Month: April 2014

Key Buyer Questions

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We meet both buyers and sellers who are in different situations every day. It’s what makes our job so great, no day is the same as the one before! Right now with the market so seller friendly we are getting a lot of different questions from buyers. Since the news usually focuses on a National scale and local news tends to be a few months behind many times we are explaining how what you heard last night on WCCO is actually different than what is actually happening. Makes for an interesting conversation, that’s for sure! So here are the most popular questions we are getting from buyers right now and a quick answer to each. If you have your own specific questions, send us an email, we would be happy to answer! northeasthomesforsale@gmail.com

Q: Will I be able to get a good deal in this market?

A: The amazing buyer deals of 2010/11 just simply aren’t there anymore. Back then you could get a house for 10, 20, 30% off of the list price. Now many homes are selling the first day on market, in multiple offers, over list price. That doesn’t mean you aren’t getting a good deal. Home prices are on the rise so if you buy something today at full list price it will most likely be worth more in only one year! It may not be 10% off the list price, but it is still good value. We haven’t been able to say that for a long time.

Q: Can I use the bank I currently do my checking through to get pre-approved?

Choosing a lender is one of the most important decisions you make in regards to home purchasing. We working with lenders ever day, therefore we have seen both very good and very bad lenders. My team has created a list of ones that have been the best for our clients. We will definitely answer any questions you have about choosing a lender and will be very honest. We want this transaction to be as smooth for you as possible. So, it depends on who you bank with (not all banks do mortgage) but if they do mortgage then yes, you can use them!

Q: If I find the right house how long should I wait to make an offer?

There is a great quote going around in this market right now; “if you sleep on it, you may not sleep in it!” Homes are moving fast, if you find one you love, don’t hesitate!

Q: What is up with the pre-foreclosures on Zillow and Trulia? Why aren’t they on my search?

The reasons those don’t show up on any searches is that they are not available for sale yet because the foreclosure has not been completed. There still may need to be a Sheriff Sale, the bank may need to process more docs, etc. It could be 6 months before it hits the market, it could be 2 years. Zillow and Trulia just know when a foreclosure note has been issued. However, there are a few cases when we can go directly to the owners and make a deal. It’s rare but it can happen!

Q: If I want to close by a certain date, when should I start looking?

Let’s say you want to be in your home by Labor Day (so you can have a big family get together of course). We would say think 45 days to close (that puts us at about the last week in July) plus 45 days to start your search, show homes and make offers. That puts us at beginning our search in the first week of June. You still have a month to get pre-approved so plenty of time! 90 days is just a rule of thumb. Some people need more, some people need less.

We hope that was able to answer a few questions you had about looking for a home. If you have any specific questions, reach out! We would be happy to help.

 

 

Low Inventory Causing Multiple Offers, Quick Sales

Nothing like a 10″ snowfall on April 16th! Oh Minnesota. Despite the high levels of April snows that isn’t stopping buyers heading out in bunches for showings. Open houses have been packed. Pre-approval letters are being sent out in droves. This is all good news, except for the fact that we have no listings.

They say a “healthy” market, essentially meaning we have an even number of buyers and sellers, is between 4-6 months worth of inventory(1). What that means is if everyone stopped putting their house on the market starting May 1st we would have 4-6 months worth of inventory to sell before we ran out of homes. At the bottom of the market in 2010/11 we had upwards of 8-10 months of homes on the market. A strong buyers market. Now, however, is a different story. Here is some of the months of inventory in the Twin Cities(2)

Roseville: 2.4

New Brighton: 3.0

Shoreivew: 2.0
St. Anthony: 1.7!!

Minneapolis: 2.6

Edina: 3.0

Entire Twin Cities area put together: 3.1

So your best case scenario is if you are looking in New Brighton or Edina because they are closest to the bottom part of an equal market of 4 months. If you are looking in St. Anthony, like many of my buyers are, it’s been a tough go. These low levels of inventory have caused a rash of “charts” that say sales are declining from last year. Of course they are because we have no homes to sell! This is causing homes to sell in less than 24 hours. I’ve seen homes in Shoreview sell in an hour. Multiple offers are also commonplace in this market. We hope the increase in2014-Jan-Months-of-supply temps the next week and these numbers will convince sellers to put their home on the market to help ease some of that but if you are looking right now, don’t get frustrated. There is a home out there for you, it just may take a little more time than normal!


(1) Data from keepingcurrentmatters.com

(2)Data from Minneapolis Assocation of Realtors; mplsrealtor.com

Talk About Awesome

We see dozens of houses every week. Sometimes it even feels like 100s! Each home is unique it’s own way which is what makes this business so awesome. Below is a link to a really cool article about 30 things you can do in your own home to get extra function-ability from your kitchen, hallways, etc. or how to keep an easier eye on your kids/pets or even just for looks. It’s all there! We think it’s pretty awesome. Just click the photo and it will take you straight to the article!

 

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2014 Spring Selling Guide Sample!

Our 2014 Spring Selling Guide has been released and we wanted to throw up a sample for everyone! It’s a totally free guide that we love to send out. It has a ton of info on where the market is at, where it is headed and what you should look out for over the next few months. If you would like the entire guide feel free to shoot us an email and we would be happy to send it to you PDF! We hope it helps!

JoshFellman@edinarealty.com

LanceFellman@edinarealty.com

 

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