Real Estate Resolutions for Minnesota Home Buyers and Sellers in 2012

As 2011 comes to a close, I noticed a change in the real estate market across the north and east Minneapolis/St Paul metro area.  Home sellers were seeing a more active market during the last quarter and many received purchase agreements. Home buyers who for several years had the luxury of the upper hand in negotiations, suddenly found they were in multiple offer situations when they submitted a contract for a seller's consideration. While there still is a good range of inventory in the higher priced categories, first time buyers had less options than a year or two ago.  Yet a tenacious Twin Cities home buyer can still find good options in almost every price range throughout the metro area. Town homes, single family, split levels, ramblers, two stories, remodels, foreclosures, short sales and new construction.

As a REALTOR® serving Lino Lakes, Ham Lake and communities in the Forest Lake School District, I keep a close eye on the north and east Twin Cities real estate market. During the last few months of the year, I noticed bit of a change in the wind. Activity has continued to improve. Motivated sellers are pricing their homes to be attractive to the more educated home buyers of the current market. Buyers teetering on the edge of the proverbial home buying pool took the plunge and wrote offers as interest rates hit record breaking lows. Negotiations were made and offers accepted. The Minneapolis/St Paul real estate market took one tentative step toward as 2011 came to a close.

So what does that mean for those considering purchasing a home or selling their property in 2012? From Ham Lake to Forest Lake and Lino Lakes to Shoreview, we have begun to build a strong foundation in our real estate market again. Keeping the property value base strong is essential to all Minnesotans. In 2012, homeowners should  RESOLVE to be Real Estate Savvy!

Resolutions for Home Sellers

*Team up with a professional REALTOR®
*Set the right price when first listed
*Make all necessary repairs
*Declutter
*Make each showing count by staging the home for sale.
*Be ready and willing to negotiate.

Resolutions for Buyers

*Team up with a professional REALTOR®
*Get pre-approved for a mortgage  before you start your home search. Check in with your Loan Officer on a regular basis to discuss any change in your financial status or the loan market.
*Write realistic offers that encourage negotiation.
*Understand the foreclosure and short sale process—While prices can seem like a deal, the assumed risk to buyers on an as-is sale is great.

Resolutions for Homeowners

*Even if you do not plan to sell your home in 2012, there are things a homeowner should be doing to maintain and retain property value.
*Keep the interior and exterior of your home in good repair on a continual basis rather than deferring until 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 over invest in materials and curb enthusiastic inflated resale estimates. 2012 home buyers are educated in the value of real estate and won't over pay!
*Be a good steward of your properties and the communities in which they are located.
*Maintain the properties to retain value for your portfolio as well as the neighborhood.

If buyers, sellers, homeowners, investors and real estate professional alike work together to maintain slight momentum in the market that started at the end of 2011, 2012 could make additional strides toward recovery for the Twin Cities real estate market.

Copyright 2011 www.terieckholm.com

Revamped Foreclosure Alternatives—Can the Buyer Pay Back the Money?

Simple question. Granted, had it been asked when many initial loans were taken out and the answer acted responsibly on, we might not be in the mortgage mess that our economy finds itself today. It seems the question is being finally being asked again. Not only to new borrowers, but a modified question, “HOW can the buyer pay back the money?”, is being asked to assist homeowners at risk of foreclosure.

Earlier this week, I read a Newsweek article posted by Daniel McGinn, Focusing on Foreclosures. In the article, McGinn discusses how after the summer takeover of IndyMac, the FDIC introduced a loan modification program that looks at a homeowner’s current situation and what they are able to pay first, then tweaks the loan to keep the homeowner in their house. Note they first look at what the homeowner can pay. Then using a standard formula, they try to set up a payment that will not exceed that amount. This starts by lowering the interest rate or extending the length of the loan. If that doesn’t work, the principle of the loan could be decreased.

While this does cause a loss to the bank on the books, it is in many cases a much lower lost than the cost of foreclosing on the home. And as most people now realize, the total impact of the loss is not just for the bank, many others are affected starting with the homeowner and extending throughout the community.

Finally, things are starting to snowball in a good way. Early yesterday, Citibank announced an expanded moratorium on foreclosures. By the afternoon, the FHFA was announcing an expanded Fannie Mae/Freddie Mac program to keep more people in their homes by reducing there payments to not more than 38% of their gross monthly income. 

While questions the logic of the bailout continue to swirl, I do think banks working to keep homeowners in their houses on affordable payment schedules does make sense. Too bad this simple question wasn’t asked sooner and consistently.
CLICK HERE for additional information on HUD Foreclosure Assistance.

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation 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.

Buying a Home? Check out my new HOME BUYER'S BLOG!

Copyright 2008 terieckholm.com

Anoka County Foreclosures Rate Highest in Metro—How Does this Affect Homeowners?

Another housing report and more bad news; foreclosures are up in Anoka County. In fact, Anoka County ranks in first place in the 13 county metro area for foreclosures at 1.57% according to article by Paul Levy on StarTribune.com, Housing Crisis Hits Hardest in Anoka County. Does this come as a surprise?

Maybe for some, but there are some factors that could help explain. Anoka County is one of the largest counties in the metro with a southern border to Hennepin County where the foreclosure rate has been on the rise for many months. Add this to the housing development explosion all over Anoka County in the past 5 years in communities like Andover, Lino Lakes and Blaine. During this time period, many first time homebuyers took advantage of the zero down programs and adjustable rate financing to maximize purchasing power and possibly purchasing more than they could afford. With balloon payments coming due on these programs, rates rising and property values stagnant or in some cases falling, there is no refinancing safety net. Foreclosure is the ONLY option for those who are over extended.

So how will high foreclosure rate affect the property values of other homeowners in Anoka County?

Two factors give this situation a little more perspective:

1. Real estate is local and Anoka County is a BIG county.


2. The foreclosure rate less than 2% means that 98% of homes are NOT in foreclosure.

Sounds a little better right? Before we get too excited, we have to remember that some specific communities may be hit hard. If you live in a neighborhood where several of the homes are in the foreclosure process, if will probably have a negative affect on the value of your home. Families facing foreclosure often do not have the funds to keep up their homes so when the foreclosure process is complete, the bank has to sell at a discount to find a buyer. Banks don’t give away these homes so property values won’t plummet but they are not getting top dollar either.

If you don’t have to move over the next three to five years, you should be okay as this downturn should balance out in time. However if you need to sell your home this year, it is more important than ever to have good expert advise from someone who knows the community where you live.

Understanding and assessing the neighboring property values and positioning your home to compete with foreclosed homes for sale will take knowledge and expertise of a Realtor who works to sell homes in your specific community every day.

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If you are buying, selling or relocating to Minnesota and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation 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 2008 Teri Eckholm http://www.terieckholm.com/

Real Estate Resolutions for Home Buyers and Sellers in Minnesota

2007 brought a changed real estate market to Minneapolis, St. Paul and the extended Twin Cities suburbs. Home sellers counted market time in months rather than days. Home buyers stayed hidden in the woodwork in the first six months of the year. Those who ventured out to open houses or showings with real estate agents were often confused by the smorgasbord of properties available. In every price range and most locations there were several OPTIONS. Town homes, single family, split levels, ramblers, two stories, remodels, foreclosures, short sales and new construction.

As a Realtor serving Anoka County, 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. Frustrated sellers were tired of showings and lowered prices. Buyers teetering on the edge of the proverbial pool took the plunge and wrote offers. Negotiations were made and offers accepted. The Twin Cities real estate market took one baby step toward forward at the end of 2007.

So what does that mean for those considering purchasing a home or selling their property in 2008? From Ham Lake to Forest Lake and East Bethel to East St Paul we have a strong foundation to our real estate market. Keeping the property value base strong is essential to all Minnesotans. In 2008, we should all Resolve to be Real Estate Savvy!

Resolutions for Sellers

*Team up with a professional Realtor
*Price right from the start
*Make all repairs
*Declutter
*Make each showing count by staging the home for sale.
*Be willing to negotiate.

Resolutions for Buyers

*Team up with a trusted Realtor
*Get Pre-approved and check in with your Loan Officer regularly to discuss market change.
*Write realistic offers that encourage negotiation.
*Understand the foreclosure and short sale process—While prices can seem like a deal, the assumed risk to buyers on an as-is sale can be great.

Resolutions for Homeowners

*Even if this isn’t the year for you to sell, there are things a homeowner should be doing to maintain and retain property value.
*Maintain the interior and exterior of your home and make 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
*Take advantage of the abundance of foreclosures that will hit the market in 2008.
*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 over invest in materials and curb enthusiastic inflated resale estimates. 2008 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 buyers, sellers, homeowners, investors and real estate professional alike work together to maintain slight momentum in the market that started at the end of 2007, 2008 could be the cornerstone of a great recovery for the Twin Cities real estate market.

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If you are buying, selling or relocating to Minnesota and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation 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 2008 Teri Eckholm http://www.terieckholm.com/

Raking in Winter? Yeah, You Betcha!

Winter has come early this year. It looks like we will have a traditional white Christmas...or more accurately, a white December this year. Here we are not even a week into the month and Twin Citians are looking at record snow totals.

The snow has accumulated out of the inch range and into the foot range in Forest Lake and Ham Lake. As a home owner in Anoka County, where the snow has started to pile up, it was time to take action. To avoid the headaches that come with the snow melting off of the roof and refreezing at the eaves, here is a quick reminder.

Avoid ice dams, rake that roof! Yep, pull that funny looking backwards shovel with the extension pole out of the garage and carefully pull off the snow.
So how does it work? Carefully raise the rake over the edge of the roof as far back as the rake will reach and pull down the snow. Be certain to wear a hat, boots and gloves as there is a good chance that snow WILL land on you!

Don’t have a roof rake? This is the year to make the $20-30 investment. Ice dams will form early when the roof is not properly insulated. We take precautions along the edge of our additions as icicles have formed their most quickly in the past. Icicles, while pretty, are a clear sign of ice dam formation.

Not a do-it-yourselfer? Or, do you have a two story home where the rake won’t reach? Call in a professional to remove the snow. Ignoring the problem and repairing a roof or interior ceiling due to ice and water damage could cost thousands!

If you are buying, selling or relocating to Minnesota and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation 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 2007 www.terieckholm.com