The FHA, or Federal Housing Administration, has helped many a condo owner buy a Minneapolis condo for sale by providing mortgage insurance through FHA-approved lenders. However, a change in policy, announced in January, may make it harder for those with poor credit.
Before we talk about FHA’s change in policy, let’s cover a few of the basics about the FHA and how it might help you buy a Minneapolis condo for sale.
What is the FHA?
The FHA is a government agency that provides mortgage insurance to approved lending institutions. It assists condo buyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults. This encourages lenders to make loans to borrowers who might otherwise not be able to get a loan.
What is an FHA Loan?
An FHA loan is a loan provided by an FHA-approved lenderand insured by the FHA. In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay. Because of this guarantee, lenders are willing to make mortgage loans.
An FHA loan might help you get a mortgage by providing:
•Lower down payments
•Lower closing costs
•Easier credit qualifications
Now let’s talk about the changes FHA is making…
The Future of FHA Loans
Until recently, the FHA has managed to weather the real estate turmoil rather well. In fact, the turbulence surrounding other lenders had potential condo buyers flocking to take advantage of FHA loans. However, even FHA’s bank account is starting to suffer. In order to shore up capital reserves and keep 34 million families in their condos, the FHA is changing the rules.
Before the changes, borrowers were required to pay a down payment of 3.5% of the cost of the condo. Now, borrowers with a credit rating below 580 will be required to pay at least a 10% down payment. As well, the good upfront mortgage insurance premiums of 1.75% are increasing to 2.25%. The FHA is now trying to get Congress’ approval to raise the annual premiums from 0.55%, although the amount it will seek is still unknown.
What This Means for You
If you’re interested in buying a Minneapolis condo for sale or Minneapolis loft for sale, but haven’t because you’re waiting for the market to bottom out, you may end up losing out on a great deal. With almost record low mortgage rates, condo values lower than they’ve been for eight years, the first-time and upgrade condo buyer tax credits and a wide selection of condos and lofts, there may never be a better time to buy.
Whether you want to use an FHA loan or a traditional loan, I can help you cash in on this great buyer’s market. Call me today at 612.877.1676 or email me at ben@cityoflofts.com
Last November, when Congress approved an extension on the first-time condo buyer tax credit, potential condo buyers who missed the original deadline were excited. It was another chance to buy a Minneapolis condo for sale or Minneapolis loft for sale and receive an often badly needed $8,000 on their tax return.
Real estate agents were excited as well, because the tax credit extension expanded to include “upgrade” buyers – those who wanted to replace their current condo with a bigger one. The possibility of selling a condo was higher than it’d been in a while. However, expansion to include upgrade buyers wasn’t the only change.
If you’re hoping to buy a Minneapolis condo for sale and take advantage of the tax credit before the new 2010 deadlines, here are a few things to keep in mind:
•Two dates are crucial. You must sign a contract before April 30. The closings must be complete by June 30. One of the best ways to make sure things go smoothly is to get pre-approved for a mortgage before you go condo shopping. Pre-approval tells you, as well as the seller, exactly how much condo you can afford. This way, you don’t waste your time or the seller’s.
•Negotiate without emotion. Potential buyers have lost the condo of their dreams because they became competitive. If you’re negotiating for closing costs, housing price or anything else, make sure that your requests are reasonable. Don’t change something “just because.”
•Taxes must be mailed in. Due to people trying to scam the system, you won’t be able to file your taxes electronically; you’ll have to mail them in. Make sure you’re using the right forms, and, if you need your tax refund by a specific time, you might want to file early.
•Documentation is truly priceless. Again, thanks to scammers, buyers will have to include a signed mortgage statement, proof of residency and a driver’s license with their taxes.
You still have until April 30 to sign a contract on a Minneapolis condo for sale or Minneapolis loft for sale to get the tax credit. Today’s real estate market is beneficial for buyers. Put it to work for you!
If you’d like to take advantage of the condo buyer tax credit, I can help. Call me right away at 612.877.1676 or email me at ben@cityoflofts.com so we can beat the deadlines.
New Years has just turned the corner, and for many with Minneapolis condos for sale, it’s the perfect time still to make some resolutions. Let’s be expansive, though, shall we? Don’t say, “I will sell my loft by May.” We can be more specific than that. Here’s a short list of resolutions that might help you take that home off the sales shelf:
1.Resolve to look over the competition. Not just one or two of the Minneapolis condos for sale, but ten or eleven. Look at them with the buyer’s mindset. What selling points do they have? What negative points do they have? Your goal should be to outshine the competition. You can’t do that if you don’t know what the competition is.
2.Resolve to do a little home improvement. These don’t have to be big projects. Your project could be as simple as adding a few bushes for better curb appeal. You don’t have to spend a lot of money or a huge amount of time for the home improvement to count. What you do have to do, however, is make the improvement count. In other words, don’t forget to walk buyers past whatever you’ve decided to do, or tell your real estate agent about it.
3.Resolve to check with your agent about the state of your home. Not when they think it will sell, but what you can do to up the value. Remember, “value” is a relative term. Upping the value for buyers may be as simple as cutting $5,000 off your price.
4.Resolve to be calm if a buyer suggests a lower price than you want. Consider the options fully – don’t just snap his or her nose off. Can you afford to let the loft go at the offered price? If you can and still want to say no, think about it… how long did it take to get this potential buyer? Can you afford to wait longer?
If you have one of the Minneapolis condos for sale, keep in mind that it’s just one of the condos for sale. You have an amazing amount of competition; not just here, but around the nation. Take a chance to do something a little different. Your New Years may turn out to be even happier than you expected!
If you’re looking for unique ways to sell your home, I can help. Call me at 612.877.1676 or email me at ben@cityoflofts.com for more information
There’s a group of individuals constantly overlooked when someone has a loft or condo for sale in Minneapolis. It’s not just newlyweds, families and women looking for loft or condos. Men are on the look out, too. So what are they looking for? Here are a few points on the list:
Location, location, location – Most men want a place close to their job. No long commutes, no hours on the highway. In fact, it’s one of their biggest considerations when choosing a loft or condo.
The Man Cave – Is your loft or condo for sale in Minneapolis set up with a man cave? Many men dream of having an extra room that can be converted into a place for recreation and entertainment. If you already have a man cave, you’re ahead of the competition!
Surrounding area – In a fun survey, Sperling’s BestPlacesexamined America’s cities and marketing trends to find the “Top 50 Manliest Cities” in the U.S. Believe it or not, Nashville took the top place as the Mecca of manliness. Why? A few reasons:
High number of NASCAR fans
High number of BBQ restaurants
Popularity of hunting and fishing
What other things did Sperling’s look at to decide “manliness?”
Major league sports teams in a city, nearby NASCAR events, monster truck events and local drag racing strips, among other sports venues
Memberships in motorcycle owner groups, bowling, hunting, woodworking, DIY loft or condo improvement
Number of manly retail stores, such as steak houses, sports bars, general hardware stores, sportsman stores, etc.
Percentage of condos subscribing to manly magazines
So what does all this mean to you? If you have a loft or condo for sale in Minneapolis with manly decor as well as surrounding attractions, you have a match made in heaven for the busy bachelor. Okay, so women like monster truck events, motorcycles and DIY, too. And, okay, so the survey is a little silly. However, if you’re trying to sell that loft and are having no luck, it’s definitely something to think about.
If you’re trying to sell your loft or condo, I can help. Call me at 612.877.1676 or email me at ben@cityoflofts.com for more information.Check out my website at cityoflofts.com for your next loft or condign Minneapolis.Good choices are C | W lofts in NorthEast, Zenith condos in the Mill District, 730 lofts in the North Loop, and Track 29 townhomes in Uptown Minneapolis.
If you have a Minneapolis loft for sale or you’re thinking about buying a loft to flip it, here’s something to keep in mind: walking distance. Why? Because a new study commissioned by CEOs for Cities shows that lofts or condos within walking distance of amenities sell for more.
Environmental concerns are rising. More people are walking whenever possible and would rather walk than drive. They’re also becoming more environmentally conscious, as well as health conscious. If there is a Minneapolis loft or condo for sale within walking distance to schools, parks, restaurants, coffee shops, libraries and shopping areas, it’s more likely to be snatched up.
This is true even in the current economy. “Walk-ability,” says Joseph Cortright, the man who analyzed the data, “adds value to residential property just as additional square footage, bedrooms, bathrooms and other amenities do.”
In many places, walk-ability can lead to a sales price of as much as $34,000 more than in areas where you can’t get around without a car. Of course, this isn’t true for every city. In Las Vegas, more walk-able areas correlated to places with lower housing cost. Bakersfield, California, didn’t show any difference at all.
Why is being able to walk around such a big deal? Several reasons:
•The more walk-able neighborhoods usually have better mass transit systems.
•People living in walk-able areas generally weigh less, by at least seven pounds.
•Less money is spent on gas.
•Car owners don’t need to drive as often, and when they do, they don’t have to go as far.
What does this mean for you, the loft owner? If you live in a walk-able neighborhood and have a Minneapolis loft or condo for sale, you have an excellent selling point. Make sure you tell your real estate agent how easy it is to get around. With this knowledge, they can market your home towards all those people looking to use a little bit more leg power and a little bit less engine power. What’s your walk score?
If you’re trying to sell your loft, or looking for a loft / condo in a walk-able neighborhood, I can help. Call me at 612.877.1676 or email me at ben@cityoflofts.com for more information.
Many putting up their loft or condo for sale on the Minneapolis market don’t have a lot of available cash to spruce it up. While staging houses is a definite plus, it costs, as does many of the other suggested “to-dos.” Here are a few cheap, easy ways to make your loft or condo look more inviting to buyers:
1. Put up your personal stuff
Not every buyer looking at a loft or condo for sale in Minneapolis appreciates the fact that someone still lives there. Putting away the following things can help the buyers’ see themselves in the condo:
• your pet’s things (toys, litter box, bowls)
• your medications, toothbrushes and toilet accessories
• any toys
• knick-knacks and personal pictures
• putting up out-of-season clothes or clothes you don’t wear very often to make your closets look bigger
• taking one piece of furniture out of your bedroom
• packing up the small appliances in your kitchen
3. Touch on the trends
Chances are that some of the buyers are paying attention to celebrity trends. Feng shui is a big one, and you can do your part with just a few touches:
• add a fresh bowl of fruit to the kitchen
• put a comfortable couch or chair on the east side of your living room or den
• get rid of reds
Whether you see or feel a difference doesn’t matter. Keep in mind that you’re trying to appeal to potential buyers of your loft or condo for sale in Minneapolis, not make the loft or condo more livable for you. If it helps, pretend that you’re the buyer, seeing the home for the first time.
If you’re trying to get your loft or condo ready to sell, I can help. Call me at 612-877-1676 or email me at ben@cityoflofts.com for more information.
Selling a loft requires preparation. While there are many things to consider, one of the first things you should do is to ensure that your loft makes a great first impression. That’s why it’s important to de-clutter in an effort to prepare your Minneapolis loft or condo for sale.
1. Start with the kitchen
Potential buyers will open drawers and cabinets. So, be sure to de-clutter your pantry, cupboards and drawers. Throw away trash and unsightly items. Organize things such as pots, dishes and utensils for a fresh, tidy appearance.
2. Organize your closet
We’ve all been there. You have company coming over and the quickest way to clean up is to throw everything in a closet. While this may be okay if you’re having a visit from friends, it’s not okay if you’re preparing your Minneapolis loft for sale. Buyers want to see everything, so don’t forget to organize your closet. Make sure all clothes are folded neatly or on hangers, and if you have carpet, make sure to vacuum. If your closet is stuffed, remove clothing you rarely wear and either give it away, sell it or neatly store it.
3. Make bathrooms shine
Nothing’s worse than a dirty bathroom. This is an extreme turn off for buyers. You want your property to have the look of a model loft. This means clearing off countertops and removing personal items, in addition to cleaning showers, bathtubs, toilets, floors and mirrors.
4. Remember the Common Areas
Curb appeal is the first thing buyers see when they visit your property. If buyers view a driveway filled with kid’s toys, unsightly lawn furniture and an un-kept lawn, they may turn away without bothering to go in. Remind your HOA to keep these areas clean and in good shape and make sure they know your unit is being marketed for sale.
These small changes can give the appearance of a well-maintained, clutter-free loft. If you want your property to stand out from the competition, follow these easy steps to prepare your Minneapolis loft for sale.
Thinking of selling your loft? I specialize in selling lofts in this area fast and for the most money. Give me a call today at 612-877-1676 or email me at ben@cityoflofts.com.
