twin cities

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Want to sell this spring but feel stuck? You have options

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Early Bird Gets the Worm

If I were planning to sell my home (which I someday may) I would definitely try to list it in the spring, Minnesota’s peak buying and selling season. Makes sense, right? Snow melts (we hope!), holidays pass and warmer weather makes for easier moving. And if I were planning to sell this year, I would be prepping my house today for a March listing date, April or May at the latest. Why? Because home shoppers are out now, preparing to buy and seeing little to choose from — it’s still very much a seller’s market.

Low inventory, Little competition

The pre-spring Twin Cities housing inventory has been limited, especially in the low-to-mid price range, giving sellers of those homes a big advantage, for the moment. A similar scenario played out last year at this time then came to an abrupt and unexpected slowdown mid to late summer. After enduring fierce competition, multiple offers and lost bids, active buyers may have stepped back in exasperation, but they did not go away. They’re back and they want your house.

If you can swing it, I recommend getting ahead of other peak-season sellers by getting your home on the market as soon as you’re able. With fewer listings comes more views, more potential buyers, and most likely a faster sale. Let’s say you list in late March and accept an offer that week. Considering an average closing period takes 30-45 days, you may be wrapped up well before June, ready to enjoy the summer, or settle into your next home.

Months of Supply | Single Family Homes | Twin Cities*

5-6 months supply is considered balanced. Lower numbers favor sellers, higher numbers favor buyers. Northstar MLS data represents both new and previously-built single family homes of all sizes.

Spring prices

Historically, home sale prices in Minnesota rise with the temperature. The first graph below shows these seasonal price swings in the Twin Cities market over the past 10 years— valleys are cold weather, peaks are warm. Keep in mind, the peak prices you see for summer months reflect sales of homes that were most likely listed in the the spring. Considering number of days on market and the time it takes to close, the sales recorded in May and June are most likely those of homes listed in March and April.

The number of days on market — time between when a property is listed and when an offer is accepted — are typically fewer in the spring and summer, as shown in the second graph. In 2018, the average for days on market in the Twin Cities was lowest in July (38 days) and highest in February (69 days). Minneapolis and St. Paul’s summer averages were even lower at 32 and 27 respectively. So if timing and price matter, list your home in the spring. You’re likely to get a higher offer and spend less time on the market.

 

What if You’re Selling, and Buying?

Maybe you’d like to sell but are afraid or uncertain about having to buy your next house. It’s great to be the seller in a seller’s market, but what happens when you suddenly become the buyer? This is a common and very real fear. What if you list, get an offer right away and haven’t found your next home? Or maybe you do find it but feel pressure to offer more than you want because of your situation?

Many wannabe home sellers, who also need to buy, are feeling stuck for these very reasons. But know that it can work out. In the past year, during this crazy stressful market, I’ve seen many happy clients end up exactly where they want to be after taking the leap to sell. You’ll need to know your limits, stay flexible when you can, and make a plan. Below are some options for navigating the potential sell-buy scenario based on the successful maneuvers of past clients. They’re certainly worth exploring if you’re contemplating a move.

Option 1: Buy then Sell

If you can afford it, buying your next house before listing yours can be a good way to go. Start both projects simultaneously — begin searching and visiting new homes while prepping your home to sell. Enlist the help of a professional at this point because things can move fast. Prepping your home will take longer than you think so start right away. If you want it to move fast to avoid carrying the costs of two properties, do it right the first time. Act as if you’ve already found your next dream home and get going purging, repairing and cleaning, today!

Even though it’s a seller’s market at most price points, buyers still want move-in ready spaces that are HGTV-worthy. Consider staging, especially if your space is vacant or partially furnished after moving into your new place. Priced right, your home will most likely sell faster if it’s staged, and maybe even for more money. Well-appointed spaces are fun to tour and look way more eye-catching in photos. And since web appeal is the new curb appeal, your visually striking pics matter!

Option 2: Sell Rent Buy

You might consider selling your home then renting while you search for your next one. This can be a smart option if you can secure a flexible lease and don’t mind temporary housing. It will give you the luxury of time to search for the perfect house, wait out seasonal highs and feel less pressure to overbid when up against competing buyers. You can step back and take a more calculated approach.

If your rental unit doesn’t have the storage you need, consider leasing an off-site storage unit or asking family or friends with extra space to hold your stuff. Consider living with family or friends too if you have that option.

Option 3: Buy Contingent on Selling Your Home

You can always make an offer on a property contingent on the sale of your home. That means you commit to buying the home only after your house sells and closes. This is a long shot in a hot seller’s market so don’t get your hopes up. It can happen though, and did last summer for some happy clients of mine. Under the right circumstances, a seller may accept your offer — you never know until you ask.

You’ll have a few options when going this route. The best is to already have your home on the market, under contract, and set to close when you submit the offer. Of course things can change to prevent your closing but it’s not that likely, and having secured a buyer should put the other home seller at ease.

Or, make an offer when your home is listed (and you’ve not yet received an offer) — risky for the seller of your new home who has no idea when or if that may happen. Still it’s worth a try if that’s where you are in the process.

Finally, you could submit an offer under the condition you will put your home on the market soon, specifying the listing brokerage and number of days until active. Put yourself in the shoes of these other sellers though — would you choose a contingent offer over non-contingent? Probably not, but you should know this is an option that has worked.

Option 4: Sell Contingent on Buying a Home

In this scenario you would put your home on the market then make any incoming offer contingent on you finding your next home. This typically happens in a hyper-competitive seller’s market, and a buyer may or may not agree to it. What if you can’t find that dream home? Your buyers will be anxiously waiting and watching the market as new homes enter and get snapped up — stressful. It creates more risk for them and if they need to move by a certain day it might not even be possible. But if they’re determined to get your house and are flexible, it can work.

If you are considering a move this year you should start thinking about it now, or soon! And if you have questions about the process, market conditions or anything else, please connect. It’s smart to know your options, keep up with local sales trends, and get help when needed.

 

  • Months of Supply: the inventory of homes for sale at the end of a given month, divided by the average monthly Pending Sales from the last 12 months. Simply put, how many months it would take for all current listings to sell at the recent rate of sales.

  • Twin Cities Region: 16-county metropolitan statistical area comprised of 14 counties in Minnesota and 2 counties in Wisconsin.

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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Good Comps, Bad Comps: Estimating Your Home's Value

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The market is always fluctuating, which means so is the value of your home. What’s it worth today? Good question, let’s figure it out. I often hear talk of using Zillow Zestimates for determining market value — I wish it were that simple. The site’s automated valuation model (AVM) technology might offer a speedy method for getting a ballpark number, but it misses so much more in the math-driven process. Determining market value is part science, but also art — it necessitates keen understanding of what local residents value along with close investigation of what is, has been, and will be available within a well-defined area.

What’s a comp?

A tedious yet more effective way to determine value is to research comparable homes, or comps, and study current trends in the local market — the closer to your home the better. Comps are homes that have recently sold or gone pending, are currently listed and not selling, or were once listed but since expired and pulled. When identifying comps, I recommend keeping your selection current. Start with those sold within the past 6 months, especially in a fast-changing market, then expand to 12 months as needed.

But what is a good comp, and what is a bad one? For the closest matches, you’ll want to consider multiple variables. Begin with the obvious like total finished square feet, location, number of bedrooms, and available garage space. Look too at home style, age, overall condition and recent updates, especially of kitchens and baths.

Location

If possible, choose properties within a half-mile radius of your home. Go beyond, up to 1 mile, if necessary but avoid crossing major roads, rivers, and other geographical barriers. If your home has shoreline, choose other waterfront properties. If it’s next to a highway or on a busy street, follow the same principle. If you know some blocks in your neighborhood are cherished more than others, consider streets best resembling yours.

homeforsale.jpg

Home Features

Start with the obvious — is your home a single-family, multi-family, condo or townhouse? Next search for properties close in home size and lot size with the same number of bedrooms and baths, when possible. Match style as well. For example, if you’re selling a rambler, a 2-story foursquare will not be your best bet. Instead, find similar one-stories. If your home has a distinct architectural style, like Mid-Century Modern or Queen Anne Victorian, look for homes similar in design and pedigree.

The same goes for age. Match historic homes to other older homes. Tear downs and new builds are common in city neighborhoods but can carry a heftier price tag. A typical 80-year-old home is usually no match for new construction in terms of market value.

Condition and Updates

Look beyond the numbers. Study photos and listing descriptions to discern the level of finish and extent of updates. (Touring a home live is better, but an unlikely option once it’s sold or under contract.) Pay particular attention to kitchens and bathrooms (pictured less often, unfortunately). Hunt for recent updates including new appliances, cabinets, counters, and fixtures.

Take note of other value-adding updates such as flooring, HVAC systems, new garage, windows, roof & siding or extensive landscaping. Read descriptions and acceptable offer terms to glean info about condition (photos can be deceiving.) For example, if it was sold “as-is” or as a distressed property it may have been in disrepair which will affect value. Finally, consider extra amenities like carriage houses, finished space above garages, and detached bonus spaces such as offices, art studios, “she sheds”, or ADUs (auxiliary dwelling units).

Get help when needed

This type of market research and analysis is the everyday work of real estate agents. It’s what we do when working with both sellers and buyers. Preparing an accurate CMA (Comparative Market Analysis) is of course a critical step for sellers getting ready to list, but it also helps buyers zero in on a justifiable price when making an offer. Most likely your buyers, their agent and appraiser will all be analyzing comps and local market trends to determine how much your home is worth. You should be too.

It’s helpful for owners to understand which factors and forces are contributing to their homes value when preparing to sell. But digging for comp data and combing local listings can be a time-consuming pursuit. If you’re feeling overwhelmed at the thought of it, consider connecting. I’m happy to search on your behalf and pull together a comprehensive CMA to get you started.

 

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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Moving? Mitigate stress, organize your stuff & know where to throw

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Moving isn’t fun. It’s a physical challenge at the very least that can become a major life disruption with severe emotional stress, for some. The majority of people feel overwhelmed with the process and always in need of more time, especially in the final days and hours just before a move-out deadline.

If you’re facing down a future move take comfort in knowing you are not alone. Most of us loathe a home move, but some are better (or more practiced) at it than others. I’ve seen past clients make moves in stride, through planning, prudence and resourcefulness. We can follow their lead by creating a reasonable plan and sticking to it. Part of that work will inevitably include getting rid of unwanted or unneeded stuff. But where? If you’ve never experienced a major move in your current locale you may not know what goes where. This post suggests ways and places to get rid of your unwanted belongings while laying out a realistic timeline for accomplishing a no-stress (or at least low-stress) move.

To find reputable resources for getting rid I consulted with Zero Waste St. Paul’s co-founder Erin Pavlica who is deliberate in her donations. She searches for venues that give directly to people in need and to places that actually recycle and grind down for reuse. Some of her favorites are shared below.

Setting a Timeline

For those who already know the move-out day, start planning well in advance. Create a timeline working backward from that date. Depending on your work/life schedule, how big your home is and how long you’ve been there, start at least 3 months in advance. For a lifetime of accumulation, begin the process six months to a year (or more) ahead of time, and get help. Friends and family members are invaluable resources of course but look in to getting professional assistance too. Local companies like Gentle Transitions specialize in senior residential relocation and offer a range of related services including general sorting and decluttering.

The backward plan works best for people who know the end date — renters particularly, or anyone not planning to sell their current home. If you’re planning to sell soon and are committed to the move, you can still get going. It’s never too soon to start purging. Your preliminary clearing and decluttering will not just help ease your move anxiety, it will also mark a critical step in getting your home ready to sell.

Strategic Purging

Develop a room-by-room timeline. Each week (or day if necessary and doable) pick one room to tackle. Set up receptacles (bins, boxes or bags) for 4 categories — Donations, Recyclables (separate out organics), Hazardous Waste, and Trash. Examine every shelf, cabinet, drawer, and closet. Make an honest decision about what you can and can’t live without. Have you worn or used it in the last year? If not, say good-bye. Once out of sight, you probably won’t even remember owning it.

Recycled and Hazardous Waste

Determine what your county or city recycles curbside (magazines, glass, cardboard, paper, etc.) then sort accordingly — use the trash bin as the last resort. Hazardous waste like paint, aerosols, and chemical cleaners are typically collected at special sites, often at no cost to residents. Save up for a single trip to that site once all items have been collected throughout your home. Learn more about Ramsey County Hazardous Waste sites here; find Hennepin County drop-off sites here.

Moving_in_Minnesota_TwinCities.jpg

Check with your city or county to learn about recycling and hazardous waste.

(Or ask a trusted neighbor)

Electronics and Technology

Electronics like old CRT (cathode ray tube) TVs, computer monitors, or anything containing a circuit board cannot be placed in the trash. These items contain materials hazardous to humans, animals and the environment and require special handling for safe disposal. Chances are you have old technology stashed somewhere, most people do. Gather it up and plan a single trip to one of many sites around the Twin Cities that will accept and recycle your load, usually for a small fee. Not sure which to choose? Tech Dump is a favorite of Erin Pavlica who values both their affiliation with Jobs Foundation and pledge to be a Fair Chance Business. (They’re not only working responsibly to protect the environment but also to provide jobs and training for people facing barriers to employment.) I’ve dropped off pieces there too, and would go again. They’re easy to find, friendly and will help you unload.

Moving_StPaul_Minnesota.jpg

Avoid illegal dumping

Old TVs like this one contain hazardous materials such as lead, cadmium and mercury — harmful to both humans and the environment.

Trash dumped in alleys becomes the responsibility of that property owner. Respect your neighbors and community by properly disposing of your own unwanted items.

Organics

Be mindful of organic waste* when cleaning out kitchen pantries, cabinets and refrigerators. Unless you maintain your own backyard compost, or already use city recycling, you may need to make a quick trip to a community drop-off site. Check your county or city for organics recycling options — drop-off, curbside pick-up, or both. In Minneapolis residents can request organic waste bins to put alongside trash and regular recycling, or can sign up to use drop-off sites located throughout the city. Ramsey County now has nine free organic drop-off sites (5 in St. Paul) for food scraps and non-recyclable paper. It’s is offering free starter kits at the sites and participating public libraries.

When clearing out cans and boxes of unused and unexpired food or personal items (soaps, detergents, etc.) consider donating to a local food shelf. Keystone, Neighborhood House, Second Harvest Heartland and The Aliveness Project are just a few of dozens located throughout the cities.

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One person’s trash is another person’s treasure

Donate usable household items and clothing to places like Joseph’s Coat, Epilepsy Center, St. Vincent De Paul or others.

Donate, Donate, Donate

Designate at least one collection bin for donated usable items such as clothes, kitchen supplies, tools, sheets, blankets, knick-knacks, art, and other household items. Do not throw away things that could be used by another. Several places throughout the Twin Cities accept these types of donations — and many people need them. You will most likely have to deliver goods yourself, however, some organizations will pick up for you at your home. Dozens of Goodwill stores throughout the Twin Cities have fast and easy drive-through donation lanes staffed with workers ready to unload your car. A quick search yields many more spots including Dress for Success, St. Vincent De Paul, Epilepsy Foundation, Hallie Q. Brown Center, Disabled American Veteran and Joseph’s Coat, another favorite of Erin’s for their generous distribution policy — anyone with a photo ID can shop once a week at no cost.

Some nonprofits specialize in collecting and refurbishing specific products for redistribution. Bikes and pianos, for example, are items that can be worked on, given new life and enjoyed by others who may be unable to afford new. Don’t want your bike, piano, (or mattress)? Someone else might. Check with these places for options to donate:


Bikes

Pianos

Mattresses

  • Second Chance Recycling - Offers free curbside pick-up for mattresses, boxsprings and batteries (recommended by Erin)

  • Bridging - Accepts stain-free, rip-free mattresses and other household items for re-use

  • St. Vincent De Paul - Will pick-up 2+ small to medium furniture items for a tax-deductible monetary gift donation

Sell Your Stuff

Why not make extra money while clearing out? Online sites like Facebook Marketplace, Craig’s List, Letgo, Nextdoor and eBay make it easy if you have time to deal with each transaction. At a minimum you’ll need time for photos (taking and uploading), writing item descriptions and shipping to or meeting up with your buyers. Some are free (Facebook and Craig’s List) and some, like eBay, charge small percentage or per item fees.

Weather and time permitting, a yard sale might also be a good option. With luck you would only have to transport your stuff as far as your front yard or garage, then let buyers take it from there. Advertising on Craig’s List, Facebook and Nextdoor is free and easy. Aligning your dates with a city-wide annual neighborhood sale event could help with traffic and marketing, if it works in your schedule. Be prepared for leftovers once the sale ends. Plan a donation pick-up or drop off soon after to clear the remaining items.

For a whole-house clearing consider hiring an estate sale company to organize, price, advertise and sell for you. There are several throughout the cities including Ebenezer Hand and Hearts, Old is Knew, Esquire Estate Sales, Beehive and English Ivy. Call around to get estimates on pricing and process.

Box it Up

After sorting and purging comes packing up the stuff you want to keep and move. So you’ll need boxes. Where and how do you get them? You have a few options — either buy new, scrounge for used, or rent and return.

Buy New

Tilsner Carton is a local company catering to businesses and corporations but also selling surplus moving boxes to the general public. You can walk in and buy “off the shelf”, no need to order in advance. They’ll even help load them into your car. Quality medium to large boxes run about $1.50 each, assembly required. U-Haul sells medium to large-sized moving boxes priced between $1.50-$2.00 with free in-store pick-up. They’ve also created an online Customer Connect page where you can post and trade used boxes, supplies and even rides. (At last check only 3 postings from Minnesota.) Axman surplus sells inexpensive boxes, though they tend to be mostly small to medium-sized and will require assembly. You can also buy boxes from moving companies and stores like Home Depot, Lowes and Menard’s, usually at slightly steeper prices.

Find Used

Putting a call out on sites like Facebook Marketplace, Craig’s List and Nextdoor is a great way to find free stuff, including cardboard boxes. Often neighbors who’ve recently moved advertise free boxes as a way to pay it forward, and avoid having to break down and recycle. You might also try local restaurants, bars, bookstores and liquor stores to build a supply of smaller sturdy assembled boxes. Gathering free boxes from random places around town takes time, a vehicle and a place to store them, so this may not be an option for some. If it’s too much of a hassle, renting stackable returnables might be a good idea, especially if they offer delivery and pick-up!

Rent

Most big cities around the country now have plastic box rental options for movers. Even giants like U-Haul offer box rentals throughout much of the U.S. (though not yet in Minnesota). Blue Bin Rentals services the Twin Cities market and offers 2-week rentals starting at $139 for 30 boxes. They’ll deliver, pick-up and allow extensions (for a fee) if you need more time. Easy Green Box offers a similar deal for a tad less ($129/30 boxes). College Muscle Movers is another good option for Twin Citizens. Prices there start at $84 for a 1-month rental of 25 MuscleBox Totes, and residents within 15 miles of their Midway warehouse get delivery/pick-up service for free.

Get Started

Moving can be one of the most stressful life events but it can also be an opportunity to ditch unwanted clutter and life patterns to begin anew. Though it may feel overwhelming at times, stay the course and get help when needed! The end is in sight. Before you know it you’ll be settled in your new space, and feeling accomplished having made a fresh start.

Download a printable Purging Checklist here if you need more structure getting started.

 
 

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540

* For yard waste recycling in Ramsey County check out these 7 collections sites; Hennepin County disposal options here. (Thank you Tina for the correction!)

* Update (1/2020): Ramsey County Organic waste sites continue to be added. Click on map to see all current locations.

Free food scraps collection starter kits and compostable bags are available at Ramsey County Yard Waste collection sites.



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Fall 2018 Housing Market Update | Twin Cities

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Last summer’s frenzied market of overbidding to beat multiple offers has noticeably quieted, however, inventory around the metro remains low. Seasonal slowdowns are expected. With the advent of cooler temps, a new school year, and the holiday season, home shoppers downshift to a less aggressive search mode. But they’re still out there, on the sidelines. And new homes continue to enter the market, though at a slower rate than our traditionally fast-paced spring and summer markets. Competition for the most desirable new listings in sought-after locations is still evident with those properties selling within days when the price is right. But the rush to beat out the competition has significantly subsided. And at this time of year many buyers, distracted by holidays and winter weather, are content holding out for anticipated seasonal price-drops. But how does this compare to last fall? Is there a discernible trend? Will next spring and summer be a repeat of last? Both buyers and sellers are asking, “should I wait?”

New fall condo listing in the Cathedral Hill neighborhood of St. Paul.

Seasonal Slowdown

As people’s priorities shift with the season the housing market slows and homes take longer to sell, theoretically favoring buyers. For home sellers, enduring an extended time on market can cause anxiety and a willingness to accept lower offers to avoid the mid-winter slump. Shoppers anticipate this downturn and those with flexibility often wait it out in hopes of getting a deal. I’ve recently talked to many potential buyers who are doing just that. After witnessing the summer drive-up in prices and stress of multiple bids, many have positioned themselves in stable temporary housing (short-term renting, house sitting, living with family, etc.) to avoid the pressure and anxiety of hyper-competitive buying. These buyers may not necessarily be waiting for a winter bargain, but rather the right home and the luxury of time for making a sound decision. It’s a smart move if you can pull it off.

One drawback to slow-season home buying, however, is lack of inventory. As the competition diminishes, so do properties. Last summer’s new listings in the 16-county Twin Cities Region peaked at 9,022, up from a mere 2,158 the winter before. No doubt the same will happen this year. The graph below clearly depicts these year-over-year seasonal dips — a predictable pattern for Minnesota markets. If you can find what you’re looking for, buying this time of year might be advantageous. If not, hold tight, the new year will bring more choices. Just be financially prepared and emotionally ready to face increased competition in a market experiencing an already scant supply of low and mid-priced homes.

Seasonal Changes in New Listings

Low Inventory

How low is low? It depends. Yes, the market has slowed from last summer but not because supply has increased, especially in the lower price ranges. Starter home supply is especially lacking with a meager 1.1 months available in the $150-200K range as of late October. A 5-6 months-supply is considered balanced, favoring neither buyer nor seller, which is currently the case in the move-up market. October data reveal a 5.9-months supply of homes priced $500,000+ across the Twin Cities Region, with 4.0 and 4.2 in Minneapolis and St. Paul, respectively.

Months Supply by Price

Includes all home types in the Twin Cities 16-county Region (single family, condo, townhouse), traditional listings (not distressed). October data derived from the regional MLS.

Changes Ahead

During the past three years we’ve experienced a steady decline in available homes for sale across the metro, tipping the balance in favor of sellers. Is that changing anytime soon? Perhaps, but slowly. Data from the past year show less of a decrease this year compared to previous years — only 1% from last October. Considering we experienced double-digit drops in the years preceding (17% then 14%), this number stands out as potentially significant. It may be signaling a trend reversal and shift toward greater balance in the market.

The months-supply metric also shows signs of leveling. This October was the same as last at 2.4 in the 16-county region for all home types, sizes and sellers (traditional and lender-mediated). Since its high point in 2008 (9.9) that number has plummeted to its low last winter (1.5) but appears now to be holding steady. We’ll see what this winter brings.

What might these changes mean for home shoppers? It’ll be good news for buyers wanting more choices. And a greater number of homes to meet demand could translate to price-dropping, or at least price-leveling in the coming year.

Number of Homes For Sale* | Twin Cites

Decline in number of homes for sale may be leveling out. Includes 16-county Twin Cities Region, all types, styles and sellers (traditional and lender). Data derived from Northstar MLS.

Selling this spring

What about current owners looking to list? Future sellers should be comforted by the inventory numbers which are still historically low. If you’re selling in the low-to-mid market, you should be okay. Location and condition matter too, however. And, despite the limited supply, home buyers’ expectations tend to be high. If you plan to list this spring or summer, start now with repair and update projects (if you haven’t already)! Most buyers expect HGTV-worthy homes that are updated and move-in ready. What does that mean? You should declutter, deep-clean and make small repairs at the very least. Neutralize your paint colors, update lights and fixtures and complete small remodeling projects if you can. Then work with a stager to add or arrange on-trend furniture and decor to match your target market. It may seem like too much in a “seller’s market” but homes that have been thoroughly prepped stand out from the competition and typically sell faster. And, the costs involved are usually recouped through a higher offer price and fewer days on market. Most buyers cannot see past clutter or disrepair when visualizing living in a space. Sellers can help them! Now is the time to start if you are planning a spring listing.

Mortgage Rates Rising

Mortgage interest rates have ticked up and many speculate further increases for the coming year. Have the recent hikes affected buyer behavior? For the most part, no. Buyers appear more focused on changing sales prices than fluctuating interest rates, for now. Why? Perhaps because rates are still historically low and people have been able to purchase the homes they desire. But if you’re thinking about buying soon (in the next year or so) consider closely the cost of another potential rate increase. Even a 1% change could drastically affect your monthly payments and amount for which you qualify. For example, payments on a $250,000 house (with 20% down) jump from $1053 to $1177 per month with a 1% rate hike, and you would end up paying an additional $44,773 in interest over the life of the loan.

You should also be aware of how increased monthly payments can affect your buying power. Fannie Mae and Freddie Mac conforming loan guidelines require certain “front-end” (mortgage-to-income) ratios — typically your monthly payment cannot exceed 28% of your income. If your monthly payment goes up with a 1% rate hike, so must your income if you wish to purchase that same $250,000 home. The consequences of rising interests rates could push you into a lower price-bracket, unless your income keeps pace.

Example: 1%↑ in Interest Rates

Estimates for a $250,000 home with 20% down ($200,000, 30-year, fixed rate mortgage)

Estimates for a $250,000 home with 20% down ($200,000, 30-year, fixed rate mortgage)

Slow and Steady

The Twin Cities Region has experienced a steady rise in median home sale prices over the past several years. As of October the median price of traditionally-sold properties (non lender-mediated) had increased 6.8% over last (with a 5% bump the year before). With supply still lacking in the low-to-mid range, major price drops in the coming year are not anticipated. For city dwellers, St. Paul remains a more affordable option over Minneapolis with a current median sale price of $216,600 compared to $265,500 in Minneapolis.

Condo and single-family homes are on similar tracks across the Twin Cities with 5.8% and 6.0% increases, respectively. Townhouses may be in greater demand showing an 8.2% jump since last October. Keep in mind the real estate market is location-driven and what’s true in your neighborhood may not be the case in another. Even within neighborhoods, demand and price can vary block to block. Overall, however, our region appears stable despite the early chill in the air and consequent drop in market activity.

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*Homes for Sale refers to the number of properties available for sale in active status at the end of a given month. Also known as inventory.

In this this post the Twin Cities 16-county Region include the following: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Le Sueur, Mille Lacs, Pierce (WI), Ramsey, Scott, Sherburne, Sibley, Washington, Wright and St. Croix (WI).

 

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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Should I hire a Realtor? What type of representation is available in Minnesota?

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If you are buying or selling real estate in Minnesota you should know what type of agency representation is available to you as a consumer. Realtors® in Minnesota are required to talk about this with potential clients early on in any communications. If you start talking about your price, terms, or motivation with an agent, expect to be presented with a written disclosure and explanation about different ways agents can represent their clients. This is for your benefit and agents are required to share it. Feel relieved rather than pressured when getting the form — it’s a disclosure, not a contract and will equip you with valuable information to help in your process. If an agent does not present it when you think they should, ask. A good agent will be adhering to ethical standards and this initial interaction may give you insight into future communications and relationships.

To help home buyers and sellers better understand Minnesota’s agency disclosure requirement, the St. Paul Area Association of Realtors® created this quick video. Check it out to learn more!

 

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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Mid-century Modern Twin Cities Home Tour | Fall 2018

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Photos from yesterday’s Docomomo MN fall tour! Made possible by willing homeowners who opened doors and welcomed visitors! Organized by Domomomo and volunteers whose mission is to document and conserve buildings, sites, and neighborhoods of the modern movement. This year’s tour included five homes located throughout the Cities including St. Paul, Minneapolis, Golden Valley and St. Louis Park. Read more about the tour here. Check out last year’s tour pics here.


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Staging to Sell {BEFORE and AFTER}

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Q & A with stager

Becca Schwartzbauer

Grey Duck Staging & Design

Last spring I worked with Becca from Grey Duck Staging & Design to sell a home that had previously sat vacant. Touching every room in the house, she completely transformed its spacious, bare rooms into cozy, livable spaces. It was a remarkable change worth sharing — check out the BEFORE & AFTER pictures below!

Whole-house transformation of a vacant home is just one end of the staging spectrum. Stagers offer a range of service levels depending on your budget and existing decor and can work wonders with homes of willing sellers starting with a simple consultation. To share more about these services and benefits, I turned to Becca for answers to commonly asked questions about staging to sell:

Q: Is staging different from decorating?

A: Staging is meant to be less taste-specific than decorating. We work with the space that’s available and chose size-appropriate furniture. I also choose inventory that is appropriate for the era of the home — textiles and fabrics — keeping the design relevant. We're trying to think about marketing to as many different buyers as possible. I’m staging for the masses and trying to think about the demographics of the neighborhood and who the buyer is going to be, whereas decorating is more about personal taste.

 

Bedroom & office

Q: Which rooms are most important to stage? 

A: You never get the second chance at a first impression so right when you walk in, those rooms are high impact and most important because they are going to set the tone for the rest of the showing. Some of the most important rooms are the highlights of the home — if there’s a second living space, if there’s a beautiful master and en suite — those are the things we really want to highlight. It’s also important, on the other side of the coin, to stage areas that might be flex spaces or spaces that a buyer might not know what to do with. Say there’s a home with a built-in office and bookshelves already, and there’s also a flex space, maybe that room would be better as a craft room or a play area. We can imply what people could do with that because a lot of times, especially in larger homes, people are wondering and asking themselves what they’re going to do with these spaces.

 

Foyer, living & dining rooms, sunroom

Q: If a home seller has furniture of their own, what's the best approach to staging and working with that client?

A: That’s called owner-occupied staging and it's become a big part of my business, especially in this market. I bring in my movers and we rearrange their furniture. A lot of times what people are missing are some of the softer finishes like throw pillows and blankets, lamps on side tables, the kinds of things that balance and bring symmetry to a design. I have done a lot of personal shopping and can bring in those types of fillers for sellers. It’s a less invasive thing to do. It’s someone’s home and it’s so personal.

Q: How do homeowners respond to your work? Do they see the value?

A: I’ve had sellers who have been extremely receptive and like, “Oh my gosh! Maybe we should stay! I never thought about putting the couch over there." You kind of get stuck in one particular layout. How many times do you rearrange the furniture in your own house? It’s not something people do a lot so it’s a fun way to kind of shake off the dust. The other huge part is that it helps them dissociate themselves from the home. When we start to take down family photos, maybe remove curtains to let more light in, or paint a few different rooms it helps to start that mental process.

 

Master Bedroom

Q: What is your process when taking on a new client? 

A: I really like to meet with a new client in the space if it’s possible and ask them questions about how long they've been there, what are some of the challenges that they've had with furniture layout and what are some of the other challenges this home has given them. The more I understand them the easier my suggestions are. I can have a plan A, B and C based on how willing they’re going be. Staging is such a spatial job, I really need to be in the home to get a better understanding of the layout. Then I send them a follow-up email to recap everything we’ve discussed. I send them examples of some of the work I’ve done. It’s about numbers too so we also talk about pricing.

I’ve had a lot of success with motivated sellers who give me the creative control to get their home ready. But it’s important to have that consultation first to get a plan. Understanding how long a seller has been in the home, their reason for moving — if there was a death in the family and maybe it’s the children selling their parents’ place and it’s still furnished. There are a lot of things to consider when doing that initial consultation.

 

Dining room & Kitchen

Small Bedroom

Q: Do you think staging affects the final sale price?

A: Yes, I absolutely do. Statistically (from the National Board of Realtors) staged homes can sell up to 3-8% more than a vacant listing. The staging will pay for itself and also net the seller more than it would have otherwise. And with the way I stage, it’s not a churned out look. I think when people are hyper aware that the home is staged and vacant it might change their offer or negotiation because they know the sellers are in a different position than a normal seller. When someone sees a home that’s vacant, they might think, “Oh, they’re carrying two mortgages, they’re in a financial pitch” so that may affect their offer.

 

 large Bedroom

The positive effects staging has on a listed properties are many — help them visually stand out, sell faster for higher prices, get more shares in social media, and allow buyers to imagine the space as their own. If you are thinking about moving and would like to talk about the steps to get ready to list and sell, including staging, let's talk! I can walk you through the entire process, and connect you to other trusted service professionals.

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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How to Determine a List Price When Selling Your Home

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A home seller's strategy for determining an initial list price can be a critical decision even in a seller's market. When working with clients who are preparing to sell, real estate agents can provide as much data, guidance and advice as possible but ultimately it is, and should be, up to the seller to pick the price. If you are in the process of preparing to sell, or thinking about a future move, read on. Below are three approaches to pricing that can potentially yield quite different results. It's best to consider all scenarios before making a splash in the market. 

Strategy 1: Find the Sweet Spot 

Gather recent sales data and formulate a price as close to those numbers as possible. What kind of data exactly? As an agent I gather this data for my clients using the most accurate and up-to-date resource available in our local market — the Northstar MLS database. I compile a list of comparable properties sold in the past 6 months (or fewer if possible), close in proximity, on similar streets, etc. I also look for the competition. What's currently on the market but hasn't sold yet? And, what homes are under contract waiting to close? When available, I'll also check for expired listings — homes that failed to generate real interest during their time on the market. This side-by-side comparative report, or CMA (Comparative Market Analysis) is a useful tool to begin dialing in on a target list price. In addition to comparables, or comps, I also consider inventory supplies, seasonal differences and sale price over time. I use Infosparks (an extension of the MLS) to zero in on trends in specific neighborhoods, including months supply of homes for sale and changes in median sale prices within the past year. 

The goal of finding the sweet spot is to attract exactly the right buyers who are ready, able and willing to make an offer. Buyers who have been shopping around and doing their research will recognize a fairly priced home and be willing to act in a timely manner. If they've been following the market and touring similar homes, they've probably looked at some of the same comps used to determine your price. 

Strategy 2: Less is More

Find the sweet spot then list for less. A lower-priced home catches people's attention and generates excitement. In a seller's market this is a sure way to generate multiple offers in no time, depending on location and condition. If your goal is to sell quickly, consider going in low. Doing so might actually bring in higher than expected offers.

If your home is in need of updates and repairs but you lack time, resources or motivation for getting them done, this strategy can also be a good option. Buyers' expectations are higher than you may think and they're often looking for any reason go low. For many shoppers outdated finishes and disrepair are reason enough to offer less.

Strategy 3: Retail Pricing

Find the sweet spot then list higher. Some sellers worry about leaving money on the table if they list too low. They want to "just see" if anyone will bite at a higher price, then go down later if they have to. Or, maybe they can't afford to take less, or are only willing to sell if they get a certain price. If you decide on this approach in a seller's market and are serious about selling, you should plan to revisit your strategy if nothing happens after a couple of weeks. Those weeks, especially the first week (and now days and even hours) are critical moments in the life of your listing. First impressions are created and opinions are formed. A motivated buyer might love your house yet deem it overpriced, quickly move on and end up buying another home before you lower yours. Some shoppers are just not in a position to wait out a price drop. And, if the price is eventually reduced people might start to ask, "What's wrong with it?"  If you go with this strategy, be prepared for a longer time on market. Stay flexible and open to reductions earlier than later.  

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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Questions to Ask When Buying a Condo or Townhouse

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Condo living has definite advantages but it can also create unexpected, and potentially unpleasant, scenarios if you jump in without doing your research.  

If you're thinking about buying a condominium or townhouse but have not yet lived in a Common Interest Community, or CIC (condo, townhouse or co-op), ask these questions before finalizing any offer:

  • What's the monthly association fee and what does it cover? Which utilities are shared? Which utilities are paid for by individual units?

  • How is the water use metered? Does each unit pay for individual usage? Or is is split evenly?

  • Can heat be controlled in each unit? Or, is their a central thermostat?

  • Are pets allowed? If yes, which ones and how many? Are there weight, size or breed restrictions?

  • Is the association self-managed? If yes, do the members get along? If not, who manages it and how reputable is the company?

  • How much money is in the reserve account for future maintenance projects?

  • What's the association's annual budget?

  • Who is on the board? Try to talk to a board member directly.

  • Do the other owners have the right of first refusal in the sale of other units?

  • Is there additional storage for each unit? Where? Does it cost extra?

  • Are there any pending building repair/improvement projects? If yes, what? How much is proposed? Are costs split evenly among units? What other future projects have been discussed?

  • Is smoking prohibited? Do any of the residents smoke?

  • How sound proof is the building? Can you hear noise in other units?

  • Who lives in the other units? For how long? Are they owner-occupied?

  • Are long-term rentals allowed? If yes, how many? What percentage can be rented at any one time?

  • Are short-term rentals (like Airbnb) allowed? If yes, are any units currently being used as Airbnb rentals?

  • Where is the common space? Who maintains it?

  • If there's shared laundry, what's the system for using it?

  • If there are unassigned off-street parking spaces, what's the system for using them?

  • Can I make changes to my unit? What, if anything, is restricted?

You may not get answers to all of these questions but at least be mindful of your living space needs and aware of any restrictions that may affect them. 

Statutory Rescission Period

When making an offer on any CIC (Common Interest Community) governed by a Minnesota HOA (Home Owner Association) you have a 10-day period to view all association documents and cancel the offer without penalty. This recession period begins once the last of the docs* has been received (agents should be working diligently to get them delivered as quickly as possible.) Hiring an attorney to review the documents is always a good idea!

* Minnesota requires sellers to provide the following HOA documents: 

  • Declaration

  • Articles of incorporation

  • Bylaws

  • Rules and regulations

  • Amendments or supplemental declarations

  • Organization and operating documents, including budgets and financials

  • Resale disclosure certificate

 

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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Single Women: Top 5 Reasons to Buy a Home

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Single women, the second largest group of home buyers behind married couples, account for nearly 18% of all buyers. Last year they far outnumbered single men who made up just 7%, according to the most recent NAR Profile of Home Buyers and Sellers. 

I've helped several single women purchase homes and have been there myself — I bought my first condo alone nearly 15 years ago. I wanted to know what motivated other women so reached out to friends, family and former clients to find out why they decided to buy solo and what advice they would give others. Read the complete Q&A blog post here. Read their top 5 motivations for buying here:

Top 5 Reasons Women Choose to Buy

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1. Make a Smart Financial Move

A top reason cited by women looking to buy is financial. Specifically, they state a desire to "stop throwing away money on rent" and to build equity in asset ownership. Tax breaks benefiting home owners are also motivating. 

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2. Get Away from Apartment Life

The constraints and inconveniences of renting in a shared space can be trying. Complaints of apartment life include concerns over noisy neighbors, shared walls, lack of privacy and limited parking. Owning a home, especially a single-family house, affords more control over noise and privacy with less worry over bothering the neighbors (or them bothering you). It can also mean having predictable and secure parking options — convenient for having guests, navigating snow emergencies and safer when parking alone at night. 

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3. Enjoy Personal Outdoor Space

Many women desire outdoor space — a private yard, a place to garden, or enough room for a  dog. Though the city parks and paths provide plenty of options, they're never quite the same as having an outdoor sanctuary all your own. 

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4. Make Your Own Design Decisions

Wanting the freedom to paint, decorate and make changes without having to ask permission is a common theme for home buyers. It can be frustrating to live within the confines of a rented space for this reason and others. Owning allows you to paint, replace, knock down and build out as you wish which can be quite satisfying. And, the money and time spent improving your space is usually not wasted — smart improvements add value to recoup when it's time to sell.

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5. Have Something to Call Your Own

Cultivating the feeling of ownership and accomplishment brings pride, confidence and joy. It just feels good to have a place of your own. Whether it comes from reaching your goal or creating a space that's uniquely yours, the positive sentiment can often be reason enough for wanting to buy a home.

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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The Logistics of Listing Your Home

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What exactly happens when you put your home on the market? There are plenty of online guides designed to help sellers get their homes ready to list, but what about the nuts and bolts of getting it on the market? I've had clients ask me simple questions like, "How does the sign get in the yard?" or "How will buyers get in my house?" These are excellent questions often taken for granted by real estate professionals. This post addresses the most basic, behind-the-scenes steps taken when listing a home with a Realtor. 

The Paperwork

When working with a real estate agent you'll be presented with several forms to read, understand and sign. At the very least, expect the following:

(There may be others depending on the type of property or type of sale. Condos/townhomes, for example, will have additional requirements pertaining to association documents.) 

Agency Relationships in Real Estate Transactions

  • A disclosure explaining the types of agency representation available to you in Minnesota. Meant to inform and protect consumers.

Seller's Property Disclosure Statement

  • A multi-page form filled out by sellers disclosing all known material facts about the property. Required in Minnesota. An alternative form (waiver) could also be used.

Listing Agreement

  • A contract between home seller and listing brokerage outlining the terms of the listing including responsibilities of each party, commission and duration.

MLS Listing Input Form

  • Lists all data about the property, authorizes the brokerage to provide the regional MLS with the data and set terms for internet display.

Certification to Withhold from MLS

  • An optional form used to keep the listing off the MLS. Typically used short-term in a "coming-soon" situation or while preparing to list.

Addendum: Disclosure of Lead-based Paint

  • For properties built prior to 1978, a disclosure of any known lead-based paint. Required in Minnesota.

Coming Soon Listing Authorization Form

  • Optional if you would like the listing pre-marketed through through the MLS for a limited time until it's ready for showings. Seller signature required for MLS “coming soon” status.

Measuring

Before entering data into the MLS, your agent will need to measure your home to verify room dimensions, foundation size and total finished square feet. This could take an hour or more depending on the size of your house. Tax records and any past MLS listings detailing measurement information may also be used for comparison. Your agent might also work with a photographer who creates floor plans with dimensions and square footage. 

Staging

Optional but highly recommended, staging can range from full-service professional staging (filling a vacant house, for example) to minor adjustments using your own decor. Prices and terms vary so shop around. If your home is already furnished, one option is to pay for a 2-hour consultation with a stager to generate a "to-do" list for decluttering, furniture placement, fixture updates or even paint color selection. The going rate for this type of service is about $200-$250. If your home is partially or mostly vacant, you may want to get a bid for adding furniture. Again, pricing and terms vary by stager.

Keep in mind, stagers work more like merchandisers than decorators. Their goals are to figure out who will be shopping for your home and make design choices to target those buyers. They highlight the most attractive features of your home while minimizing less desirable ones. Stagers also work to make your home more photogenic. Web appeal is the new curb appeal so having striking photos that catch people's attention is key to successful online marketing. Skilled stagers understand what looks good in photos and will help you select or position furniture and decor to maximize the effect.

Taking Photos

Once your home is decluttered, cleaned and staged, it's time for photos. Your agent should take high-quality photos for the MLS and any other marketing outlets. I hire a professional photographer who also offers 3D tours, and use drone photography when appropriate. Typically this service is paid for by the agent who will work with the homeowner and photographer to schedule a time to shoot. Plan on a 2-3 hours session, depending on the size of your home. You need not be present during the shoot. The outside shot of your home should match the current season, so I try to schedule photos as close to the live listing date as possible.

Hanging a Lockbox

Your agent will hang a lockbox on or near your door to allow other real estate agents, inspectors and appraisers to access your home when you're not present. Plan on providing extra house keys for the lockbox. The box will either be a manual combination or electronic device. The electronic (or Supra iBOX) version uses bluetooth technology and can only be used by Supra key subscribers using the smart phone app to communicate with the iBox. Each opening is recorded in real time so your agent can view who is accessing the key and when via email notification. 

Installing the Sign 

The yard sign is your agent's responsibility. The process can take 3-5 days to install from order date. Expect Gopher State One Call to stop by first, marking any underground utilities before the hole is dug and post installed. After closing, your agent contacts the company for removal.

Scheduling Showings + ShowingTime

Listed properties are typically shown by a buyer's agent who requests a time to tour. In this region, the requests are usually made through a third-party site called ShowingTime. The ShowingTime request can be sent via text, email or phone call to anyone, depending on how it's set up. If the home is occupied, it makes sense to have the occupants (whether they be owners or renters) approve or deny access based on their schedules. If it's vacant or unoccupied for a length of time, ShowingTime has a convenient "go-and-show" option granting instant approval. 

Customize settings

When listing a property, I work with the home sellers to customize all ShowingTime settings before going live. It's important to know who would like to get notified and how, and what the back-up plan is if a request goes unnoticed. I add myself to the list then watch over the incoming requests to make sure they are being approved in a timely manner. Once a showing is approved, the buyer's agent receives an approval notification with access information (lockbox code, etc.) along with any specific instructions (remove shoes, turn off lights, etc.) Showing are typically scheduled for one hour but duration times can be tweaked in the app. 

Get Feedback

After the showing, a feedback request form is automatically sent to the buyer's agent. Listing agents can customize this form to ask specific questions of buyers and their agents, or use the default. Ask your agent to make changes to the form if you're seeking specific input from buyers. The feedback is meant to be shared with homeowners and can be emailed individually as it's received and/or compiled in weekly reports. Home sellers have the option of downloading the ShowingTime app to view feedback and manage showing requests. If you're comfortable with smart phone technology, the app can be useful tool. If not, text or email work just fine. Getting feedback is an important part of the showing process but can sometimes require thick skin. Be prepared for opinions that may differ from yours and ask your agent to follow up with phone calls to get more insight if necessary. 

Learn More

If you'd like to learn more about listing your home, let's connect! It's smart to ask questions and I'm happy to provide answers and support. My job is to make the selling process, which can seem overwhelming at first, as simple as possible. 

 

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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Spring 2018 Housing Market Update | Twin Cities

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Slow & Steady

As we move into spring, trends in the Twin Cities housing market consistently follow the same trajectories as reported last fall. Inventory continues to drop as prices steadily rise. The median home price in the Twin Cities region rose 5% in the last 12 months, from $238,000 to $250,000 and inventory continued its drop to a 2.2 months supply, from 2.7 one year ago.

Twin Cities Median Home Sale Prices

MLS-derived data reflects Twin Cities region, single-family, all sizes, new and existing homes, traditional sales only (not foreclosed or lender mediated).

One difference between the major metros remains — St. Paul is more affordable than Minneapolis. Since last fall, however, Minneapolis has experienced a drop in median sales prices while St. Paul has seen a continued rise. Data from last October showed Minneapolis median prices increasing by 5.4% and St. Paul by 2.6%. This spring the numbers have reversed — St. Paul now shows a 6.9% increase while Minneapolis is now at 3.4%. Are buyers being priced out of Minneapolis and setting their sights on more affordable urban neighborhoods? Could be. I've met many home shoppers who've made this claim.

Who's Buying?

Several new homes hitting the market this spring have sold with multiple offers, within days. Some are even selling before print. The demand for move-in ready homes in lower price ranges appears to be even greater than it was last fall as buyers gear up for warm-weather transitions. Who's competing for these homes? There seems to a mix of buyers going after similar single-family homes in urban neighborhoods.

Empty nesters moving from the suburbs to the city are seeking walkable neighborhoods with amenities, mass transit options and smaller spaces to furnish and maintain. At the same time, a growing number of millennials looking to buy their first home, noting similar preferences and a desire to buy below their means, are going after the same. Add investors to the mix. Empty nesters and millennial may find themselves competing with cash-buying investors looking for single-family rentals or small homes to flip. Occasionally these include parents of college students looking to allay the rising costs of rent.

Get Prepared!

If you are searching for homes this spring it's best to be financially prepared and ready to act quickly. Get pre-approved with a good lender and be as flexible as possible with your schedule. You'll want to tour new listings as soon as possible (a day's delay can often be too late.) I also advise seeing multiple homes and researching neighborhoods well before making an offer. You don't want to make an emotional decision under pressure that you may later regret. Having house-hunting experience, a financial plan and a clear, realistic vision will help ease your stress in this seller's market. 

New spring listing in St. Paul's Hamline-Midway neighborhood: 4 Bedroom/3 bath | 1534 TSF | $315,000

New spring listing in St. Paul's Hamline-Midway neighborhood: 4 Bedroom/3 bath | 1534 TSF | $315,000

Up-and-Coming

The recent data also show more drastic increases in median sales prices in traditionally lower-priced neighborhoods throughout the Twin Cities. For example, St. Paul's Hamline-Midway neighborhood has experienced a 13.5% increase in the past 12 months while Highland Park has experienced only 2.1%. Similarly, neighborhoods in north Minneapolis show double-digit increases while those in higher-priced areas like Linden Hills hover in the single digits. This pricing phenomenon raises the issue of gentrification and affordable housing, a very real concern that extends beyond the scope of this post. To further explore local effects, check additional resources here and here.

If you're searching in an up-and-coming neighborhood be sure to work with a professional who's aware of local trends. What may appear overpriced at first glance may end up selling for well over asking with multiple bids. It helps to have an agent who knows the area and stays up-to-date.

Price & Inventory Changes by Neighborhood

MLS-derived data based on Minneapolis single-family homes, all sizes, previously owned, traditional sales. Chart includes a selection of neighborhoods, not all. Check out St. Paul neighborhood chart here.

A balanced market has a 5-6 months supply of homes for sale. Fewer favors sellers.

Has Spring Sprung? 

Though early spring inventory remains low, many buyers are holding out hope for more to come. Some suspect the drawn-out winter weather is causing future sellers to delay preparing their homes for the market, which may be true. I've spoken to several homeowners who are still gearing up for a spring (or summer) listing. Sellers may also be lacking any sense of urgency, knowing they too may soon be struggling to find the next place to live.

As home sellers delay, some buyers are doing the same. I've heard several shoppers express their resolve to hold out for the perfect home — a smart tactic if time allows. For others with more urgent needs, this low-inventory market is proving to be quite stressful. Let's hope more homes become available as the days continue to warm. The spring market activity which typically kicks in post-Super Bowl may be off to a slow, weather-permitting start. 

If you would like to learn about value increases in your neighborhood or city, please give me a call. If you haven't been following trends in your market, you may be surprised.

 

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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7 Strategies for Competing with Multiple Offers

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Competing with multiple offers? Price matters, but so do terms

Low inventory of homes for sale can cause major frustration for home shoppers facing fierce competition in a seller’s market. Winning among multiple bidders may be challenging these days but not impossible. In a multiple-offer situation there are several moves buyers can make to come out on top. Money matters, but favorable terms do to. Consider the following when preparing your offer:

1. Price

The first and most obvious move for most people is increasing their offer price. The highest priced offer will definitely catch a home seller's attention.

If you're financing however, be aware of how much might be too much. Your bank will later appraise the property to determine its value before agreeing to make the loan. If their appraisal is lower than what you've offered to pay it could become a problem. Keep in mind what you're both willing and able to pay.

2. Financing Terms

Paying with all cash will most likely put you ahead of other comparable offers. It eliminates the loan process, including the bank appraisal.

However, if you need to finance (most people do), putting more down on the loan can also put you ahead of others. And, a conventional loan can be more favorable than an FHA loan. (FHA appraisers may come back with a list of repairs needed prior to closing.)

Another way to strengthen your offer is to promise written documentation of your secured financing a week or two (or more) in advance of the closing date. Ask your agent and lender about this option.

3. Seller-paid Closing Costs

Closing costs are various fees paid by both buyers and sellers on the day of closing. Each side has a separate set of obligations requiring cash for title, bank and broker services performed throughout the transaction. For buyers, costs are typically around 3% of the sale price. For sellers it can be a bit more depending on the broker commission.

Often home buyers use the bulk of their cash reserves on the downpayment, leaving little to cover costs to close. One option for buyers in this position is to ask the seller to pay the their closing fees. But if you’re a buyer facing multiple offers and have access to cash, don’t ask the seller to pay your closing costs. Paying your own way could give you an advantage over other buyers who may be asking sellers to help out.

4. Inspection Contingency

Making an offer contingent on the results of a buyer’s inspection is typical and advised. I always recommend it and sellers will expect it. It is, however, optional. A seller will favor an offer without the inspection contingency. Omitting this contingency is not a common practice however — it puts you at risk for buying the unknown. Think carefully before making this move!

If you do ask for an inspection contingency, shortening the time in which you complete it is favorable to sellers. For example, asking for 7 days to complete inspections is better than asking for 10. The sooner this contingency is lifted the better (for the seller) — another way to sweeten your offer.

5. Closing Date 

If you can be flexible with moving and closing dates make it known when submitting your offer. When your agent fills in the purchase agreement she or he will need to enter a specific closing date but can add wiggle room with words like "on or before". Having a flexible date may give you an advantage, especially if the sellers are also buying and trying to coordinate their own move with another set of sellers and buyers.

6. Letter to the Seller

Sometimes it's personal. Writing a heartfelt letter to the sellers and sharing a bit about yourself and all the reasons you love their home might work to your advantage. It can be especially powerful if the sellers share a similar sentiment and care about future ownership. Keep it short and sweet, a paragraph or two is fine.

7. Earnest Money

Earnest money is "good faith" money. It's cash you put down when you making an offer to show you’re serious and willing to take a risk. It's typically 1-2% of the offer price but can be any amount you choose, or none. If all goes well it will go toward the downpayment. If you cancel for reasons not outlined in your offer you could lose it altogether. Putting down more, if you have it, demonstrates your serious intent and financial capability.

When the offer is accepted, your earnest money will be put into a trust account within a few days, so make sure you’re prepared before committing.

 

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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Buying your first home? Advice from a local mortgage advisor

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It's easy to get overwhelmed when planning to buy your first home. Searching for the right house, in the right neighborhood with needed amenities at a price you can afford is often just half of it. Unless you're paying cash, the other major part involves navigating the process for financing it. Knowing what you should do ahead of time and shopping for the best loan can be confusing for anyone new to the world of home loans.

I recently sat down with a trusted mortgage professional to get answers to a few of the most common questions asked by those shopping for their first home. Chris Kvikstad, president of Kvikstad Mortgage Solutions, works often with first-time buyers. In this Q&A he offers practical advice for anyone curious about the first steps of home financing. 

Q: What should I do in advance?

A: The first thing is to look inward and think about why you want to purchase a home.  How long do you think you will be there, how stable is your income situation, and are you comfortable with taking on the responsibility of any repairs should they be required? 

Once you have determined that you are indeed ready to purchase, then think about your lifestyle and whether a condo, single family home, or townhome would be ideal.  Think about how much you could comfortably spend each month on the combined housing payment, and then we can proceed together from there, using the steps above, and begin working out the numbers to see what a comfortable price range might look like. 

If you have any bills that are past due, bring those current before we start the process, otherwise, that might delay the process as we work together to resolve those types of issues if they occur.

Q: How do I know how much I can afford?

A: This is a good question and the one that comes up most frequently with my clients.  There are a few different ways we can approach this.  The first step is to ask, “What is a comfortable payment for you that would include all of your housing expenses?”  We can use that amount and then work backward to calculate a general home price range that would include various expenses, such as property taxes or homeowner’s insurance, monthly association fees for a condo or townhome, and so on. 

Monthly Expenses

Depending on whether you're looking for a single family home or a townhome or condo, the price range we calculate together can vary according to those different expenses.  We look at current income and monthly living expenses, such as car loans and student loans, and we also want to take into account any surprise expenses that can come up after purchasing the home, such as a new furnace or normal maintenance and repairs.  While this last part isn’t a requirement for financing, I like to broach that subject so that people are mentally planning ahead for surprises. 

Lessons learned

During the years leading up to the housing crisis, too many people put on their blinders and only wanted to focus on the absolute maximum amount they could be approved for.  Houses were appreciating in value very rapidly, often in the double digits per year, and the fear of “missing out” on a great deal was a very real emotional component.  That has all changed now, and I think everyone is taking a much more conservative and realistic approach when it comes to this very important piece of the puzzle.

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Verifying Employment

Self-employed vs. employee?

Hourly vs. salaried?

Base wage + incentive compensation?

 

Q: What information will I need when applying for a loan?

A: We'll need personal information and will need to know whether you currently rent or have owned a home in the past.  When it comes to verifying employment, the required documents will depend on the type of employment – self-employed versus employee, hourly rate versus salary, and whether there is incentive compensation in addition to a base wage.  Generally, a couple of recent, back-to-back pay stubs and the last two years of W-2s are sufficient to get the ball rolling for most people.  We need to verify assets, as well, so this generally means two months of bank statements plus the most recent statement for any other accounts, such as retirement or investment accounts.

Q: How much do I need for a down payment?

A: We have many excellent programs today that do not require substantial down payments.  In fact, both Fannie Mae and Freddie Mac have outstanding first-time buyer programs that only require 3% down, and FHA requires 3.5% down. Our military veterans have the ability to purchase with as little as zero down through the use of their VA eligibility for VA financing.  VA loans are a wonderful program and I really enjoy working with our veterans. In all of these cases, the down payment can come from a gift from a relative. 

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Less than 20% down

Ask your lender about first-time home buyer programs, FHA, or VA loans that require low down payments.

These reduced down payment requirements really make it convenient and affordable for people to take that next step towards home ownership.  You can always put down more than the minimum requirement, of course, and the more you put down the lower the monthly payment will be.

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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Getting ready to sell your home? Start with this checklist

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Moving to a new home is exciting but preparing yours to sell can be overwhelming without a game plan. If you're considering listing yours in time for the spring market, you'll want to begin planning soon! Here's a checklist of general repairs and improvements to help you get started (downloadable version here.) If you have questions specific to your property and would like advice on getting your home ready to list, give me a call to talk about the best use of your time and money. 

Home Selling Checklist

First Steps

❏   Check with your city to see if you need a pre-sale inspection. Schedule an inspection, if required. 

❒   Make any mandatory repairs and reinspect, if your city requires it. Close out any permits.

❒  Connect with a real estate agent to discuss process, pricing, disclosures and listing contracts.

❒  Start purging! Donate unwanted items. Organize keepers in bins/boxes for easy moving.

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Start Making Low-cost Improvements

❒  Paint, stain or replace your front door. 

❒  Fix leaking or loose faucets or plumbing fixtures.

❒  Tighten or replace knobs. Oil squeaky doors.

❒  Repair old light fixtures and outlets.

❒  Remove excess wall decor, fill holes, repair cracks and paint. 

❒ Declutter. Remove knick-knacks and small furniture pieces. 

❒  Control pests problems. Hire a professional if need be. (Past infestations must be disclosed in writing.)

❒  Repair ripped screens and broken glass in windows.

❒  Remove old or broken window coverings (blinds, broken rods, outdated curtains).

❒  Replace dirty furnace filters.

❒ Clean gutters.

❒ Replace old or mismatched switch plates & outlet covers with new.                                      

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Plan for Bigger Projects

❒  Eliminate any eyesores (replace peeling linoleum floors, fix cracked steps, remove outdated wallpaper, etc.)

❒  Professionally clean newer carpeting. Replace old, or expose the hardwood. 

❒  Selectively paint walls. Repair damaged walls and ceilings and paint neutral. 

❒  Replace broken garage doors and openers.

❒  Restain or repaint decks and porches.

❒  Scrape and repaint peeling paint on trim and siding.

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Finishing Touches

❒ Add pots of colorful (seasonal) plants to your front entry. 

❒  Add new welcome mats.

❒  Replace all burned out lightbulbs.

❒  Clear off counter spaces and clean out closets.

❒ In warmer months, keep grass freshly cut. Weed, and trim hedges. Keep snow off walks and driveway in winter.

❒ Freshen your landscape with new mulch. 

❒ Stage, especially main rooms (see tips on staging), or hire a professional home stager.

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Clean!

❒ Deep clean kitchens appliances (in and around).

❒ Clean and declutter kitchen cabinets and under sinks in kitchen and bath.

❒ Clean all windows (inside and out). Hire a professional window cleaners if necessary.

❒ Scrub all bathtubs, sinks and tile to remove stains and soap scum.

❒ Polish stainless steel sinks and surfaces. 

❒ Steam clean carpets (or replace).

❒ Dust off and clean out light fixtures. (Easy to overlook! Recheck for burned out bulbs.)

❒ Sweep garage floor and remove unused items (old cans or paint, etc.)

❒ Clean/dust all floors, walls, trim and window sills.

Additional Ideas to Add Value if Your Budget Allows

  • Update outdated HVAC systems.

  • Replace outdated kitchen appliances.

  • Consider adding a patio or deck if you don't have one.

  • Update light fixtures.

  • Replace shot windows or doors.

  • Add a kitchen backsplash.

  • Update bathrooms (replace outdated fixtures, replace older toilet with a low-flush, install new vanity countertop and freshen grout.)

  • Finish basement or attic space to add square footage.

Download a printable checklist here.

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

 
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Single woman buying a home? Inspiration and advice from those who've done it!

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If you are a single woman considering buying a home of your own, you're not alone. Last year single women made up 18% of all home buyers, coming in second behind married couples (65%) and outnumbering single men who accounted for just 7%, according to the 2017 NAR Profile of Home Buyers and Sellers.

Home Buyer Characteristics

Data derived from the NAR (National Association of Realtors) Profile of Home Buyers and Sellers, 2017

So, what's behind the trend? Why are women buying? This survey didn't address women's motivation but it's easy for me to imagine why. Fifteen years ago I bought my own place, solo. I mostly wanted to stop paying rent and put money toward my own investment rather than someone else's. My top reason was financial but there were others. Having control over my own space, access to the outdoors and secure off-street parking were important considerations more easily attainted through home ownership. I've never regretted my decision and have since helped several other women do the same. 

Recently, I asked a few past clients, friends and family members who have also bought homes on their own, "Why did you decide to buy? What have you loved about owning? And, what advice would you give other women considering buying their first home?" 

Representing a range of ages, life stages, and professions throughout the Twin Cities, the majority of women interviewed expressed a common sentiment as homeowners — few regrets. Five of these women share their thoughts, and respective homes, below. Read on to hear their motivations along with advice they'd give others who might want to do the same.

Lisa, Minneapolis

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Why did you decide to buy?

I decided to buy because I wanted to own something rather than throw my money away on rent. And to have a yard! I love to garden. It was time for me to move on to the next step in being an adult!

What do you love about owning your own home?

I love not having an apartment above me with noise. I love not having my car parked on a street. I love being able to paint and decorate as I want. And the tax deduction really helps too! 

What advice would you give other women who are considering buying their first home?

Don’t forget there will be expenses to save up for. Every year. Lawnmowers, exterior painting, shoveling, and other unknown repairs. Put away about $1500-2000 a year for those unknowns and upgrades.

Michelle, Golden Valley

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Why did you decide to buy? 

The main factor was a desire to have control over my own space. I had lived in high-density developments for >10yrs and also desired to have no shared walls. The idea of my monthly payments going toward owning rather than renting was a third factor.

What do you love about owning your own home? 

The benefits are numerous, but the most significant for me is that I feel freer in my own space vs properties I've rented. One of the major benefits is that you are building equity in an asset that can benefit you in the future.

What advice would you give other women who are considering buying their first home?

Be prepared for things to need attention (e.g. plumbing, HVAC, deck/patio maintenance, yard/weed maintenance, snow removal). Even in new homes, things need attention. So plan for these things in your budget on top of the mortgage even if you have the intention of doing a lot of the work yourself. It'll cost you in service fees or buying the equipment to do it yourself, which you likely wouldn't already have if it's a first home purchase.

Be confident and be flexible. It can be an intimidating process and the bankers require a lot of documentation. When you think you've submitted everything, they will ask for more.

Maggie, Minneapolis

Why did you decide to buy? 

Honestly, I just didn’t want to pay rent anymore. It felt like a waste. And I decided pretty quickly to buy once I had that feeling. I had a realtor friend I knew and trusted, so that made it easy too. I have always loved houses, so I did have that advantage. I knew generally what “good bones” looked like, knew what was an easy fix and what was harder, and knew my main wants. My main factor was price (it was just me back then) and location. I wanted to be near public transit and a few neighborhood amenities.

What do you love about owning your own home? 

I love building equity. It really does make me feel financially stable. I love being able to bang out walls or paint without needing approval. And I love my neighborhood.

What advice would you give other women who are considering buying their first home?

Understand what you can truly afford. Don’t buy more just because. And I do think buying in the neighborhood you want, and updating the house is the best way to go. Also, understand how you truly live. Are you hosting a lot? Or having guests? Are you messy? If so, is an “open concept” really wise?

Barb, Apple Valley

Why did you decide to buy?

I lived in apartment for over 20 years and I wanted something I could call my own. And also have more space and decorate to my style of liking.

What do you love about owning your own home?

I love being able to make changes as I like. I like the privacy and not having people above or below me. I love to be able to have pets.

What advice would you give other women who are considering buying their first home? 

Make sure your finances are in order for the expenses each month. You never know what might come up and have to be replaced.

Megan, St. Louis Park

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Why did you decide to buy?

When moving back to the area, I chose to buy a home as my mortgage was actually going to be cheaper than rent while providing a nicer place than a rental. Also, I have a dog, and having a yard to let him out in is much easier for both of us!

What do you love about owning your own home?

I like the fact that I know I have an investment with the house versus a loss of money with the rent. Also, it is great having the extra space that an apartment does not provide.

What advice would you give other women who are considering buying their first home? 

When buying a house, women need to be sure they are okay with doing the things that come with a house - the yard work, maintenance, etc. It is a great investment if you are willing to put some time back into it, as well as a great feeling to know you have bought your own house!

 
 

Thank you Lisa, Michelle, Maggie, Barb and Megan for your willingness to share thoughts on ownership and pictures of your beautiful homes!

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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The Pre-Sale Home Inspection

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{UPDATE: Effective Jan. 14, 2021, City of Hopkins no longer requires home sellers to complete Truth-in-Housing evaluations prior to selling.}

If you're planning to list your home soon you most likely have a list of projects to complete before hitting the market. One thing you may be required to do, depending on your city and type of home, is a pre-sale inspection. In the Twin Cities metro, currently 12 municipalities require home sellers to do some type of inspection prior to listing a home for sale. These inspections are to be completed by a third-party professional, chosen from an approved list of evaluators in most cases. 

Pre-sale inspection reports are paid for by the home seller and must be made available to any potential buyer. In addition to a Seller's Disclosure (more on that here), they provide buyers with a bit more insight into the condition of the home prior to making an offer. Typically 1-2 hours in length, a pre-sale evaluation is like a mini buyer's inspection and should never be used as a substitute for a full inspection prior to purchase.

Be aware that some cities, like Minneapolis, may require repairs and follow-up re-inspections to comply. Others might not. Some may require only minimal fixes. For example, in St. Paul hard-wired smoke detectors must be present or installed to satisfy the Fire and Safety code, but repairing items marked "hazardous" is not required.

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What's a TISH?

Just another name for pre-sale inspection. A truth-in-sale-of-housing, or TISH evaluation, might also be called time-of-sale, point-of-sale or truth-in-housing, depending on the city.

If you're not sure what type of inspection, if any, is required, call your city offices to find out in advance of listing your home. Depending on the time of year and market activity, you may be able to schedule your inspection within a week or so. Reports may take 1-2 days to generate and are usually good for one year (check with your city to be sure.) Leave adequate time to address issues that may come up and to make repairs if need be. 

Below is a list of the 12 metro cities currently requiring a pre-sale inspection. Laws may change, so call your city to confirm before checking this off your to-do list.

Metro Cities Requiring Pre-sale Inspections

Click on the city name to link directly to city's pre-sale inspection requirements.

Bloomington

•Single Family
•Two Family
•Multiple Family (condo, townhouse, mobile home)

Golden Valley

•All properties, residential & commercial (sewer inspection)

Hopkins (Not required after Jan. 14, 2021)

•All 1-4 unit dwellings, including condos & townhouses

Maplewood

•All dwellings

Minneapolis

•Single Family
•Two Family
•First-time condo conversions

New Hope

•All dwellings

Richfield

•All dwellings

Robbinsdale

•Single Family
•Two Family
•Condos & townhouses

St. LoUis Park

•Single Family
•Two Family
•Condos, townhouses & co-ops

St. Paul

•Single Family
•Two Family
•Condos, townhouses & co-ops

South Saint Paul

•Single Family
•Two Family
•Multiple Family
•Mobile Homes

West Saint Paul

•All dwellings (sewer inspection)

 

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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What do all those listing terms mean?

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Like any industry, Real Estate maintains a language of its own, with shorthand jargon and specialized terms used daily by those in the biz. But lingo used by housing professionals can sometimes be confusing when you're shopping for homes. This list might help. Common terms found in home listings, explained in everyday English:

A (Active)

This means the property is on the market, available, and open for offers. Sellers may have received an offer but have not yet accepted it.

A,i (Active, Inspection)

Sellers have accepted an offer contingent on a buyer's inspection of their property. Depending on what's written in the offer, the whole process of inspecting and negotiating based on the results takes about 7-10 days.

A, r (Active, Subject to Statutory Rescission)

The sellers of a condo, townhouse or co-op have accepted an offer which is contingent on the buyers reviewing all association governing documents and financials. After receiving the final document, buyers have 10 days to review them. They can cancel the offer at anytime during this period, for any reason.

A, s (Active, Sale of Another Property)

The sellers have accepted an offer from people who need to sell a home in order to buy a new one. Their buyers are most likely not financially able to own two homes at once. Or, they are but have chosen not to. The listing is still on the market and open for other offers. Depending on what’s written in the offer, the first buyers will have a short time during which to make good on their offer, if they can.

A, o (Active, other)

A, o  means the sellers have accepted an offer with a contingency that could be anything other than Inspection or Statutory Rescission. For example, if it's a vacant lot and buyers want to get building plans approved by the city before committing, they would submit their offer contingent on the city approval.

P (Pending)

The sellers have accepted an offer and are set to close. This usually means the inspection period has passed and all other contingencies (except Financing) have been lifted.

T (TNAS)

This stands for Temporarily Not Available for Showing. It typically means the listing is active but sellers wish to make the property unavailable for private showings, for whatever reason. Maybe they have company staying with them or are making repairs or remodeling. It might also mean they've accepted an offer and are getting a buyer's inspection. In this case, agents are required to add an “i” after the TNAS signaling the inspection contingency.

If you are curious about a home with this status, ask your agent to contact the listing agent directly to get more information. Keep in mind sites like Zillow currently do not display property with TNAS status. These homes are only visible in the MLS database, accessible to subscribing real estate agents. 

Coming Soon

The Northstar MLS recently added a “Coming Soon” status for new listings. During this period at least one photo must be displayed, and homes cannot be shown (a hefty fine for agents who do.) Properties can remain in this status for up to 21 days after which they will automatically become “Active” and available for showings, as permitted by the sellers. The Active date should be visible next to the status bar.

This list represents terminology from one of Minnesota's regional MLSs (Multiple Listing Services). Other MLS databases across the state and country may have similar terms with slight variations. 

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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Can we take a look at that house? Open houses + private showings

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Finding a home often begins with browsing online and driving through neighborhoods to get a feel for what you want and what's out there. The next important step involves actually getting into a home. You can do that a couple of ways — through open houses and private showings.

Open Houses

If you tour a home at an open house it's important to understand that the agent holding the open will be representing the seller (or working on behalf of the seller's agent) so be careful about revealing too much if you’re seriously interested in the home. That agent will most likely pass along your comments directly to the seller. If you end up making an offer later, the revealed information could become detrimental in negotiations. Your price, terms and motivations should only be shared with an agent representing you as a client. (More on agent representation here.)

Also, you may be asked to sign in at an open house. In general, it's a good idea to just tell the seller's agent you're already working with another agent, if that's the case. (If you are working with me to find a home and are required to sign in, feel free to indicate your representation by including my name, phone number or email on the sign-in sheet.)

PRIVATE SHOWINGS

Another great way to see homes is through private showings with your real estate agent. You can set up single showings or multi-home showing tours to fit your schedule. Occasionally a 24-hour notice may be required to view a home, but I have often gotten clients in that day, or very close. If a home is vacant, a showing request might be automatically approved, requiring no prior notice. Showing tours can also be created when you want to view several houses at once. Setting aside a few hours to tour a half dozen houses is efficient and can be especially helpful for making comparisons among similar properties.

Once is often not enough. Second and third showings of homes are not at all uncommon. Clients sometimes want to return with family, friends or contractors to get second opinions, cost estimates on projects, feedback, etc. If there's time to do so (with no known competing buyers), it's a good idea to take a second look, just to be sure.

 

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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We decided to buy a house! How do we get started?

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Once you have made the decision to buy — whether you're downsizing, upgrading, relocating, or becoming first-time homeowners — you'll want to take some initial steps to smooth out the process: choose a realtor, get pre-approved and refine your search.

CHOOSE A REALTOR

Real estate agents advocate on behalf of their clients while guiding them through all steps of the home buying process. They can also be valuable resources for finding other licensed professionals including loan officers, inspectors, closers, contractors, and more. Realtors get paid for their services via commission, the majority of which has historically been paid by the seller.*

How do you choose a realtor? Start by asking trusted friends and family members. Most often people get connected through referrals. If your friend or family member had a good experience working with someone, you might too. Depending on your process, you may be spending a lot of time with your agent, so choose someone you like and trust. Communication is also key. Your agent should be conscientious about communicating and skilled at using multiple means for connecting with you and other professionals involved in the transaction.

A good agent will be on your side, listening to your needs and wants, advocating, and negotiating for you throughout the process. Choose someone you believe is doing so because they genuinely care about helping you find exactly what you want in the smoothest possible way.

GET PRE-APPROVED

If you want to make an offer on a house (and plan on financing it) you will need to get a pre-approval letter at the very least. Getting pre-approved differs from being pre-qualified in that it requires more than simply applying for a loan. Pre-approval involves an in-depth analysis of your financial background including credit history, employment verification, assets, etc. The process will provide you with a more realistic picture of what your payments and interest rate might be, and help determine in advance how much house you can afford.

Sellers will always favor pre-approved buyers who demonstrate their ability and intent for getting the actual mortgage. A strong pre-approval from a reputable lender is an important piece that will give you an advantage over competing buyers. It's best to get it done ahead of time to avoid a delay when submitting an offer and possibly losing out on the perfect home. 

REFINE YOUR SEARCH

An infinite number of factors can help determine your needs and wants when buying a home. Common considerations include things like schools, commute time, space, walkability, neighborhood preferences and of course price. You may also be deciding between a single-family home or condo/townhouse lifestyle. Make a list of what you're looking for — decide what you can't live without and what could be a deal breaker.

Once you've narrowed your focus and established parameters you can more efficiently make use of online tools to help with your search. Your agent can also create an automated search using your criteria, enabling you to receive email notifications of new MLS listings as soon as they become active in the database. This is an easy way for buyers to access the most accurate and up-to-date new listings, and especially useful when competing with other buyers in a hot seller's market. Of course you can perform your own searches on sites like Zillow, but be aware that listings you see may be inaccurate or out-dated. Check with your agent before getting your heart set on a house you find online. Next step after finding homes? Set up a tour!

* As the industry evolves payment for real estate services may change.

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

Heidi Swanson | Lynden Realty