Because buying Minneapolis real estate is one of the most important and expensive purchases you’ll ever make, it’s worth the time to consider ways you can save money. Here are a few ideas on how to save money on your mortgage and closing costs:
Pay Attention
You have to pay attention to how much the Minneapolis real estate costs. You have to pay attention to how much the loft is worth and how much more you may have to put in the kitty for any repairs that may need to be done. Use these details to negotiate.
Negotiate with the Seller
Negotiating with the seller is expected. You already know you can negotiate on the price of the condo, but did you know you can also negotiate who pays the closing costs? In this buyer’s market, it has become common to ask the seller to pay some or all of the closing costs when you purchase a condo. Be careful with your negotiations. Many sellers will up the price of the condo, if you ask for them to pay closing costs.
Negotiate with your Lender
Negotiating with your lender has become the new norm. In fact, depending on the lender’s Good Faith Estimate and your credit standing, negotiating for a better deal on your mortgage could save you thousands in the long run.
Examine the Good Faith Estimate
A Good Faith Estimate is the estimated settlement costs, or closing costs, your lender will expect you to pay. These can add up to as little as 3% and as much as 5% of the sales price. However, as the name implies, it is only an estimate, and prices are subject to change.
Carefully read your Good Faith Estimate. While some closing costs are usual, such as title insurance, others can be dropped by opting out of a service. Still others are “junk fees,” which you can negotiate for.
When buying Minneapolis real estate, you always want the best deal you can get. The same should be said when picking a mortgage lender. Pay attention to the good faith estimate. In fact, get one from several lenders and compare them. Don’t let the excitement of buying a condo override your good business sense.
Consider Rolling Closing Costs into your Loan
Many new condo owners roll their closing costs into the loan. However, if there’s a way to pay them at closing, it might be better to do so. Paying them now saves you money because spreading them throughout the life of the loan means shelling out more interest.
If you’re looking for a great deal on an even better condo, let me negotiate for you. Call me at 612.877.1676 or email me at ben@cityoflofts.com for more information.
Consumer Reports surveyed over 17,000 readers on the state of their home improvement projects. The results of the home improvement survey point out that you should definitely do your homework before doing the home improvement on your Minneapolis real estate.
Over half of those surveyed went at least $2,000 over budget for room additions. On basement finishing, 56% spent $1,350 over budget. Kitchen remodeling also had 56% going over budget, by $1,200. Lastly, 45% went over budget by $700 on deck additions. What was the reason? Surprisingly, they all had similar reasons:
•Plan adjustments
•Underestimated labor
•Increased cost of materials
•Special tools needed
•Unexpected system upgrades
If you plan to remodel your Minneapolis real estate in the near future, keep these tips in mind so your home improvement goes as planned:
•Do your research – Factor in delivery and removal fees. Make sure you know which products the contractor should have and plan ahead.
•Don’t deviate – Once you have a well-developed remodeling plan, don’t deviate from it. Those who did ended up going anywhere from $2,000 to $10,000 over budget.
•Check the contract – Make sure your contractor’s contract has a set amount for materials. Some have open-ended amounts, which makes it quite easy to go over budget. Read the contract before you sign it!
•Check up on the remodeling contractor– Get the referrals and then put them to work. In other words, don’t just get a list of numbers and names, and then forget to check up on the contractor. Follow through and make sure the contractor is a good one.
A little remodeling can go a long way in helping you sell your Minneapolis real estate. Just make sure you know what you’re doing before you hire anyone to do it!
If you’re trying to sell your home, or looking for a great home to buy, I can help. Call me at 612.877.1676 or email me at ben@cityoflofts.com for more information.
A recent interview with FHA commissioner David Stevens on CNBC gives hope to Minneapolis real estate owners with FHA loans. The Federal Housing Administration now covers at least 30% of new home loans, so when Stevens announced that it might not make its 2% capital reserve, people were understandably nervous. For no reason, Stevens says in the CNBC interview.
Instead of immediate risk management in the form of strict guidelines that might make it harder on potential Minneapolis real estate owners, such as those Fannie Mae and Freddie Mac have put on condo mortgages, the FHA is going for some changes. The changes include hiring a chief risk officer and requiring higher capital standards for loan originators.
Once it was out that the FHA wouldn’t meet its 2% (please note that the FHA itself is the one who broke the news), news portals, blogs and other websites spread the news that the FHA was a train wreck. However, the CNBC interview with Stevens cleared the air a bit.
It appears that the FHA, put in place for instances like this when people can’t afford other loans, actually has two capital accounts. According to Stevens, the FHA has “lots of capital in primary reserve to cover expected defaults.” Combined, FHA capital is over $30 billion dollars.
At the present, says Stevens, the FHA isn’t considering a minimum credit score, and they may not have to. Looking at their portfolio, the average credit score has gone up 60 points, from 630 to 690, pointing to a higher quality of borrowers.
So, when thinking about buying Minneapolis real estate and looking at mortgage companies, don’t forget to look at the FHA. If Fannie Mae and Freddie Mac are lending, the FHA is – and it’s going strong!
You can watch the CNBC video for the full interview.
If you’re looking for a beautiful home, I can help. Call me now at 612.877.1676 or email me at ben@cityoflofts.com for more information.
If you have some Minneapolis real estate to sell or you just want to raise the property value, keeping hip to the market trends is paramount. Kitchens are one of the biggest selling points of any residential property. Energy efficient and cost effective are the catchwords of the day, and recycled is the way to go. Here are a few of the newest eco-friendly kitchen products that can find you buyers and up your property value.
1.EverHot – Made by Water, Inc, the EverHot is an excellent addition to trendy kitchens. No more boiling water, which makes it energy efficient and timesaving, EverHot is an under counter instant hot water heater. It uses less electricity than a 40-watt bulb, but produces up to 60 cups of steaming water an hour.
2.Whirlpool GS5VHAXWA – A refrigerator of amazing proportions, the Whirlpool is considered the most energy efficient of its type. All sleek metal and beautiful lines, this Whirlpool model does everything other fridges do (including providing purified water and making ice) on less than 550 kilowatts a year. Besides being energy efficient, it has the benefit of Whirlpools long history of excellent customer care.
3.Bosch Dishwashers – Energy Star rated and highly rated by Consumer Reports on a regular basis, Bosch dishwashers are the cleaning appliances to have in your Minneapolis condo. Critics rave about how quiet they are, and the company is the only manufacturer that uses EcoSense technology. Push a button and the dishwasher is preprogrammed for optimum time, energy and water efficiency. You can’t get better than that.
When you’re planning to sell or renovate your Minneapolis loft or condo, catch up with the trends, first. Remember – green is the way to go!
If you’re trying to get your real estate ready to sell, I can help. Call me at 612.877.1676 or email me at ben@cityoflofts.com for more information.
Not everybody is dealing with the worry of buying or selling Minneapolis real estate. Some are quite happy where they are, have no intention of moving, and selling is the last thing on their minds.
However, there are a lot of incentives out there to do something in Minneapolis real estate, and many are itching to dip into those incentives. So, if you’re not selling or buying, what can you do? Here are a few ideas:
Upgrades
Upgrades are something you can do to your loft or condo at any time. However, with the many government incentives out there, you can upgrade your loft or condo to be more energy efficient for less. For example, thanks to federal tax credits, you can install solar panels or a geothermal heat pump and get 30% back once you file your federal taxes of course depending on how your condo is setup and if even possible. Instead of just jumping in on upgrades, it’s best to start with an energy audit. An energy audit will tell you where your problem areas are in order of priority, as well as what incentives and credits are available to help you compensate for the cost. In addition to getting you incentives and credits, these upgrades will raise the resale value of your loft or condo. They’ll also lower your utility bills – sometimes by as much as 70%, depending on the size of the problems and the upgrades you make.
Remodeling
If you’ve always wanted to remodel, now is a great time to do it. Contractors and remodelers aren’t as busy as they have been. For you, this means the chance to save money. Bargains are available on materials, labor costs and overall remodeling costs. Be aware that there are some shady companies, so make sure you investigate before signing a contract with anyone.
Refinancing
Although refinancing isn’t the best thing to do for everyone, it’s something to look into if you’re struggling with mortgage payments. Talk to your lender and see what your choices are. If you can get better financing than you currently have, this may be a great option for you!
Just because you aren’t selling your Minneapolis real estate doesn’t mean you can’t take advantage of the down market. Look around, investigate, and see what options you have open as a loft or condo owner to increase the property value or get the best out of the loft or condo you do have. If you’re looking for the best upgrades and remodels to increase your loft or condo’s resale value, I can help. Call me at 612.877.1676 or email me at ben@cityoflofts.com for more information.
If you’re looking at buying a Minneapolis condo, you need to be aware that there are condominium associations that oversee condo developments just like there are homeowner’s associations that oversee subdivisions. However, they may not work the same and can vary widely from condo to condo. Here are a few things you need to ask the association before signing that contract:
1. What’s the ratio of owner-occupied to tenant-occupied units? More owner-occupied units means better marketability if you want to resell.
2. Do the assessments rise with inflation? This doesn’t sound like a good thing, but matching assessments with the rate of inflation means the ability to build reserves for any future repairs.
3. What does the assessment cover (trash collection, condo maintenance, etc.) in the Minneapolis condo? Some association assessments may not cover recreational facilities, for instance, while other condos’ assessments may cover a broad range of areas.
4. What is the turnover in the building? If it’s high, that’s an indication of issues you may not be familiar with.
5. How much of the assessments do they keep in reserve and for what? How do they invest the money? If you’re paying fees and assessments, you want to make sure they aren’t spent frivolously.
6. Are they involved in a lawsuit? If the condo is in litigation, those reserves can disappear quickly.
7. How reputable is the builder? If you can, visit other projects and ask the residents how they feel about their place. Get an engineer’s report to find out if the building is in good shape. Any problems that are there when you buy are yours once you sign the contract.
8. What are the condominium’s bylaws, restrictions, covenants and grandfather clauses? You want to make sure you can live with them. In addition, you’ll want an attorney to look over the documents with you.
9. Is more than one association involved? The larger the development, the more likely that there are umbrella associations. Several associations can mean several assessments.
A Minneapolis condo can be a dream come true if you choose well. Make sure you do your homework!
If you’re looking for a condo that perfectly fits your lifestyle and needs, I can help. Call me at [612-877-1676 or email me at ben@cityoflofts.com for more information.
Everybody has a horror story of some kind, when talking about Minneapolis real estate. There are just some things most people don’t think about when searching for property to buy or sell, whether you’re the buyer, the seller or even, yes, the agent.
Exhibit A
Sheryl (name changed to protect the innocent) is exhibit A. Now, she thought she’d bought a nice house at a good price. Everything seemed to be perfect. The one place that Sheryl went wrong was forgetting to do a home inspection on that beautiful piece of Minneapolis real estate.
After a pleasant day of moving in, she went to take a shower. Turning on the faucet, she noticed the water pressure wasn’t what it should be. Ignoring the indications of worse yet to come, she flipped from faucet to shower. Only a few lonely, sad drips came from the showerhead. To compound the issue, she discovered that the washer didn’t have enough pressure to get her clothes clean. Washing dishes was an exercise in futility and if a hose was turned on in the garden the second story toilet wouldn’t flush.
After much ado, many phone calls and two plumbers, Sheryl found that the beautiful tree in the front yard that had sealed the deal had also burst the pipes. She now had to pay to have the tree removed (it couldn’t be saved), as well as the pipe dug up and replaced. In addition, she owed the water company for all the water lost through the break.
The moral: Don’t skimp on the details just because you’re under pressure.
Exhibit B
Bob, a real estate agent (again, name changed), still loves open houses. They’re a big deal for him and he makes plenty of contacts that way. However, even Bob, who has been in the industry for years, forgot to do a last walk through before a certain open house started. Unfortunately, he and the potential buyers found an unpleasant surprise in the upstairs bathroom, deposited thoughtfully by the current owner. In trying to take care of the surprise, he found the toilet was blocked and the bathroom fan didn’t work. Needless to say, the potential buyers didn’t stick around to tour the rest of the house.
The moral: A short walk-through can save a lot of embarrassment.
With any Minneapolis real estate, there’s always the chance that you’ll miss something. A homebuyer’s checklist or home seller’s checklist is a great way to make sure you don’t. If you do, try to take what comes with a grain of salt, a lot of patience and as much of a smile as you can muster.
If you’re trying to find a great Minneapolis loft or condo without the horror, I can help. Call me at 612-877-1676or email me at ben@cityoflofts.com for more information.
I’m going to tell something that may (or may not) shock you – Minneapolis real estate agents are a dime a dozen. No, no, really. However (and this is a big “but”), great agents are few and far between. Does that mean the others are out to scam the unwary buyer and seller? Not at all.
So what’s the difference? One of the biggest differences is in what they know. A great agent knows what’s going on in their chosen city and throughout the neighborhoods. They do their homework and are seldom surprised by rising trends.
What kind of homework? I’m glad you asked!
1. Keeping an eye on local pricing. Minneapolis real estate agents have to pay attention to the prices in their area. Are they high? Are they low? Are they steady? They have to know so they have an idea of which houses are priced at “fair” market value and which are overpriced or underpriced.
2. Knowing what’s up-and-coming. Agents have to stay aware of new infrastructure possibilities. For instance, there may be plans for a new shopping center to be built. That shopping center will help the community grow, and could become an attractive addition for homebuyers in the area.
3. Who’s taxing and how much? In large metropolitan areas, you have two towns side by side with completely different tax bases. Town one may have rising property taxes, while town two has consistently low property taxes. Those towns with lower property taxes are generally in higher demand than others.
4. Watching the surrounding area. If a large area is overpriced, that general means the outskirts are going to become more in demand. As well, if there are any major train or bus routes getting ready to be installed, these places may become more desirable.
5. Which school ranks best? Schools moving up the A-list of a state mean desirable places for parents. Agents who keep their eye on school rankings are agents who know a particular area’s target market!
In short, great Minneapolis real estate agents keep their fingers on the pulse of the city’s real estate market. This helps buyers looking for the perfect place, and sellers looking for the perfect buyer. Remember – your agent doesn’t have to know everything. They just have to know what’s important to your loft and condo needs!
If you’re ready to work with a real estate agent who’s in the know on what’s happening in the downtown real estate market in Minneapolis, give me a call today at 612.877.1676 or email me at ben@cityoflofts.com.
If you’re buying Minneapolis real estate, you might start worrying about your credit score. Unfortunately, there are a lot of myths about that score, and many individuals actually end up making things worse by following them.
Read this list of common credit score myths and be in the know before talking to a lender:
1. Close out your credit cards. This is a big no-no, especially when you want to buy Minneapolis real estate. Closing out your older credit cards, especially, can actually make your credit score drop.
2. Lower your credit limits. Lowering your credit limits can hurt your credit score. Part of your credit score is based on how much credit you have available.
3. Get good credit by paying all your cards in full. If you’re buying a home, part, if not most of the cost will be credited. What lenders want to see is that you know how to handle credit, not that you don’t have any debt. Instead, use 10% to 20% of your available credit and pay your bills on time.
4. Comparison shopping for the best credit rates is a no-no. Not true. However, if you’re comparison shopping, do so in a short period of time. That way, all queries hit around the same time and get lumped into one “hard” inquiry.
5. Checking your score can hurt you. You’re entitled to one free credit inquiry from each of the three top credit agencies per year. Just make sure you’re the one who asks for your credit scores instead of having a friend at a financial institution do it for you.
6. The more you make, the better your score. This is only true if you use the extra income to pay off your debts. Making more money, by itself, will not increase your credit score.
Of course, you want to make sure you have the best credit score you can if you’re buying Minneapolis real estate. However, before you listen to the hype and myths, make sure you know the facts!
If you’re looking for a new home, I can help. Call me at 612.877.1676 or email me at ben@cityoflofts.com for more information.
You don’t have to! Many sellers are turning away buyers for their Minneapolis real estate because the buyer can’t get the necessary financing. Understandable, but remember, the downturn in real estate has definitely made it a buyer’s market. Simply put, you may have trouble finding another one.
So what’s the “holy grail” of options? What can you do to sell your home when nobody can afford to buy it straight out? It’s called “owner financing”, or “Owner Will Carry” in real estate terms. In other words, you finance the sale. It’s not the end-all, be-all answer, but it’s worked for many as a win/win situation, and here’s why:
• Maintenance – Owner financing isn’t the same as “rent to own”. Once the contract is signed, you no longer have to worry about keeping up repairs.
• Interest – One of the nice things about owner financing is that, since you’re lending money to the buyer, you can charge interest on that loan.
• Quit Claim Deed – You can require the buyer to sign a Quit Claim Deed, which goes into the escrow account with additional instructions. The Quit Claim Deed allows the Minneapolis real estate to be restored to you if the buyer is late with payments by a set amount of days. In this event, the buyer loses the title, as well as all payments they’ve made. Not only is this a big incentive to make payments on time, it’s also a good way to keep yourself protected from nonpayment.
• More potential buyers – Many potential buyers are unable to get financing for a large loan, but can qualify for a smaller loan. This means a larger amount of people will be interested in buying.
The best time to provide owner financing is when there are more houses than buyers. Now is a perfect example of such a time. If you’re having trouble selling your Minneapolis real estate and can afford to finance another buyer, owner financing is choice you should consider to get your home sold.
Would you like more information on owner financing? Call me today at 612-877-1676 or email me at ben@cityoflofts.com.
