Homes for Sale: What $250,000 can buy around the Twin Cities

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Champlin

Built in 1987, this three bedroom, two bathroom home has 1,558 square feet.  Home features include an updated kitchen, updated bathrooms, a 3 car garage with a large tree'd yard in a quiet cul-de-sac.

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Coon Rapids

Built in 1985, this four bedroom, two bathroom home has 2,308 square feet.  This home features; stainless steel appliances, vaulted ceiling, master suite, fully finished basement with a 4th bedroom, newer siding, windows and gutters, all in a beautiful fenced in yard with an excellent patio for entertaining guests!

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Maple Grove 

Built in 1971, this three bedroom, two bathroom home has 2,193 square feet.  Completely remodeled gorgeous home, that features stainless steel appliances, hardwood floors, finished basement and is close to major highways, and still walking distance to the Elm Creek Park Reserve.

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Minneapolis

Built in 1912, this beautiful Lowry Hill Condo has three bedrooms, and one bathroom.  This condo boats 1,630 square feet, and is in the perfect location, close to Uptown, Downtown and all the major highways.  It features, natural woodwork, in-unit laundry, and the association covers all utilities except electricity!

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Saint Louis Park

Built in 1951, this one story home has three bedrooms, one bathrooms with a finished 1,427 square feet.  This beautiful completely remodeled house features stainless steel appliances, natural hardwood floors,new carpet in the lower level, a large private deck in the backyard and a detached two car garage. 

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Richfield

Built in 1950, this one and a half story home has three bedrooms, two bathrooms and has a finished 1,427 square feet, the basement is awaiting your finishing touches to add more finished square footage. The home is located on a quiet one-way street near schools, shopping & restaurants.

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Would-be to Should-be

Would-be to Should-be - 4/27/2017 

Some would-be buyers have emotional reasons to own a home like having a place of their own where they can raise a family, feel safe and secure and enjoy their friends’ company. Other buyers’ dominant reasons might be financial in nature such as building equity or lowering their cost of housing.

Regardless of what might be motivating people to want their own home, it is easy to justify that now is a good time to purchase. Let’s look at a $250,000 example using a 3.5% Down payment FHA loan.

The total payment will be about roughly $1,835 dollars a month, but you can't forget all the tax/savings benefits. 

In this example, when you consider the monthly principal reduction, the monthly appreciation and the tax savings, even with money added for monthly maintenance, the net cost of housing is less than half the total house payment.

Considering all those advantages, the would-be buyer is spending over $1,100 per month more to rent than it would be to own. In a year’s time, they would lose close to $14,000 per year which is more than the down payment of $8,750 required on this price home.

Most would-be buyers understand that a home is a big investment but they may not understand the advantage of the leverage caused by the low down payment mortgage. The benefits extend beyond a return on the down payment but to the value of the home.

In this example, the $8,750 down payment grows to an equity of $73,546 in seven years based on 2% annual appreciation and normal amortization on a 30-year loan. If you calculated that as a rate of return, you’d be challenged to find anything that could compare with it.

If you need any help or have any questions, don't hesitate to contact me at 763-331-4775 or Scott.Swennes@results.net. Part of my greatest satisfaction is helping would-be buyers understand why they should-be.

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Not Available For All Buyers

Not Available for All Buyers - 2/26/2017 

Lenders regularly publish mortgage rates but they may not be available for all buyers.

Imagine that the mortgage payment based on an advertised rate influenced a buyer to make an offer on a home. After negotiating a binding contract, this buyer makes a loan application and finds out that for any number of possible reasons, that rate isn’t available.

Even if the person does financially qualify for a loan at a higher interest rate, it will not be the payment that the buyer expected when the contract was negotiated.

Lenders evaluate several factors such as the borrower’s credit score, debt-to-income and loan-to-value ratios. These variables are used to assess the risk associated with the repayment of the loan.

While mortgage money is a commodity, it isn’t priced the same way items are that involve cash for goods. The lender puts up the money today based on a promise from the borrower to repay over a long term, possibly up to thirty years.

The simple solution to avoid surprises such as the one described here is to get pre-approved at the beginning of the home search process. Since pre-qualification does not mean the same thing to all lenders, call if you’d like a recommendation of a trusted mortgage professional.

Source: http://www.betterhomeowners.com

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Homes for Sale: What $350,000 can buy around the Twin Cities

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Andover

Built in 2000, this six bedroom, four bathroom home has 3,640 square feet on a third of an acre.  This home features a large updated kitchen, three bedrooms on the upper level, a new roof, new siding and a three-car garage.

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Brooklyn Park

Built in 2005, this four bedroom, three bathroom home has 2,736 square feet.  This home features four bedrooms all on one level, upper-level laundry, granite countertops with a huge center island, an unfinished basement and a three-car garage. 

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Maple Grove

Built in 1989, this four bedroom, three bathroom rambler has 2,518 square feet.  This home features 3 main level bedrooms and two main floor bathrooms, a walk-out basement and an oversized two car garage.

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New Brighton

Built in 1985, this four bedroom, four bathroom home has 2,813 square feet, located in a cul-de-sac.  This home features hardwood floors throughout, 4 bedrooms on one level, a walk-out basement, and an oversized two car garage.

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Saint Paul

Built in 1999, this four bedroom, four bathroom home has 3,002 square feet, located in a cul-de-sac.  This home features a four car garage, a workshop underneath the garage, a large kitchen, and a private lot with mature trees.

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Homes for Sale: What $250,000 can buy around the Twin Cities

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Blaine

Built in 1975, this four bedroom, two bathroom home has 1,856 square feet.  Completely renovated home features updated bathrooms, stainless steel appliances, large master suite and a 2 car garage.

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Brooklyn Park

Built in 1995, this four bedroom, two bathroom home has 2,122 square feet, in a convenient location.  It features an open floor plan with a vaulted Living Room, Dining room, and Kitchen.  Also features an over-sized 3 car garage.

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Hopkins 

Built in 1951, this three bedroom, two bathroom home has 1,638 square feet.  Completely remodeled gorgeous home.  It features stainless steel appliances, hardwood floors, finished basement and close to major highways.

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Minneapolis

Built in 1911, this four bedroom, four bathroom home has 3,027 square feet. The home features a chefs kitchen, hardwood floors, wood stove, finished lower level and a detached two car garage.

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Saint Louis Park

Built in 1911, this three bedroom, two bathroom home has 1,720 square feet. The home features an updated kitchen, hardwood floors, finished lower level with a kitchenette.

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3 Reasons You Should Sell Your Home in 2017

If you have been sitting on the fence about selling your home, or think you should wait until Spring to sell your home.  It's time to jump off the fence, now is the time.  "2017 is shaping up to be the year of the home sellers", says real estate experts.

"Sellers have been in the driver's seat for the last two years, but this year is shaping up to be even better for several reasons" says Jonathan Smoke, the chief economist of Realtor.com.

Free Home Value Analysis

Here is what is driving such a hot sellers market in the Twin Cities.

1. Inventory Shortage

This is the classic supply and demand effect.  When inventory shrinks, available  homes become more valuable, and that's a great thing for sellers.

To put it into perspective, in July of 2007 the Twin Cities hit a peak of 35,906 homes for sale, and as of January 2017 there were only 8,212 homes for sale.  Down 25% from January of 2016, and down over 77% since the peak before the financial crisis. 

Smoke says, "Quite simply, sellers this year have the least competition". 

Not only are their fewer homes on the market, but those homes are spending a shorter amount of time on the market, which has always been a top worry for sellers.  Twin Cities median days on market showed a decrease of 19.5% since this time last year.

Smoke also says, "Many potential sellers don't want to think about having to prep a home for showings and deal with an indefinite period of having to keep things in perfect shape.  Fast moving inventory limits that pain."

2. Mortgage Rates are Still Low

Low rates, means lower monthly payments which brings out buyers, another positive for sellers.

Mortgage rates have been on the rise since this past October and experts are predicting rising rates throughout 2017.  Experts predict mortgage rates to rise close to 5% by the end of the year.  Another reason to sell sooner than later, so you can also capitalize on the low rates.

Others have predicted that if rates do go above 5%, home values will come down.

3. Home Prices are on the Rise

With such low inventory and a buyer demand that is outpacing current inventory, we are seeing home prices increase.  In the Twin Cities the Median Home Price has risen to $232,900 a 5.9% increase since this time last year.

"Higher prices particularly benefit the sellers whose property value plunged during the recession, sometimes to less than they owed.  Thanks to steady rising prices over the past few years, many homeowners who were underwater can now sell without suffering a big loss.


If you're wondering what your home is worth today, Call 763-331-4775/email Scott.Swennes@results.net or Click Here, for your free home value evaluation!

What are the best two months to buy a home?

January, February are the two best months to purchase a home

According to Inman, article here and research using realtor.com data indicates that buyers would be wise to find a home before spring.

Near year, new home?

The Nerdwallet team, says January and February are the best two months to purchase a home, due to less competition, lower home prices and higher interest rates looming.

Take Advantage of the Savings

According to data, January and February have an 8.45% lower sales price than in July and February - the two most popular home buying months. With higher interest rates looming, buyers could feel like it is much more expensive than 8.45%.

The trend is likely to hold true in 2017 says Chief Economist Jonathan Smoke, but savings are likely to not be as drastic.  The 2016 fall housing market was extraordinarily strong, meaning sellers didn't feel the pressure to lower the price in order to get their home off the market.

Despite this, Smoke says to take all the savings you can get, which could be meaning purchasing a home sooner and locking down a lower interest rate. 

Colder Weather keeps the competition inside

In Minnesota on average, buyers are paying a 14-15% premium while buying a home in the Summer versus the Winter, while home sales drop by over 50% in the Winter.

Buyers are still fighting low inventory, although less buyer competition helps to offset the the issue.

For the savvy buyer and agent, this can lead to tons of savings, as the median home sold for $207,500 in February versus $242,000 in July of 2016.  Score!

Higher Rates Ahead

Out of the three reasons to buy a home now, potential home-buyers are most concerned about the recent rise in interest rates, which have been predicted to rise to 5%.

"As we look toward spring and later in 2017, that's another reason to buy in January or February" said Smoke.  "Because rates are expected to be about 50 basis points, or a half of a percent, more as the year goes on."

Key Takeaways:

• Nerdwallet and Realtor.com Chief Economist Jonathan Smoke says January and February are the best months to purchase a home, to find the best deal.
• Interest rates are expected to keep increasing throughout the year, which are expected to reach 5%.
• The median home sold in January sold for $7,003 less than the listing price, and home sales drop by 47 percent.  

If you would like a fun and smooth home buying experience, while being informed from Day 1.  Contact me and I will walk you through each step of the way on how to get started!

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December Report: Minneapolis/St. Paul Real Estate Market Overview

           Throughout the entire year we were experiencing a record low number of homes for sale and available to buyers, while the number of closed sales is increasing year over year, and December was no exception.  Here are the stats for December:

                                                             December ’15       December ‘16     +/-Change

Homes for Sale                                         11,119                           7,997                 -28.1%

Closed Sales                                              3,402                          3,835                 +12.7%

Months’ Supply of Homes                             2.3                             1.6                    -30.4%

Average Days on Market                              52                              43                    -17.3%

            If you're thinking about selling, this may be the best time to sell your home, with decade lows in Months' Supply of Homes, and an average days on market at 43!

Here are the total year to date stats for 2016:

                                                                 2015                    2016        +/- Change

New Listings                                             74,777                           74,143                  -0.8%

Closed Sales                                              52,515                           55,254                 +5.2%

Median Home Value                                 $220,000                      $232,500                +5.7%

Months' Supply of Home                             2.9                                 2.1                     -27.6%

Average Days on the Market                       76                                  64                    -15.8%

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Millionaire to Millennials: Buy a Home!

Earlier this week, CNBC published an article on self-made millionaire David Bach, explaining that not purchasing a home is "the single biggest mistake millennials are making" because buying real estate is "an escalator to wealth."

Bach explained further:

"If millennials don't buy a home, their chances of actually having any wealth in this country are little to none.  The average homeowner to this day is 38 times wealthier than a renter."

In one of his bestselling books "The Automatic Millionaire" Bach writes:

"As a renter, you can easily spend half a million dollars or more on rent over the years ($1,500/month for 30 years comes to $540,000), and in the end wind up just where you started - owning nothing  Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning your own home free and clear!"


So who is David Bach?

He is a financial author, TV personality, motivational speaker, and founder FinishRich.com.  He has written 12 books and has sold over seven million copies including nine straight New York Times Bestsellers.  One of a handful of authors to have four books simultaneously on the New York Times, Wall Street Journal, Business Week, USA Today.

Whenever a well-respected millionaie gives investment advice, people clamor to hear it.  This millionaire gave simple advice - "If you don't yet live in your own home, go and buy one."

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