Hunting for a NEW HOME? Why Fall is a Great Time to Buy a House!

Autumn is just a few days away and many people are thinking of  bright orange pumpkins, warm apple cider and the crackle of fallen leaves under your feet. Fall is a time of change. But few people are thinking of moving in the Minneapolis/St Paul area...or are they?

This is a common misconception of Minnesota home buyers. Often they think they “missed out” on the busy season in real estate and few good homes will be listed at the end of the year. But surprisingly, searching for a home in October, can be a very wise decision indeed.

The spring and summer are traditional times when the real estate market is hot. Many homes do list early in the year, but there is a flood of buyers at that time too.  Summer weather is ideal for moving but these are busy months for vacations and activities. Many homes that list in June and July, linger on the market, partially due to there being an influx of listings at this “good” time.  But sellers are motivated to move before the sidewalks get icy and lawns are snow covered so they often reduce their home prices in the fall. Homes that list in October and November are often priced to sell quickly since there can be less active buyers. 

I have seen buyers slack off on their home search at this time when they really should be more aggressively looking. One such first time buyer missed out on several good deals during hunting season when he just wasn’t available to look or move. If you are serious about finding a good deal, hunting for a new home should take priority in the fall. 

I have watched this trend for several years now. The housing prices seem to to be a bit more favorable for the buyers when the leaves start to turn through mid-November. Less buyers, means the market is more balanced. This makes it a great time to negotiate for the seller to pay some closing costs or to get a better price your dream home.  Buyers are scarce as temperatures drop and the holidays approach. Fall house hunting can bag the biggest bargains and best home deals. It is a strategy I recommend. 

READY to Make YOUR Move? 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 2017 terieckholm.com

Why you really NEED a REALTOR to Buy a First Home!

Buying a first home is a very exciting time in a person's life. Whether you are coming from an apartment or a basement bedroom in your parent's house. the idea of venturing into owning real estate for the first time is quite an undertaking. With all the online shopping tool and real estate sites, a homebuyer can virtually tour many homes and even be pre-approved for a mortgage without setting foot outside your current residence. Many home buyers might question why a REALTOR® would even be required at all. Of course this course of action could work for you until want to see a home in person or write up an offer. But, did you realize that calling the listing agent of the property can put you at a HUGE negotiating disadvantage? It all comes down to understanding the concept of agency. 

In Minnesota, real estate brokers and agents are required to disclose the type of working relationship they have with parties in a real estate transaction.  Homebuyers have different types of relationships available to them.  It is important to understand these before you call a real estate agent to see a home or sign a  purchase agreement for a home.  These relationships are called  “agency” relationships and carry with them legal, fiduciary duties and responsibilities for the broker/agent as well as for buyers and sellers. 

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 Agency Important to a Homebuyer? 

When you look for a home, every house listed on the Multiple Listing Service (MLS) has an agreement between the seller and listing broker all ready in place. If a buyer does not sign a contract and attends an open house or calls the listing agent, the nice REALTOR(R) asking all the questions about your financial ability WILL share everything you say with their seller. They are contractually obligated to do so. 

But when a buyer signs a contract with their own 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.  

Still have Homebuying Questions? Email, Call or Text me...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 2015 www.terieckholm.com

Should I Buy or Rent a Home in 2014?

January is a time for making resolutions, decisions and taking stock of one's life. It is a time when many resolve to make a change for the better or their future. It is no wonder there is an uptick in real estate activity the first week of any new year. Finances are one of the things many resolve to put in order and since housing expense is one of the biggest part of any budget, it follows suit that many consider the age old question, "Is it better to buy or rent a home?"

Why should anyone consider buying a home? It is hard to tell whether the economy is good, bad, improving or declining these days. Some media reports say things are improving while other indicate the immediate future is not so rosy. One statistic I recently read in REALTOR Magazine can put things into perspective for the individual. In an article written by Lawrence Yun he states, "On average, home owners have a median net worth of nearly $200,000 while renters are essentially living paycheck to paycheck, with only $4,000 in net worth on average". That is a HUGE difference. 

Location, Location, Location In determining whether it is best to rent or buy a home, location is a factor.  Real estate web search company Trulia, issued a full report last summer on the rent versus buy dilemma. One of the tools they shared is an interactive map of the US showing what metro areas are most affordable.Because length of time you plan to live in a home and tax bracket are key to the equation, these variables are included. The Minneapolis/St Paul metro area is a good place to buy in many circumstances. And, in my opinion based on the average price per square foot, buyers considering a purchase in the very affordable north & east metro, might consider it an excellent opportunity.
By the Numbers If indicators are good geographically, that provides only part of the answer. To determine whether to buying a home is the best option, price of the home, taxes and interest rate on the mortgage need to be considered. Another very helpful tool is a Rent Versus Buy calculator  It is simple to use: Enter your current rent, the price of the home you are considering, and a few other details to receive a detailed report. The calculator will provide an indication of where you will stand financially 6 years after purchasing a home if you have to sell. An interesting feature of the tool is the sliding scale that allows you to adjust the estimated property value increase (or decrease). 


 

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

Tips for the First Time Homebuyer—Get a Home Inspection!

Yea!! You just found home the perfect place to call home—Your DREAM HOME!  As you sit with your REALTOR®  to write up your offer, she asks, “Do you want to do an inspection?” And suddenly, all reason and goes out the window because you answer, “Inspection? Do we really NEED an inspection? The house looks perfect!”

As a REALTOR® representing clients throughout the north and east Minneapolis and St Paul metro, I am surprised when someone opts to forgo an inspection. Buying a home is the single most important purchase most people will make in their lives. It is important to have a non-biased professional inspect the property for defects prior to the final papers being signed.

Homebuyers can have a number of questions about a home inspection. Frequently I hear, what does the inspector check in a home inspection? Who selects the inspector? Who pays buyer or seller? What is the cost of an inspection? What really needs to be inspected?

I believe every buyer, first time or not, should inspect a home they purchasing. But there are different types of few different types of inspections. A total home inspection does cover the house, but often additional experts are required to inspect the total property. And sometimes additional or special testing is required so that the buyer can have a better understanding of the home they are purchasing.

Total Home Inspection—$400-600 depending on the size of home and company selected for the inspection. The fee it is paid for by the buyer.  This is a great starting point for most home buyers and it may be the only inspection necessary for most single family homes.  The basic inspection will be a 2-3 hour top to bottom look at the house; usually including a review of the roof, foundation, mechanicals, structure and built in appliances to ascertain if they are in proper working order. Other testing could be recommended if the home inspector notices any particularly unusual situation that will need expert evaluation. Some inspection companies will charge additional fees for checking outbuildings and unusual features so verify what is covered under the basic service prior the scheduled appointment.

Septic Compliance Inspection—$400-500 for the inspection plus $300-$500 to pump the septic system before the test can be performed. This test is requested by the buyer but traditionally paid for by the seller. In Minnesota, if the septic system is found incompliant, the state will be notified and the homeowner will have one year to bring it up to code. In the case of a foreclosure or short sale, the property owner may insist that the buyer pay for all inspections including the septic system. The cost of purchasing a home with the septic system AS-IS can be risky as the cost of replacing a failing or non-conforming system is $15,000-$20,000.

Well Inspection—$150-$250 This is an inspection of the well by a licensed well installer to determine if the well is in good operating condition. The fee can be paid for by either the buyer or the seller.

Well Water Testing—$100-$200 depending on which elements the water is tested for. In most cases, this test is paid for by the seller. The water is collected by the independent testing service and some tests will take up to two weeks for results unless additional fees are paid for rush testing. Most often a test is for will require a water test for bacteria and nitrates. Some buyers will also request a test for lead.

Inspection for Radon—$150-250 usually paid for buy the buyer. Radon is a naturally occurring radioactive gas which is the leading cause of lung cancer for non-smokers. It is found in many Minnesota homes entering through cracks in basement foundations and open tops of block walls. It is colorless and odorless so most homeowners are not aware of a problem unless the home has been tested. It is estimated by the Minnesota Department of Health Radon Information page, that 1/3 of Minnesota homes have radon levels that pose a substantial risk to homeowners.  As of January 1, 2014, sellers in Minnesota will have to disclose if there is a known radon risk in the home.

Inspection for Lead—$200-300 usually paid for buy the buyer. Home sellers are required to disclose whether there are any known risks of lead in all homes built prior to 1978. Lead was a common ingredient in paint prior before 1978. Many homeowners have not tested so they are not aware of lead risks in the home. It is important to assume that older painted surfaces used paint containing lead. If these surfaces have been painted the risk is limited. But home buyers do have an option to have additional testing completed on the home they purchase. The Minnesota Department of Health has additional recommendations for testing a home for lead on their website lead poisoning can cause permanent problems with health, learning and behavior in children and significant health problems with adults. 

 

Mold Inspections—$200-$1000 Mold testing is costly and according to the Minnesota Department of Health Mold Information Page, it does not need to be done for most homes unless there is an indication of a problem. Stucco homes built in the late 1990’s with poor air circulation have been known to have significant potential problems. Homeowners with stucco homes will often test the home prior to listing and have a report for the buyer to review. Buyers can also elect to retest the home if the previous report is not acceptable to the buyer.  If a foreclosure and short sale owner does not have the funds to do the expensive moisture testing, the buyer may have to pay for the test or accept the home AS IS. This is a risk as repairs for full mold abatement can run into the tens of thousands of dollars and the home would be unlivable during the process. 

Copyright 2013 www.terieckholm.com

Is this the Summer to Buy a Minnesota Lake Home?

Early this spring, I was contacted by a potential seller on Coon Lake in Anoka County. They were contemplating listing their lake home but hadn’t quite decided if this was the year to make a move or not. I completed a market analysis for their beautiful home and property. The current activity really spurred my interest in that area so I have been keeping close tabs on that market ever since. It was simply amazing to me how affordable lakeshore was in the north and east Twin Cities metro even as prices on homes were rising. It should have been no surprise based on the affordability and low interest rates that lake homes really sold quickly in Anoka County this year.

So this got me thinking and once again I decided to check on what was happening on other lakes in north and east Minneapolis/St. Paul market. I decided to once again to ask the question, 

Is this the summer to make a  GREAT DEAL on a Minnesota Lakeshore Home?  

 

To see what kind of an impact the buyer’s market has had Minnesota lakes; I did some research on lake homes sold in first half of 2013. As a REALTOR® working in the north east metro for over a decade, I knew at one time it was difficult to find reasonably priced Minnesota lakeshore…especially properties located in areas with a quick commute to the downtowns and airport. During the slump, while home prices were affordable, lakeshore owners seem reluctant to sell at distressed prices. The market has changed once again so are metro lake homes now affordable or are prices on the rise?

Focusing on the north east metro counties of Anoka, Chisago, Ramsey and Washington, I discovered some interesting facts. I set up a quick search for lakeshore homes SOLD and closed after January 1, 2013. I found 181 single family lakeshore homes that met these criteria. I then took a closer look homes that sold for the lowest and highest price in each county. The 181 listings were on the market an average of 89 days. But as one can expect, the cumulative days on the market was significantly higher at 190 days on the market since many lakeshore homes are removed from the market every fall and relisted again in the spring. When cancelled and re-listed the DOM would start again at zero. However, just a few years ago, the average time on the market for north metro lakeshore was roughly 2 YEARS on the market instead of this more reasonable, six months. So market time has gone down on lakeshore homes, but have prices gone up? On average, no. 


So where were the deals on Minnesota Lakeshore during the first half of 2013? All over the north metro! 

Here are some of the highlights:

Anoka County

Lowest Sold Price $75,000 (Original list price $79,900)
Highest Sold Price $729,800 (Original list price $849,900)
Average $343,472
Total Homes Sold 39

The lowest priced Anoka County lakeshore home in the first half of 2013 was on Coon Lake in the northern community of East Bethel. It was a 1950 cabin being sold by a traditional seller as a tear down or fixer-upper. It was a 2BR/1BA and a 1 car garage with 200 feet of lakeshore. It sold for $75,000 after just 4 days on the market.

On the other end of the spectrum, in the south east corner of Anoka County  in the community of Lino Lakes, a 2004 built 2 Story executive home sold with picturesque views of the environmental Amelia Lake. After multiple price drops to $749,900 and well over a year on the market the home was sold for $729,800. This 3BR/4BA home was chock full of the upgrades including 7+ garage stalls, master suite and 6 acres of privacy.

Chisago County

 
Lowest Sold Price $ 72,500 (Original list price $ 90,000)
Highest Sold Price $ 585,000 (Original list price $625,000)
Average $247,073
Total Homes Sold 53

The lowest priced home was another cabin sold by a traditional seller that was in need of a good clean up or a tear down. It was a 1950’s rambler one bedroom with no bath or garage, located on North Center Lake in Chisago Lake Township. This cabin sold in 13 days for $72,500.

On the high end, there was a 1979 built lake home on Green Lake with 1200 ft. of peninsula shoreline located in Chisago City. This 4BR/2BA stucco/brick rambler with a 3 car garage was a beauty! The home was situated on 3 acres and sold by a traditional seller. It was listed this spring at $ 625,000 and sold in 13 days for $585,000 though its cumulative days on the market was well over a year.

Ramsey County

 
Lowest Sold Price $130,600 (Original list price $154,900)

Highest Sold Price $1,270,000 (Original list price $ 1,599,000)
Average $469,897
Total Homes Sold 36

Ramsey County is the heart of the east metro and is home to the capital city, St. Paul. On the low end of the spectrum, there was a 2BR/2BA/2 Car One and a half story in Maplewood built in 1944 on Carver Lake. It originally listed early in 2013 for $154,900 and took 85 days before it sold as a bank-owned/foreclosure property for $130,600.

The spendy side of Ramsey County featured a North Oaks executive home on Pleasant Lake. The two story stucco home was built in 1982 and sits on 1.4 acres with 5BR/4BA/3Car and 11,100 finished square feet. After being on the market for cumulatively nearly 2 years and a quarter of a million dollar price drop, it sold for $1,270, 000.

Washington County

 
Lowest Sold Price $ 55,500 (Original list price $ 93,900)
Highest Sold Price $800,000  (Original list price $ 995,000)
Average $457,066
Total Homes Sold 53

The biggest lakeshore bargain in Washington County in the first half of 2013 was corporate-owned lakeshore home on Sylvan Lake in Forest Lake. It sold for $55,500 cash after being originally listed for $93,900 earlier in the year. This 2BR/1BA home without a garage was built in 1960 home was sold by the bank as a foreclosure.

The Washington County high ticket home sold so far in 2013 is located in Baytown Township with shoreline on environmental McDonald Lake. The 1995 multi-level brick home was built on a 3.8 acre estate and included an indoor pool/spa and sport court. It took 493 cumulative days to sell this 5BR/5BA/3Car executive home.

Bargains are STILL out there!

Currently there are over 250 single family lakeshore homes on the market throughout the Twin Cities north metro. As of today, there are 28 listed in Anoka County, 80 in Chisago County, 68 in Ramsey County and 83 in Washington County. Prices range from $ 87,500 to $2.65 million and everywhere in between! The deals on Minnesota’s sandy shorelines are out there! Your Minnesota lakeshore dream home could be closer than you ever imagined!

Looking to make a deal on a Minnesota Lake Home? Email or call me for a current list of most promising, affordable lakeshore home listings in the north and east metro. If you are thinking of selling a lake home, there is still time to get listed and sold before the snow flies and lake freezes! 

Copyright 2013 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

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

Facts about the Minnesota Homebuyer in 2012

Here are a few quick facts to show how Minnesota's real estate market compares to the national home sales. In the 2012 Profile of Home Buyers and Sellers complied by the National Association of REALTORS®, there were a number of interesting facts about our local Minnesota market. When information is reported by the media, it is often the national averages. But real estate is local. Here are few more facts from the 2012 report:


Facts about the Minnesota Real Estate Market in 2012

• 41% of recent home buyers were first-time buyers in Minnesota, compared to a national level of 39%.
• The average age of a home buyer in Minnesota was 37 years old. Nationally the typical buyer was a bit older at 42 years of age.
• Household income of typical Minnesota buyers was $80.600; $2K higher than the national average. 
• 58% of 2012 Minnesota home buyers were married couples compared to a national average of 65%.  
• Interestingly 19% of buyers were single females in Minnesota which is higher than the national average of 16%.
•   In Minnesota, 90% of buyers financed their recent purchase compared to 87% nationally. In both cases the average amount financed was 91% of the purchase price of the home.
• Of Minnesota buyers who financed their homes, 27% found the loan process somewhat difficult and an additional 10% found it very difficult. Comparatively nationwide the numbers were 23% and 17% respectively.
• 88% of Minnesotan's would refer their agent or use them again.
• Minnesota home buyers used a real estate agent 95% of the time; this is 6% higher than the national average.
• 93% of Minnesota home buyers used the internet. This number rises to 97% if under 44. This is higher than the national averages of 90% and 96% respectively.
• Only 10% of Minnesotan home buyers bought new construction homes. This is much lower than the 16% sold last year nationally.
• Detached single family homes made up 73% of homes sold in Minnesota compared to 79% nationally.

So what do these facts show? 

Home buyers in Minnesota are continuing to educate themselves on the real estate market. They are increasingly using the internet for their home search but will retain the services of an agent for the actual purchase. If a home buyer plans to finance their Minnesota home purchase, they know if may be a bit more difficult than it was in years past. They are open to buying townhomes, twin homes and condos but are still cautious on new construction. If their agent does a good job, they will refer them to their friends. 

As a Minnesota REALTOR®, I am not surprised by any of the results in this report. I know home buyers in this area of the country are very astute in the process.  They use the internet in combination with their agent to make informed, thought out decisions on their new home whether is it a first purchase or not. They are loyal and reward good service. And I for one, enjoy helping fellow Minnesotan's navigate the process of buying and/or selling their homes.


Copyright 2012 www.terieckholm.com

Holding your OWN Hand when Buying or Selling a Home!

Well over a decade ago, I was on a weekend shopping excursion with my family. Just as we were about to step off the curb into the busy parking lot of the local Target, I attempted to take the hand of my precocious son when he announced to my husband and I, “I can hold my own hand!” And being obstinate and still in that "terrible two" stage, he did.

He put one chubby little fist inside the other behind his back and attempted to step off the curb and into traffic. And like the mama lion I was, I stopped him by the scruff of his neck...well actually, the collar of his jacket.

Realizing his need for independence, we explained to our child the danger of his actions. (Hey Bud...A driver of a car cannot see a tiny person out their windows as they back up their cars.) We compromised. He was allowed to hold his own hand everywhere we went except busy parking lots and when crossing the street. Then he would be required to hold mommy or daddy’s hand or hang on to his brother's stroller for his own safety.

Holding your own hand is good in life but there are times when one must rely on a professional to help them through a new or difficult situation. As a real estate agent, I realize most clients want to “hold their own hand” through a transaction for the most part. They do it with the knowledge that when they will need to “step off the curb”,  I am by their side  ready to explain and guide them through every step of the process. Whether it is a question from a home seller about getting their home ready for the first showing or a first time home buyer wondering whether a townhome or single family home would be a better investment, I am there ready to educate and assist.  

A good REALTOR® knows it is important for the client to make the decisions—it is our job to guide and educate our clients through the home buying or selling process.

Copyright 2012 www.terieckholm.com

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