Why List Your Home in February? Starter Homes are Going FAST!

It's not exactly springtime but in February when the weather forecast calls for 40's and rain rather than snow, Minnesotan's can't help but think spring! But we all know that another blast of winter could still be right around the corner. So who in their right mind would consider listing their Minneapolis/St Paul home now?

Smart sellers, that’s who.

There is a misconception out there; People think no one moves until April or even May in Minnesota. It’s can often be so darn cold it literally takes your breath away in February when the temps drop below zero. But Minnesotans don’t hibernate.  We go to work, the gym, restaurants and generally live our lives embracing the cold. Believe it or not, there are Minnesotans who choose to move in the winter. And with the continued very low interest rates, there are many home buyers looking to purchase a first home or move up to a bigger home, better school district or closer to their new job. But since Twin Cities sellers don’t buy into this concept, the housing inventory is very low at this time of year.

Most home sellers mistakenly think it is best to wait until that “hot spring market” when the weather is warm and grass is green.  They assume they will get a better price for their home if they wait until May or June to sell. In my experience, if a homeowner can get their house on the market early, they are more likely to get top dollar and maybe even multiple offers. I recommend to my clients to  try to get listed before the Parade of Homes starts at the end of February if at all possible.

My reasoning?  It comes down to basic supply and demand. There is a demand for affordable starter homes right now and very little housing supply in February and early March. If you can get your home listed soon, you might be hanging the sold sign sooner than expected (and for a good price too!)


Thinking of selling in 2016? Let me be your professional guide. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of Boardman Realty, a call or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.   

Copyright 2016 terieckholm.com

Moving, Millienials and Multiples—Buying is Not So Easy

Earlier this week I received a call from my electrician. I wasn’t surprised by the call since we have an open permit on work he completed a few weeks ago. But things have been crazy busy in real estate for me as well as construction for his business so it hasn’t been a priority.  Interestingly, the call had less to do about my electrical job and more to do with my real estate expertise.

 It turns out that his twenty four year old son is buying a first home and after being in the fourth multiple-offer situation in less than a month, my electrician was wondering if this is normal. His son’s price range was very low as is the case with many younger, millennial buyers and he was looking for something “move-in ready” too.  So yes, it is an extremely very common predicament in the greater Minneapolis/St Paul real estate market.

Right now there is kind of a perfect storm of demand for homes under $150,000—and in some neighborhoods of $200,000, $300,000 and more.

Housing Inventory is Down

• Rising rents—An average of 15% across the country between 2009 and 2014
• Low interest rates—Rates remain around 4%
• Construction investors—Planning to refurbish and flip
• Real estate investors—Planning to refurbish and rent

There has always been a demand for lower priced homes in the Twin Cities. Especially the ones that are move in ready.  These are the ones with “good bones” ; i.e. structurally sound but might need minor elbow grease and cosmetics. 

But as rents rise, so does interest in purchasing a home.  A recent article questioned whether millenials are too scared to own a home; I find in Minnesota, this is to the contrary. Many millenials are starting to ask the question, “Should I make that purchase after all? It will be cheaper than renting.”  I have spoken with several 20-somethings who are starting to think trading off the option of mobility for more cash in the wallet might be a good plan.  But, they are going to have to pack their patience and be ready to write an offer on the spot for the best houses. And, they will have to keep that signing pen at the ready too because they probably won’t get the first home they write on. The demand is HUGE for lower priced properties with “good bones”.

There are ways to write a standout offer in a stack of multiples and I share these tips with buyers I am representing. Contact me for more details.

Need to know more about buying or selling a Twin Cities home? Let me be your professional guide. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of Boardman Realty, a call or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2015 www.terieckholm.com

It’s Cold. It’s Snowy. Why Should I List My Minnesota Home Now?

 Tonight Twin Citians will face some of  the coldest weather in Minneapolis/St Paul so far in 2015. People from other parts of the country think we must be crazy to live where temperatures reach into the double digits below zero. Who in their right mind would contemplate listing their home for sale when it is so darn cold? 

Smart sellers, that’s who. 

There is a misconception out there; People think no one moves in January in Minnesota. It’s so darn cold we all must be literally frozen to the ground. But Minnesotans don’t hibernate.  We go to work, the gym, restaurants and generally live our lives embracing the cold. Believe it or not, there are Minnesotans who want to move in the winter. And with the very low interest rates, there are many homebuyers with good intentions and New Year’s resolutions to purchase a first home or move up to a bigger home, better school district or closer to their new job. But since sellers don’t always believe this, our housing inventory is very low at this time of year. 

Most home sellers mistakenly think it is best to wait until that “hot spring market” when the weather is warm and grass is green.  They assume they will get a better price for their home if they wait until May or June to sell. In my experience, if a homeowner can get their house on the market early, they are more likely to get top dollar and multiple offers. I recommend to my clients to  try to get listed before the Parade of Homes starts at the end of February if at all possible. 

My reasoning?  It comes down to basic supply and demand. There is a demand for affordable starter homes right now and very little housing supply in January and February. If you can get your home listed soon, you might be hanging the sold sign sooner than expected (and for a good price too!)

Thinking of selling in 2015? Let me be your professional guide. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of Boardman Realty, a call or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2015 www.terieckholm.com

Rent Versus Buy--A Tool to do the Math!

Buy or Rent? It is a fantastic question and one often asked by first time home buyers. It also creates a lot of discussion and sometimes debate. So why is this such a tough question to answer? Because there are many variables that will define the home purchase investment. The biggest is location which can often determine the price of a home. In some areas like in the Minneapolis/St. Paul metro where we are blessed with very affordable real estate, an entry level home can be purchased for roughly $150,000 to $200,000 but in other large metropolitan areas, starter homes can be double this amount. This makes it more attractive, and affordable to rent. 

But even in an area where homes are affordable, other several other factors do come into play. Taxes, insurance costs, maintenance, utilities, mortgage rates and how long you plan to stay in the home are a few of the things that need to be added into the rent versus buy equation.  This might seem to be an impossible calculation  but there is a great tool available online. Check out the NY Times Rent VS Buy Calculator. It is an interactive tool where you adjust the graphs to what is happening in your market, your life and your future. The tool calculates where the breakeven rent versus buy point would be for you. It is very helpful no matter where you live. 



Copyright 2014 www.terieckholm.com

Let Jack Frost Nip Your Nose—Winter IS a Great Time to BUY a Home!

Brutal subzero temperatures came early to Minnesota this year. This is the first time in nearly 20 years the Minneapolis/St Paul metro has had to deal with bone chilling weather in December. Add a fresh blanket of snow covering the landscape from North St. Paul to East Bethel and Lino Lakes to Scandia and most home buyers will jump in bed and cover up their heads until spring. 

But wait, winter is not the time to hide from the elements if you are pre-approved and ready to buy a home. Although making a move in a Minnesota winter’s snow and ice is not ideal, the timing could not be more perfect to buy a home and get a GREAT DEAL!

Here are the Top Ten Reasons to Buy a Home THIS Winter!
Reason 10—Holiday Décor. Touring homes during December really puts a home buyer into the holiday spirit. Many homeowners take this opportunity to deck the halls with hopes that there will be a purchase agreement in their Christmas stockings!

Reason 9—Check Window Efficiency. Frost on the window sill is not a holiday decoration! Subzero temperatures really put windows to the test. Some windows will fog between the glass panes, others will ice up on the interior and then there are those that stay crystal clear despite the cold outdoors. This energy efficiency test can only be done when the temperatures are extreme outside.

Reason 8—Less Competition. While many Minnesotans seeking the perfect gift at the Mall of America for gifts or attending “A Christmas Carol” at the Guthrie Theater, savvy home buyers are visiting homes with their REALTOR®!

Reason 7—Your REALTOR® has Time. Most real estate agents are not juggling several clients during the holiday season and can spend more time scouring the MLS to find the perfect home for the ones that want to be in a new home in January.

Reason 6—Assess the Community. Home buyers touring houses in the winter will get a good idea of how well various communities maintain roads and keep the streets free from ice and snow.

Reason 5—Check the Heating System. Whether the home is heated with a forced air furnace or a hot water boiler, checking out the heating system in the summer is hard to do. With our current subzero temps, a furnace problem would be very obvious!

Reason 4—Icicles. Snow on a roof can create icicles that might appear festive but also are an indicator of improper attic insulation. A home with significant ice dams might require additional maintenance and/or repairs.

Reason 3—Affordable Interest Rates. Rates continue to be very affordable but as the market heats up in the spring, rates could go higher too.

Reason 2—Significant Inventory Though the number of homes coming on the market is not as high as in the spring, the market is pretty balanced and new homes continue to hit the market every day. Whether you are looking for a starter town home, a single family home, a private country estate, a McMansion or a lakeshore paradise, there is a good selection of properties for a buyer to select from. 

And, drumroll please, The Number 1 Reason for Buying in the Winter—Motivated Sellers. Homes that stay on the market in December and January in Minnesota are homes that need to be SOLD! If sellers are motivated enough to suffer through a Christmas Eve showing, they probably are willing to negotiate on the price as well!

Copyright 2013 www.terieckholm.com

The News is IN! Homebuyers Wanting a Good Deal Need to Move Now!

Just two weeks into 2013 and you’re thinking this is the year to make that move. The Minneapolis St Paul real estate market is on the move again so it you are planning to get that “bargain of the century”. Well, maybe you should have bought last year. Check out the recent Pioneer Press article, which outlines the Twin Cities year to year sales statistics. Prices are on the rise. But there are still deals out there for buyers, even if you do not want a foreclosure or short sale.

Chart from 1/11/13 Pioneer Press article by John Welbes

Traditional sellers are getting houses on the market early this year. What is a traditional seller? Those are the people who own a house and have enough equity to sell it without having a bank involved. Many traditional sellers have been hiding in the woodwork so to speak for the past few years when prices were so unbelievably low. Now that they are on the rise again, they are ready. Homeowners have spent the past few years updating and repairing their properties so they would shine in a changed market. When a traditional seller gets a showing, the home is a joy to enter with a shoveled walk, warm temperature in the home and sometimes a cookie on the counter. When a traditional seller gets an offer, they respond quickly. It’s a joy to work with a traditional seller when buying a home.

So what should a potential home buyer do if they want to make a move in 2013?

• Get PREAPPROVED. Those updated cozy homes offered by traditional sellers are getting multiple offers. Sellers want to know that you can buy the home when they receive the offer. Having a preapproval from a professional, educated loan officer means you will not miss the change to put in an offer on your dream home. Even if you tried to get approved before but were denied, it could be worth talking to a loan officer again. Mortgage preapprovals are up 11% …And the best news, rates are still at all time lows! (If you are not sure where to get pre-approved, call or email me as I have some great contacts!)
• Work with a REALTOR® It is not the time to run around willy-nilly calling every agent that has a home listed to see the property thinking you could save money. While you are trying to connect with the agent of the perfect home that just listed, another REALTOR® could be showing the home to a preapproved buyer who could write an offer that day. Having your own agent, doesn’t cost anything in most cases but can get you into any home on the MLS that you want to see. Plus you can build up a rapport so when it comes time to write your offer, you know your agent is on your side.

What should a potential home seller do if they take advantage of this 2013 momentum?

• LIST NOW! Don’t wait until spring. You will get the best price for your home the earlier you list it. There is less competition now but there are many, many homebuyers in the market. Take advantage of this opportunity!

 

Copyright 2013 www.terieckholm.com

It’s Not Too Late! Make a Real Estate Resolution for 2013

As 2012 came to a close the media was continuing to exalt the good news of a strengthening real estate market in the Minneapolis St Paul area. Home sellers that have their houses priced right are seeing multiple offers again. Home buyers  hoping to take advantage of the extremely low interest rates are starting to struggle to find the perfect new home. Many were confused because the internet sites are full of affordable listings but time and time again when their agent checked availability of the “PERFECT” home, it was “under contract waiting for third party approval”. Yes there are still short sales on the MLS, along with foreclosures…but the pricing isn’t as low as a few months ago. Town homes, single family, split levels, ramblers, two stories, remodels, foreclosures, short sales and new construction are now starting to slowly rise in cost across the Twin Cities.

As a REALTOR® serving White Bear Lake, Lino Lakes, Blaine, Ham Lake and communities in the Forest Lake School District, I keep a close eye on the Twin Cities real estate market. During the last few months of the year, I noticed bit of a change in the wind. Activity was starting to pick up. Traditional sellers were starting to see their homes being snatched up shortly after listing. Buyers found themselves in multiple offer situations and had to learn that “highest and best” could mean 10-20% above the price listed in the MLS. Negotiations were made and offers accepted. The Minneapolis St Paul metro area’s  real estate market took another positive step toward becoming balanced at the end of 2012.

So what does that mean for those considering purchasing a home or selling their property in 2013? From Ham Lake to Forest Lake and East Bethel to East St Paul we should strive to keep building a strong foundation to our real estate market. Keeping the property value base strong is essential to all Minnesotans. In 2013, we should all Resolve to be Real Estate Savvy!

Resolutions for Sellers

*Team up with a professional REALTOR®

*Price your home right from the start
*Make repairs before listing
*Declutter
*Make each showing count by staging

*Buyers are more educated so be willing to negotiate

Resolutions for Buyers

*Team up with a trusted REALTOR®

*Get Pre-approved and check in with your Loan Officer regularly

*Write realistic offers that encourage negotiation.

*Understand that a well-priced home will sell quickly, often with multiple offers

*Realize that a foreclosure and/or short sale property has many risks that will be assumed by the buyer. Inspections are essential.

Resolutions for Homeowners

*Even if 2013 won’t be the year for you to sell, there are things every homeowner should be doing to retain property value.
*Maintain the interior and exterior of your home by making repairs on a continual basis rather than deferring to time of sale.
*Stay current with your mortgage and discuss any financial problems with lender immediately.
*Be a good steward of your neighborhood.

Resolutions for Investors

*Team up with a professional REALTOR®
*If holding the property, offer a safe and maintained residence at a fair price to the renters.
*If flipping or repairing/reselling the property, be realistic with the numbers. Don’t do cheap repairs and expect big rewards. 2013 buyers are market wise!
*Be a good steward of your properties and the communities in which they are located.
*Maintain the properties to retain value for portfolio as well as the neighborhood.

If home buyers, home sellers, homeowners, investors and real estate professionals alike work together to maintain momentum we saw in the market at the end of 2012, the new year could bring continued recovery for the Minneapolis St Paul real estate market.

Copyright 2013 www.terieckholm.com