Showing posts with label best deals on a minnesota foreclosure. Show all posts
Showing posts with label best deals on a minnesota foreclosure. Show all posts

Friday, November 14, 2014

Tips for Buying a Minnesota Hobby Farm Foreclosure


Many people want that very good deal on a big piece of land in the country. Although there aren't as many foreclosures on Minnesota acreage as there were a few years ago, from time to time, there is a deal that might be too good to pass up on a hobby farm in the Minneapolis/St Paul suburbs.  However, buying a foreclosure is different than buying from a more traditional seller. The biggest difference when buying a property from the bank is that buyers are often required to waive their rights to a seller’s disclosure. (This actually does make sense; no one at the bank can properly complete the disclosure because they have not lived in the home.) In most cases, no one from the bank has ever set foot on the property. So when buying a foreclosure on acreage, what are some of the things home buyers should do to be avoid a housing nightmare ? 

First off, find a REALTOR® that works with acreage properties. Your neighborhood agent in the Twin Cities might be the best agent on the block when it comes to selling townhomes, condos and dealing with HOA issues but if they could be over their heads when it comes to dealing with the issues that come up purchasing larger properties. The agent for the bank will not have time to walk a city agent through the necessary paperwork. It is best to find a agent that knows her way around a septic drain field and pole barn. Here are a few more tips that I recommend:  

**Ask for a Compliance Test for the Septic System.

A private sewage or septic system is one of the most costly aspects of a rural home. As a alternative to a public sewer connection used in the city, homes are constructed with a private septic system to handle sewage and waste water. Not all septic systems are the same. Each is designed for the specific property and size of the home. Even a new septic system can fail if not properly maintained. 
How do you know if the septic system is working properly in foreclosed home? Ask the bank to have a third party inspect the septic system and  supply a report of compliance. This MUST be written into the purchase agreement as a contingency of purchase. (i.e. Sale is contingent on the buyer receiving a current compliance certification for the septic system.)
If you have never lived on a home with a private sewage system, it is important to educate yourself on how to best maintain it. 

**Well Disclosure is Mandated by State Law
 
In Minnesota, well disclosure at the time of sale is mandated by state law as a part of the Ground Water Protection Act. A seller must provide information on the location and status of all wells on a property at the time of sale. Just because a bank is selling the home, does not change the law. Any known well and its condition must be documented on a disclosure. If this information is known and not provided, the buyer has 6 years in which to file a claim against the seller. Often when purchasing a foreclosure the bank will ask a buyer to waive  the right to a disclosure and purchase the home AS-IS. In this situation, it is a good idea to visit the MN Dept of Health webpage on Finding Abandoned Wells prior to purchase. Abandoned wells can be very expensive to seal properly. Improper sealing is not only illegal, it can be detrimental to the ground water. Read More information on Private Wells.

**Are there any underground fuel tanks?

Often people looking at acreage for the first time will have questions about the huge propane fuel tank located near the home. These tanks are usually only seen in the city at gas stations where homeowners fill their small propane tanks for the weekend BBQ. In the country, the large tanks are in many backyards as the source of fuel to heat the home and run appliances. But what if there is no visible tank? Don’t immediately assume the home is heated with natural gas. Homes on large acreage are rarely heated with natural gas as the cost of bringing the gas line to the home can be cost prohibitive. Check for underground fuel tanks. Even if there is a propane tank visible, there could be an old fuel tank on the property either above or underground. The removal of underground fuel storage tanks can be dangerous and is regulated by the Minnesota State Fire Marshal as well as the Minnesota Pollution Control Agency.

**Check the Trees! 

Buying a home  AS-IS also applies to the landscaping. Check for dead or dying trees on the property. If any are found, it would be a good idea to assess them to see if they died due to a disease. The most common tree killers in Minnesota are oak wilt, Dutch elm and the emerald ash borer.


Looking for your DEAL on a Minnesota Acreage Home? I can 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 2014 www.terieckholm.com

Friday, February 24, 2012

Home Sweet Home on a Budget! Foreclosures on Acreage in Anoka County


Looking for an Anoka County foreclosure, bank-owned or short sale but need to be able to live in the home immediately after closing?

Good news is that foreclosures are not always destroyed homes requiring major rehab. Some of today's foreclosures can be MOVE IN READY! This economy has forced builders and responsible homeowners alike to let amazing properties go back to the bank. Many are still in pristine condition. Some still may require a bit of cleanup or a few cosmetic changes but there are many in move in condition too.

Here are a few of the treasures I noted on the Twin Cities MLS in Anoka County:

  • Andover 5BR/3BA on 2.5 Wooded Acres. New septic, appliances,& carpet. Sold for $380K in 2007, bank asking $249,900.
  • Starter home in Columbus on 9 Acres. Move in condition 3BR/1BA/2 Car. $169,900.
  • Ham Lake 4BR/3BA/2 Car 1994 Stone front Rambler on 4+ Acre Lot  New Appliances, carpet & septic. Bank offering at $207.5K.
  • 10 Acre Executive Estate in Ham Lake with 12 Stall Garage! 3BR/5BA w/Granite, New Stainless appliances, HWD, whirlpool mstr suite& sauna. Sold in 2008 for $1.1 Million, bank list $495K.
  • Linwood 6BR/4BA 2Story w/3 Stall Garage+Pole Barn on 3 Acres 4500+ Finished +Unfinished Basement. Four fireplaces, new carpeting offered by the bank for $339.9K.
  • 4BR/2BA on 43 Acres backing to Golf Course in Oak Grove with 1100+ finished sq ft and 2 stall garage bank list price $194,900!
If you are in the market for a great deal on a foreclosed home, time to get organized because the rules to buy are a bit different than when working with a traditional seller.


Seven Tips for homebuyers considering a foreclosed home:
  1. Banks LOVE clean offers. Buyers MUST be preapproved with credit checked and employment and funds verified. Documentation must accompany the offer or it won't be considered.
  2. Banks reject lowball offers...no negotiation. They are a business and know the value of the asset they are selling.
  3. Well priced foreclosed homes get multiple offers. Serious buyers put in their best bid first.
  4. Banks sell homes AS-IS. What you see is what you get. Repairs will not be made.
  5. Banks will not pay for inspections in most cases. This includes the septic system and/or well. Be prepared as all inspections could end up being the buyer's responsibility. If you chose to inspect the septic or the county requires a septic compliance test, expect to pay $400-$500 for this inspection. A well test will run around $150. A whole house inspection is $350-$500.
  6. Personal property is not included as part of the sale. So if the appliances are at the home when you close, they are a bonus. The bank will not remove. But they don't guarantee will remain at the home or that they are in working order. This means if someone breaks in the home prior to the closing and takes them, the bank will not replace.
  7. Having your own REALTOR® to represent your interests is essential. The listing agent is under contract to represent the bank. In many cases, the bank will not allow a dual agency so if a buyer contacts the listing agent to write the offer, the buyer does not have representation. This means all of your information goes to the bank...the listing agent is required to tell the bank everything that you say about your financing and the amount you are able or willing to pay. But the agent is not required to tell you anything in return. The agent works only for the bank.

Copyright 2012 www.terieckholm.com

Rent Continues to Rise in Minneapolis & St Paul MN

The September Rent report just released by ABODO shows te average rate to lease a one bedroom apartment in St Paul to be increasing ...