and review their profiles to determine what their style is. If you cannot ascertain their style from their site, move to the next agent. There are hundreds of good agents out there. But if they cannot market themselves, how will they be able to market your home? Come up with a list of 4 or 5 potential agents and visit your state’s department of commerce website to check for violations on each potential agent’s record.

Now you are ready to interview potential agents. Get some great questions ready so that you can find the best REALTOR® for you. Having trouble coming up with great questions? REALTOR® Selection 101—How to Choose the BEST REALTOR® for YOU! (Part Two of Two) will provide you with some tools to help with the interview process.

Copyright 2011www.terieckholm.com

A REALTOR® Working Hard to always have that “Little Extra”

Today I was working on pulling a CMA or comparative market analysis for a potential client. When I do a CMA, I spend quite a bit of time selected comparables and figuring out the optimal initial starting price as this is a difficult real estate market. What I do not spend a lot of time with is the collateral information that I put in with every CMA. It is the extra information that tells the new client “how I work”. I spend much time with this information because frankly, the way I work hasn’t changed since I started and wrote up the information several years ago.

For some reason today, the information on the first page just caught my eye. I am not changing a word but I do want to share what my business philosophy is. It is just one quote and 6 sentences. But this short statement gives insight into who I am and how I work.

“The difference between ordinary and extraordinary is that little extra.”
~Barbara Jordan

As your REALTOR®, it is my job to understand your needs and respond to them promptly, professionally and with integrity. It is my pledge to provide you with sound real estate advice, helping you understand the wisdom of the decisions you make.

By being your REALTOR®, our relationship is built on trust. Value and service will be provided before, during and after the transaction, so that your changing needs are always addressed and satisfied.

It is not only my business philosophy, but also a commitment to provide you with exemplary personalized service beyond your expectations. My practice is to listen, hear and truly understand your needs; a quality of business conduct that often seems to have been forgotten in today’s fast paced, highly automated society.

Whether you are considering buying your first home or selling the home you have lived in for years, it is important to realize that not every REALTOR® works in the same way. While other agents may pay lip service to statements such as these, making promises that cannot always be delivered, I take an honest approach and work with you to find the best way to get the job done. I take time to explain the real estate market and if things change, work with you to adapt to the situation in a way that will work best for you. This is truly how I work; anyone who knows me can tell you this is who I am. If you want to work with me to sell or buy a home, I will be your partner in the process from start to finish.

Copyright 2010 Teri Eckholm

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

In a recent episode of the Emmy award winning television show, Cash Cab, several people with stumped by the acronym, FSBO. This is a term often used in the real estate world to describe a person selling their home by owner (For Sale By Owner). As a REALTOR® I was a bit surprised but then I started to remember 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 homebuyers do not buy houses everyday.

There are so many terms that could possibly confuse a First Time Homebuyer that I thought a glossary of real estate terms might be helpful. So over the next few 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:
Encroachment—An encroachment is when something owned or constructed by a neighbor extends beyond the property line and onto another land owner’s property. Examples of common encroachments are fences, paths and branches of overgrown trees. Known encroachments must be disclosed by the seller on the Minnesota Seller’s Property Disclosure Statement (unless the buyer agrees in writing to an alternative inspection report or no disclosure).

Sometimes there is a reason for an encroachment. Trees often grow and will encroach into a neighbor’s yard. This usually isn’t a problem unless a branch was to break and cause damage in the neighboring yard.

There are times when a homeowner may not be aware of the encroachment because at the time of the construction the builder “guessed” at the property line or the survey was incorrect. It is common for an encroachment to be discovered when a new survey has been completed. A conflict can arise when it is discovered that a fence or shed has been constructed “on” or “near” what was thought to be the property line, but is actually over the line and encroaching on the neighbor’s property. The structure owner can then be required to move or remove the structure which can be very costly. Most communities will require a permit before construction and a setback to avoid these situations.

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

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

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:

Fiduciary—A relationship of trust created when a buyer or seller signs a contract with a REALTOR®. After a contract is signed, a real estate agent has several fiduciary duties that protect their client not just through the transaction but beyond it as well. This means as a first time buyer, once you sign a contract with an agent, that agent cannot tell others anything that is private about you or your situation to anyone. In Minnesota, these duties require your agent to be loyal, confidential, and obedient with your instructions. They are accountable to you and must disclose any information they learn that would benefit you in the purchase of a home. Throughout the transaction and afterward, they must use reasonable care to protect you and your interests.

It is important for a first time buyer to understand this term because every seller that is listed with a real estate broker has a contract in place. This means when a buyer calls the listing agent for information or stop by at an open house, the friendly REALTOR® asking you about your ability to buy a home is under contract with and WORKING for the SELLER. This agent has a fiduciary duty to disclose everything you have said to the seller of the home. But it is not a two way street. The friendly agent cannot tell you anything about the seller that the seller doesn’t want you to know. Because of their contract, the agent cannot say why the seller is moving or if a price reduction is in the works.

As a home buyer, it is essential to interview potential agents to assist with the home search as soon as possible in the process. When good match is found, sign a contract with a REALTOR® so that your interests and information are protected. Then REALTOR® can make calls to other agents on homes, set up private showings and assist you through the homebuying process. The agent will work for YOU! The contract does not have to be a long term commitment. I often sign up new clients for a couple of weeks and extend the contract once we have formed a stronger relationship. Rest assured that even if you decide to part ways with your agent, the fiduciary duty to keep your information private continues forever.

Copyright 2010 Teri Eckholm 

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

Last week a friend mentioned a new company had opened in the Minneapolis/St. Paul area but later realized it was just Fair Isaac had changed its name to FICO. 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. But I hadn't realized that few outside the real estate and mortgage industry have made the leap 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 few 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:

EQUITY—The amount of ownership one has in a property is the equity. This means if a home is appraised at $200,000 and the homeowner owes the bank $150,000, he would have $50,000 in equity.

An FHA buyer initially has very little equity because of the very low down payment required for the loan (usually 3.5%). Whereas a conventional buyer, who puts down 20% or more on the home, will have a greater percentage of equity.

It is important for a first time buyer to understand this term because it can be used in property descriptions. A home that is in a “negative equity" position is a short sale. This means the homeowner owes more to the bank than the home is worth in the current real estate market.
Other real estate ads will describe homes as an “equity builder”. This is where a buyer can build equity in the home faster by making improvements like finishing a basement so the home increases in value more quickly than if nothing is done on the home.

Another term used by REALTORS® in advertisements is “sweat equity”. This is similar to an equity builder but often describes a home that could need significant work to bring the property to its full value.



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

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

In a recent episode of the Emmy award winning television show, Cash Cab, several people with stumped by the acronym, FSBO. This is a often term often used in the real estate world to describe a person selling their home by owner (For Sale By Owner). As a REALTOR® I was a bit surprised that such a simple term I use everyday would be unknown to so many. 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 few 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:

Escrow This term can be confusing as it is used a few different ways. In some states, going into escrow is defined as the period of time after the purchase agreement is signed but prior to closing. In Minnesota we call that time period, pending, not escrow.

In Minnesota, the term escrow means funds held by a third party for a future payment. The most common time a first time buyer hear the term used is in regard to the required funds held in escrow by their mortgage company on a monthly basis to cover the taxes and property insurance for the home. This amount will be added to the monthly payment and the mortgage company will be then responsible for making the payments directly to the insurance company and the county for taxes. Putting funds into escrow is not required for all buyers. If a significant down payment is made at the time of purchase, a lender will not require funds to be placed in escrow for taxes and insurance. A buyer can then pay their insurance company and county directly.

There is another time when funds may be placed in escrow. There are some instances where essential repairs cannot be made prior to closing. In this instance, a mortgage company may allow funds to be place into the title company's escrow account on the date of closing and held there until the repairs are made. It is now rare that a mortgage company will allow this; usually only in the case of off season weather where it would be impossible to make the repair such as installation of a septic system or cement driveway in the winter.



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

First Time Homebuyer’s Real Estate Word for Today is Earnest Money

In a recent episode of the Emmy award winning television show, Cash Cab, several people with stumped by the acronym, FSBO. This is a often term often used in the real estate world to describe a person selling their home by owner (For Sale By Owner). As a REALTOR® I was a bit surprised that such a simple term I use everyday would be unknown to so many. 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 few 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:

Earnest money The funds that a buyer submits with their offer or purchase agreement to demonstrate to the seller their seriousness about buying the property. It should be an amount sufficient enough to indicate to the seller that the buyer will not walk away from the deal without good reason. It is not the same as a down payment. If your offer on the home is accepted, the earnest money check will be cashed and placed into a broker’s trust account. The funds will go toward the purchase price of the home.

Copyright 2010 terieckholm.com