Twin Cities North and East Metro | Thinking About Buying? Know Your Credit Score

Buying a home in the Minneapolis St Paul area is much easier than in other areas of the country. Why? Affordability. I have had first time home buyers in the North and East Twin Cities Metro as young as 18 years old who made the leap into home ownership over the years. All of my young home buyers retained and improved their investments. But the first step in any real estate investment requires a hard look at numbers. 

Today I would like to discuss the topic: Thinking of Buying  a Home? Know Your Credit Score.

Knowing your credit score or getting a recent copy of your credit report is one of the first steps that you can take toward knowing how ready you are to start the home buying process.
Make sure all the information listed on your report is accurate and work to correct any mistakes. The higher your credit score, the more likely you will be to receive a better interest rate for your mortgage, which will translate into more ‘home for your money.’
Many potential buyers believe that they need a 750 FICO® Score or higher to be able to purchase a home. The truth is that according to Ellie Mae’s Origination Report, over 53% of loans were approved with a FICO® score under 750 last month!

Here are some tips for improving your credit score:

• Make payments, including rent, credit cards, and car loans, on time.
• Keep your spending to no more than 30% of your limit on credit cards.
• Pay down high-balance credit cards to lower balances, and consider balance transfers to free up credit.
• Check for errors on your credit report and work toward fixing them.
• Shop for mortgage rates within a 30-day period — too many spread-out inquiries can lower your score.
• Work with a credit counselor or a lender to improve your score.

Once you know your score, your next step will be finding a lender and getting pre-approved for a mortgage. Doing this will ensure that you know your budget before you start looking for your dream home.

  Source: KCM Teri Eckholm Blog

READY to Make YOUR Move? It IS essential to have a knowledgeable agent at your side. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of BOARDMAN Realty, a call at 651-336-7073 or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
 
Copyright 2017 terieckholm.com

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

What Does AGENCY mean to the First Time Homebuyer?

So you are planning to buy a home soon. Maybe you have even stopped in at an open house or two. If you did, the hosting REALTOR® may have started talking about buyer's agents and seller's agents and possibly even a dual agent. But what does agency really mean? And why should you as a Minnesota homebuyer care? 

In Minnesota, real estate brokers and salespersons are required to disclose the type of working relationship they have with the parties in a real estate transaction.  As a homebuyer, there are different types of relationships available to you.  It is important to understand these before you sign a contract or purchase agreement for a home.  These relationships are called  “agency” relationships and carry with them legal, fiduciary duties and responsibilities for the broker as well as for the buyer and seller. 

The 3 most common agency agreements are the buyer's agent, seller's agent and dual agent.

Buyer’s Agent

A Buyer’s Agent acts solely on behalf of the buyer and owes duties to the buyer including the utmost good faith, loyalty, and fidelity.  The agent will negotiate on behalf of, and act as an advocate for, the buyer.  The buyer is legally responsible for the actions of the agent when that agent is acting within the scope of the agency.  The agent must disclose to sellers all adverse material facts concerning the buyer’s financial ability to perform the terms of the transaction and whether the buyer intends to occupy the property.  A separate written buyers’ agreement or contract is required which sets forth the duties and obligations of the parties.

Seller’s Agent

A Seller’s Agent acts solely on behalf of the seller and owes duties to the seller which includes the utmost good faith, loyalty, and fidelity.  The agent will negotiate on behalf of, and act as an advocate for; the seller.  The seller is legally responsible for the actions of the agent when that agent is acting within the scope of the agency.  The agent must disclose to buyers all adverse material facts about the property that are known by the broker.  A separate written listing agreement or contract is required which sets forth the duties and obligations of the parties.

In both buyer and seller agency, the following fiduciary duties are owed to the client: 

FIDUCIARY DUTIES

Loyalty

Obedience

Disclosure

Confidentiality

Reasonable Care

Accounting

 DUAL Agent  

A dual agency is created when both the buyer and seller have signed representation agreements with the same broker. The parties may have two different salespersons or they may be the same person. All duties and obligations to the buyers and sellers remain the same in a dual agency.

Because it is impossible to disclose all information AND be confidential at the same time, dual agency must be disclosed and agreed to in writing.  All material facts regarding the property must be disclosed regardless of agency. 

Why is this so Important?

When you look for a home, every house listed on the MLS has some agreement between the seller and the listing broker. If a buyer does not sign a contract and attends an open house, the nice agent asking all the questions at the open house about your financial ability to purchase is under contract to share everything you say with their seller. 

But if a homebuyer signs a contract with a REALTOR® before viewing any homes, their private information stays private. AND the best part for MY buyers is that signing a contract does not cost anything. All fees are paid at the closing and the commission is paid for from the seller so there is NO OUT of POCKET cost to have a REALTOR® in your corner.

Copyright 2014 www.terieckholm.com

Real Estate Word of the Day: Assessed Value

First Time Homebuyer Real Estate Word is Assessed Value

So many real estate terms can be confusing to home buyers and sellers alike whether it is an acronym like FSBO or an often used word like equity or foreclosure. As a REALTOR® I am not surprised when that look of confusion comes over a buyer’s eyes when I mentioned escrow or earnest money. These terms sound so much alike when being bombarded with new terminology like, mortgage, deed, easement, appraisal, and association dues, etc. It is understandable that homebuyers that are more interested in room sizes and kitchen counters to be confused with the everyday real estate jargon like down payment or cash to close. This confusion is very understandable because for most people, buying a home is a once in a lifetime experience.

This REALTOR® jargon is so prevalent, I thought a First Time Homebuyer glossary of real estate terms might be helpful. From time to time I have been adding to this list of terms used often by REALTORS® in a series of posts. 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. I am continuing the series with Today’s Real Estate Term:

Assessed Value (or Tax Value) Every home has a value assigned to it by the county assessor which is the assessed value. This value is updated on regular basis (usually once a year) and it is used for determining your property tax. This value should not be confused with an appraised value (value determined by an appraiser) or market value (value determined when listed on the market), since it is often a year or two out of date. Usually the assessor will determine a separate value for the land and the structures. This value does not add for landscaping which would be included in a values determined by appraisers and homebuyers.

 
Copyright 2013 www.terieckholm.com

Real Estate Word of the Day: Equity

From time to time I will be working with  home buyers and be struck by the confusion in their 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. This confusion is a reminder that simple terms I use everyday as a REALTOR® might be unknown to others. It is totally understandable because most homebuyers do not buy houses everyday.
 
There are so many terms that could possibly confuse a first time home buyers and repeat home buyers alike, that I thought an online glossary of real estate terms might be helpful. From time to time, I have written about these essential terms. It is a series of posts for the first time home buyers where I explain some 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 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 2014 www.terieckholm.com
 

Real Estate Word of the Day: Easement

I was talking to an old friend recently who mentioned new company had moved into Minneapolis/St. Paul area named 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. So the "new" company was just  Fair Issac being renamed as it's acronym, FICO. But it was eyeopening that few outside the real estate and mortgage industry may have made this connection.

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 home buyers do not buy houses everyday.

There are so many terms that could possibly confuse a First Time Home buyer 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 Home Buyer Class and have a quick resource at your fingertips. Today’s Real Estate Term is:

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

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

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

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

Copyright 2013 www.terieckholm.com

Real Estate Word of the Day: Deeded Access

A typical person will buyer only buys a home once every five to eight years. Many will only buy one or two properties in a lifetime. First time buyers and repeat home buyer alike can forget some of the simple terms used in real estate on a daily basis. For some it can be hard to remember whether the earnest money or money escrowed becomes part of  the down payment  or not. Often buyers are easily confused by similar sounding terms like easement and encroachment as they both deal with property lines and usage but what do they really mean?

Whether you are a novice, first time buyer or someone who owned a home previously but hasn’t purchased a home for several years, sometimes a refresher on real estate terms can be very helpful. I often notice buyers (and sellers) with a glazed look on their face when certain terms come up so I thought an online real estate glossary would be a useful tool. The real estate term for today is:

Deeded Access Deeded access is access to the lakeshore as outlined in the deed for the property. As a Minnesota REALTOR® I deal with lots of lakeshore properties. Heck, it is the “Land of 10,000 Lakes” after all. Some properties are right on the shoreline and the riparian rights (right to use the lakeshore) is obviously the property owners. But sometimes a property within close proximity to a lake will allow homeowners to use the lake as well. These rights can include the ability to use a private beach, put in a dock, dock a boat or other various rights. Not all deeded access is created equal. To understand the riparian rights associated with the property, a buyer must inquire and read the specifics outlined in the deed.

Copyright 2013 www.terieckholm.com

Rethink the Bridal Registry! A Dream HOME Could Make the Happy Couple VERY Happy!

When I was married we didn't have a fun barcode readers to capture and share our favorite towels, toasters and china patterns but they seem to make life simple for today's bride and groom. But wouldn't it be awesome to point that thing beyond the department store wares and head out to the nearest neighborhood of cozy bungalows and tag something that a the happy couple also needs, their first home? Imagine engaged couples browsing the internet listings on realtor.com or dropping by an open house and using a scanner to click the QR-type code on their favorite new home so the front door key could be handed over as the bride is carried over the threshold. AWESOME idea, right?

It is an off-the-wall idea but couples getting married this year may have a tough time finding first time buyer financing. Zero down loans have all but disappeared from the landscape and first time buyers need cash in their pockets to put toward a new home. As mortgage programs continue to change and evolve, it is essential to save for that down payment. A forward thinking young couple might want to divert some of their wedding funds and gifts into an investment in a new home, in which they can begin their lives together.
 Buyers wanting to purchase this spring will NEED a down payment for a house. Not just a few bucks either. In most cases a buyer will require a minimum of 3-5% to put down. With an average Minnesota starter home in the $175,000 price range, today's brides and grooms will need to save at least $5,000-$10,000, plus closing costs.

All is not lost for first time buyers, but a little forward thinking is in order. There is a lot of money involved in most weddings; both on the party planning and the gift recipient side. A savvy bride and groom might be able to figure away to have the perfect wedding AND a dream home.

New Home Gift Registry Young couples getting married register for gifts to let their friends and family know exactly what they want and need. If you need a house, why not let your guests know? Maybe the insert in the wedding invitation should read:“The couple is registered for a small number of necessities at Target, JC Penneys and Macys. If you would prefer not to shop, they are also saving for a down payment for a new home and would a appreciate monetary gift toward their dream.”
I don’t know what Miss Manner’s would say about but I think a financial wiz like Suze Orman would applaud the idea.

Wedding Budget With the average dream wedding going for over $20,000, maybe a little arranging of the budget is in order. Those saved dollars from the dream wedding can go toward that dream home instead. Now, I am not suggesting "cheaping out" on anything or everything. But it would be prudent to take a look at where you can economize on your budget. Maybe you can go fore go the fancy invitations or select a less expensive dress. Is it possible the honeymoon trip to Hawaii would be a better choice for your fifth anniversary and a road trip to Duluth, MN to create newlywed memories along the north shore of Lake Superior could be considered instead? Whether on wedding details, reception or the honeymoon, if just 25% could be saved on the average wedding, approximately $5000 cash that could go toward your dream home.

So brides and grooms start thinking about your future lives together and create a plan for your dream home. Though those scanners will not work outside of the department stores, I do! As a professional REALTOR® , I have helped many young couples find the first home of their dreams. I know the north and east Twin Cities housing market and can help you spot a deal whether want a dream home in Maplewood, Forest Lake or Blaine. I will assist you in writing a fair offer and negotiate a deal so your dream can become a reality. And having your OWN agent doesn't cost you any additional fees--The seller pays my commission! Working with an agent to find your first home, takes the stress out of the home buying process so you can focus on making your wedding day special rather than moving in details too. 

Copyright 2013 www.terieckholm.com

Going, Going, Gone! Why Homebuyers Need to be Ready to Write an Offer

It seems a bit unbelievable to some homebuyers. After a few years of hearing about a real estate market where buyers were in the driver’s seat now buyers are hearing, "Sorry, that home is SOLD!"

That is the very market we are now in folks! There are still homes being listed every day. But with these phenomenally low interest rates (Did you ever think a 15 year mortgage would be UNDER 3%?!), there are many more homebuyers off of the fence and in the market. If you are a first time homebuyer and looking for a home in the $100K-150K range, you are not only battling against first time homebuyers but also investors to find a good deal. Investors have plans to fix up and resell or put a renter into the home. And since investors often pay with cash, there are no worries to the seller as to whether the home will appraise or the financing will fall through. It’s tough competition for an FHA first time buyer who wants the seller to pay closing costs. 

So what’s a homebuyer to do? 

Get organized. If you want to buy a home at a good price in this market, you need to have a plan.

Plan to Work with a REALTOR® This is not a market to go at it alone. Find a good, trusted professional who is willing to show homes as soon as they hit the market and sign a contract for buyer’s representation. In most cases, it will not cost you anything because the seller will pay the commission.

Plan to Get Pre-Approved for a Loan Without a pre-approval letter, you won’t be able to submit an offer. Most sellers won’t consider accepting a purchase agreement without a letter from a loan officer stating the buyer is qualified to purchase the home. Some bank owned properties only will accept specific types of financing so proactive buyers will be pre-approved for a loan.

Plan to Define Your Criteria Once pre-approved, you know what you can pay for a home so define all other aspects of your purchase including location, school district, number of bedrooms, bathrooms and garage stalls.

Plan to Get Set Up to Receive NEW Listings Call YOUR REALTOR® and ask to be set up to receive all new listings as soon as possible. This is one of the best perks of working with one agent, they know what you are looking for and will help you find it. I like to use a program called Listingbook  so my buyers can leave any property related questions for me to answer on their favorite homes. This is a great way to weed out short sale listings that already have offers too. I review favorites and if there are any short sales with an offer in to the bank but still listed as active on the MLS, we can note it and move on.

Plan to Be Ready to See Homes ASAP The good ones are going fast in this market. If a property meets your criteria, you will need to see the home as quickly as you can.

Plan to Make a Quick Decision Many homes are in multiple offers after a day or two on the market. When a serious homebuyer sees a home that they are interested in, they have to make a quick decision and write up the purchase agreement as soon as possible.

Prepare for Multiple Offers In the first time homebuyer price range, I have seen multiple offers on almost every home I have written a transaction on this summer. Many homes are listed at low prices to encourage more than one offer. If the home appears to be an excellent value, plan to write your “highest and best” offer on it!

Persistence Pays! This summer I had a young couple looking for a starter home who wrote SIX offers before finding their dream home. They were persistent and finally realized their dream. Another young family wrote four offers. In a lower price point, it may take a few offers to get a home, but the reward is worth the effort!

Copyright 2012 www.terieckholm.com

All the Single Ladies! SF Looking for Affordable Townhome in WBL or Hugo

Going solo on a home purchase for women is a trend in today’s real estate market. It’s not surprising to me. As a REALTOR® with over a decade of experience in the north and east Twin Cities metro, I know several self assured women who have leaped off of the home-buying fence and purchased a home on their own. And believe me, age does not matter. Women in their 20’s and on up into senior years buy homes without a male cosigner. In fact, the WSJ online reported that single women now outpace single men in home purchases.

What type of home is the best option for someone buying solo? The sky is the limit!! If my single gal friends and clients are any indication of what single buy, it really is as diverse as any other segment. I have one friend in her early fifties who started with a west metro condo in her late 20’s but traded it for a brand spanking new townhome in Roseville a few years later. She wanted more of a backyard for her pets but didn’t want the yardwork that came with owning a single family home.

Another female friend of mine wasn’t afraid of a little home maintenance and purchased her family home while in her mid-thirties. She loved the MacGroveland area of St. Paul where she grew up and wanted to keep the turn-of-the-century treasure in the family.

Even senior buyers don’t always shy away from maintenance, while many senior women will opt for a townhome or condo when downsizing, I know another tenacious gal who was 60 years young when she bought a 4BR two story in Maple Grove with a full basement workshop to do projects in.

Single Gals (and Guys) should listen up…Renting might not be the best financial option today for those who live in the north and east Minneapolis/St Paul metro. Homes in many communities are amazingly affordable….and you don’t have to settle for a rundown foreclosure either. There are new and existing townhomes and single family homes in all price ranges in communities like Blaine, Hugo, White Bear Lake, Oakdale, North St Paul and Shoreview. Combined with the unbelievably low interest rates that people are locking now (30 year loans at under 4% in some cases!), it is unfortunate if someone (man or woman) is too intimidated to go it alone.

Buying a home does not have to be intimidating. Finding a good REALTOR® who listens to what you want in a home and guides you through the process step-by-step is key. I have assisted many people—single men and women, couples and families—find their perfect place to call home. (Check out some of the testimonials I have received.)  I have outlined the home buying process in a simple, Homebuyer Success Guide and that I quickly email out to any potential Twin Cities homebuyer that asks for one. (you can request one using the link below). I also happily answer my cell phone when a new potential buyer calls with a question. We can organize a game plan to get you qualified and start your search for the best home options that fit your needs, wants and budget. Don’t let being single keep you out of the one of the best real estate buying opportunities in years.

 

Copyright 2012 www.terieckholm.com

Bridal Registry Out of the Box! Newlyweds Want Dream Home!

Why can't a bride and groom take that little bar code scanner from Target or Macy's and scan a photo of a new home instead? I know couples need the department store stuff like blenders, coffee makers and blankets but they will need a first home too!  

What if brides and grooms could  browse the internet listings on any real estate website or drop by a neighborhood open house and use a special "dream home scanner" to click on a favorite home. Then they could receive the keys to their dream home just in time to be carried over the threshold. THAT, my friends, would be a fairy tale ending or beginning; a really start to happily ever after.

It may sound off the wall but newlyweds are going to face a tougher time finding a loan without a down payment.  Zero down loans have all but disappeared from the landscape and first time buyers will need cash in their pockets to put toward a new home. As mortgage programs continue to change and evolve, it has become imperative to save for that down payment. Forward thinking young people might want to divert some of their wedding funds and gifts into an investment in real estate.

In this changed real estate market, new home buyers NEED a down payment for a house. Not just a few bucks either. In most cases a buyer will require a minimum of 3-5% to put down. Minnesota starter homes run about $150,000 in the north and east Twin Cities metro. So,  newlyweds today will need to save up a minimum of $5,000-$10,000, plus closing costs before making a first home purchase.

All is not lost for first time buyers, but a little forward thinking is in order. There is a lot of money involved in most weddings; both on the party planning and the gift recipient side. A savvy bride and groom might be able to devise a plan to have the perfect wedding AND a dream home.

New Home Gift Registry Young couples getting married register for gifts to let their friends and family know exactly what they want and need. If you need a house, why not let your guests know? How about adding a note to the invitation stating your gift preference?

“The couple is registered for a small number of necessities at Target and Macys. If you would prefer not to shop, they are also saving for a down payment for a new home and would a appreciate monetary gift toward their dream.”

I don’t know what Miss Manner’s would say about but I think a financial wiz like Suze Orman would applaud the idea.

Wedding Budget With the average wedding pushing $20,000, maybe a little rearranging of the budget could be a way to find some funds. Those saved dollars from the perfect wedding can go toward that dream home instead. Now, I am not suggesting going the bargain basement route on anything and everything, just economize where it makes sense. Maybe you can go opt for less fancy invitations or choose a less expensive dress. Maybe that cruise to the Caymans would be a better choice for a future anniversary and a honeymoon in Duluth, MN creating newlywed memories along the north shore of Lake Superior would be be a budget friendly change. Whether on wedding details, reception or the honeymoon, saving 25% of an average wedding bill would be $5000 cash toward a new home.

So young couples start planning your future with a plan for your dream home too! While the current technology does not allow a scanner to work outside of a department store, I do! Adjust the budget to come up with the down payment and I can assist you with finding your dream home.

As a professional REALTOR®, I have helped many young couples find their first home.. I know the north and east Twin Cities metro area and can help you spot a dream home deal whether you are looking in Lino Lakes, Blaine, Andover or anywhere in the Forest Lake school district. I can assist you in writing a fair offer and negotiate a deal so your dream can become a reality. And (more budget friendly advice here)....Having your OWN agent doesn't cost you any additional fees--The seller pays my commission! Working with an agent to find your first home, takes the stress out of the home buying process so you can focus on making your wedding day special rather than moving in details too. 

Copyright 2012 Teri Eckholm 

First Time Homebuyer’s Real Estate Word for Today is Truth-In-Housing

First Time Homebuyer Word Truth in Housing

In a past episode of Cash Cab, an Emmy award winning television game show, a taxi full of contestants with stumped by the acronym, FSBO. As a REALTOR® in the Minneapolis/St. Paul north and east metro, I was a bit surprised “For Sale By Owner” eluded them. That is until I remembered the times a glazed look came over my buyer’s eyes when I mentioned escrow and earnest money. These real estate terms are easily be confused with other real estate financial terms like down payment or cash to close. It became apparent to me that a buyer’s confusion is very understandable; after all homebuyers do not buy houses everyday.

I thought a glossary of real estate terms might be helpful to the First Time Homebuyer. Over the past year and throughout 2012, I will present and explain terms often used by REALTORS® in a series of posts for the first time homebuyer.. This way a first time homebuyer can skip buying that big “how to buy a house” book or attending a non-required First Time Homebuyer Class and have a quick resource at your fingertips. I am continuing the series with Today’s Real Estate Term:

Truth-In-Housing Inspection A truth-in-housing inspection is a pre-listing, point-of-sale inspection required by a local municipality. The inspector will perform an inspection of the home and note hazardous and sub-par features of the home. In Minnesota, there is no Truth-In-Housing inspection requirement to sell your home at the state or county level. There are however a number of communities in the Minneapolis/St. Paul metro require a pre-inspection report. These inspections have many names including: Truth-in-Sale of Housing Disclosure, Time-of Sale, Time-of-Sale Code Compliance, Dwelling Maintenance and Occupancy Code Compliance, Housing Code Compliance Inspection or Housing Maintenance Code Inspection. Some of these inspections are done by inspectors that are city employees while other communities have licensed private home inspectors to perform the inspection of the home. But in many cases, it will be the homeowner’s responsibility to select a private inspector to perform the inspection prior to listing the home for sale.

Note: There are a few counties that do have point of sale requirements for septic systems. Always check with your city and/or county regarding whether or not they have point-of sale or truth-in-housing inspection requirements as cities do update and change requirements from time to time.

The Twin Cities communities that currently require a home inspection are:Private Inspectors (Selected by Homeowner)

• Bloomington
• Hopkins
• Maplewood
• Minneapolis
• St. Paul
• South St. Paul

City Inspectors

• Brooklyn Park
• Crystal
• New Hope
• Osseo
• Richfield
• St. Louis Park

 Truth-in-Housing versus Buyer’s Home Inspection.

 First Time Buyers can and should have a potential home inspected prior to buying it. An offer or purchase agreement can be written with an inspection contingency, allowing the buyer time to hire and review the home with an inspector. This contingency can be written into the contract to purchase whether the city requires a truth-in-housing inspection or not.  It may seem a bit redundant to re-inspect a home that has a point of sale inspection. However, the benefits of walking through the home with an inspector as he points out specific concerns of the structure far out weigh the monetary cost for the first time homebuyer.

Copyright 2012 www.terieckholm.com

The JOY of being a REALTOR®~~Making Homebuyers Dreams Come True!

Late on a Saturday afternoon, I received a phone call. The caller said he and his fiance had just driven by a Forest Lake listing of mine and want to know if I could them the inside. "Are you working with an agent?" I inquired. "No", he said. So we arranged for a showing of the Washington County home the next evening.

The young man and his fiancée arrived with an entourage of parents and assorted other relatives. Being first time buyers, they wanted assistance and approval from people they trusted when they made a final decision on their first home. Looking over the property from top to bottom, they liked what they saw but needed time to think. I asked the question I always ask, "When you are shopping for a home, are you shopping for a REALTOR®?" The young man's dad answered, "They don't need an agent because they will get a better deal working directly with the listing agent." I explained why this wasn't true but could tell from the look on his face, Dad was not convinced.

I explained agency and asked the young couple to sign the disclosure on agency as required by the State of Minnesota. Buyers need to understand that at any listing for my broker, I am under contract to work for the seller and protect their interests. If the couple decides to sign a buyers' representation agreement with me, they would be in a DUAL agency when looking at homes listed by my broker. They had seen many homes with other real estate agents, but I was the only agent who explained agency to them or asked them to sign the required disclosure.

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

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

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

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

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

With the perfect home, there were no delay or hesitation in signing the offer; everything just fell into place. With every visit to the home for the inspection and walk-throughs, the young couple became more excited.

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

They answered in unison a resounding, "Yes!! You made it so much easier to find the right home! Especially since for buyers." I don't make this stuff up...Those were their exact words.

After the closing, I received a hug and sincere, "Thank you for everything", from my young clients. As they set off to begin life in their dream home a thought struck me, what a fantastic job I have!

Copyright 2011 www.terieckholm.com