Are You Thinking of Selling But You’re Afraid Of Ending Up Without A New Home to Buy?

Thinking of Selling

Are You Thinking of Selling But You’re Afraid Of
Ending Up Without A New Home to Buy?


My “Safe Move” Program Solves This and Removes ALL Worry!


WARNING: This may be the most important information that you will ever read
about selling your home for the most money and guaranteeing that you will find
a incredible new home that exceeds your expectations, in an uncertain market
that has other home sellers paralyzed and unable to move.

When you list your home with me, you AUTOMATICALLY receive the great benefits of my new and proprietary “Safe Move” program that outright eliminates the fear of selling too cheap and
guarantees that you will find the perfect next home. I have designed my one-off-
kind program to address the challenges facing sellers in this uncertain market
and completely obliterate them.


You Will Never Worry About Being “In Between” Homes….
or Worse Yet…Living With Relatives


Even though the market is a bit tight on inventory at the moment, I have a
proven way of beating other agents to the punch and securing the BEST homes
for my clients. And it works because I can bring ready-to-act purchasers who
already have their homes sold.


My “Safe Move” System Not Only PROMISES
to Get You Into a New Home
as Soon as You Sell Your Present Home…It GUARANTEES It!


In fact, in the unlikely event that you are unable to find the PERFECT home, at
the price that YO U want to pay, after we have your present home under contract
(which will happen very quickly with very little hassle, if any) you can literally
TEAR UP YOUR CONTRACT and stay right where you are…with no penalty or
cost to you whatsoever. Could there be a more fair or safe way to guarantee a
successful move?


All You Need to Do to Ensure that You Have a “Safe Move” is
Give Me a Quick Call


So, call my office at 763-350-7669 and we will schedule a time this week to list
your house and begin looking for your new one. The whole process is extremely
quick, efficient and hassle-free with me…unlike the way it is with “lesser” agents.


I’ll be in and out and have your home LISTED in 30 minutes or less.
CALL ME NOW AT 763-350-7669


Or visit http://www.VANMILLREALESTATE.com and…Start Packing!


*Certain conditions apply. You simply cannot beat my unique offer.

Don’t Forget to Budget for Closing Costs

Closing CostClosing Cost

When buying a home, it’s important to have a budget and make sure you plan ahead for certain home buying

When buying a home, it’s important to have a budget and make sure you plan ahead for certain homebuying expenses. Saving for a down payment is the main cost that comes to mind for many, but budgeting for the closing costs required to get a mortgage is just as important.

What Are Closing Costs?

According to Trulia:

“When you close on a home, a number of fees are due. They typically range from 2% to 5% of the total cost of the home, and can include title insurance, origination fees, underwriting fees, document preparation fees, and more.”

For example, for someone buying a $300,000 home, they could potentially have between $6,000 and $15,000 in closing fees. If you’re in the market for a home above this price range, your closing costs could be greater. As mentioned above, closing costs are typically between 2% and 5% of your purchase price.

Trulia gives more great advice, explaining:

“There will be lots of paperwork in front of you on closing day, and not enough time to read them all. Work closely with your real estate agent, lender, and attorney, if you have one, to get all the documents you need ahead of time.

The most important thing to read is the closing disclosure, which shows your loan terms, final closing costs, and any outstanding fees. You’ll get this form about three days before closing since, once you (the borrower) sign it, there’s a three-day waiting period before you can sign the mortgage loan docs. If you have any questions about the numbers or what any of the mortgage terms mean, this is the time to ask—your real estate agent is a great resource for getting you all the answers you need.”

Bottom Line

As home prices are rising and more buyers are finding themselves competing in bidding wars, it’s more important than ever to make sure your plan includes budgeting for closing costs. Let’s connect to be sure you have everything you need to land your dream home.

No Down VA Loans in Minnesota?

No Down VA Loans in Minnesota?

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VA Loans

 

What is a VA Loan?

A VA loan is a loan that is guaranteed by the Department of Veterans Affairs. These loans have a number of benefits, including a lower interest rate than conventional loans and a more flexible repayment schedule.

Who Qualifies for a VA Loan?

To qualify for a VA loan, you must meet certain requirements. You must be a veteran or your spouse must be a veteran. You must have served in the military during wartime. You must also have a good credit history.

How Much Can I Borrow?

You can borrow up to $417,000, but it’s recommended that you borrow less than this amount. The higher the amount you borrow, the lower the interest rate you’ll get. If you want to borrow more than \$417,000, you’ll have to pay a penalty fee.

What Are the Interest Rates?

The interest rate on a VA loan is based on the rate that the government charges banks. This rate changes frequently.

How Do I Get VA Loan Approved?

If you’re approved for a VA loan, you’ll receive an application form from the lender. You’ll fill out this form and send it to the lender along with all the other required documents. The lender will review your application and determine whether you qualify for a VA loan. If you do qualify, they’ll send you an approval letter.

What Are the Repayment Terms Pn A Va Loan?

The repayment terms on a VA loan are different from those of conventional loans. A conventional loan has a fixed interest rate. The repayment terms on a VA loan can vary. The payment may be based on the number of months until the loan is paid off or the total amount borrowed.

What Are Other VA Benefits?

Some lenders offer additional benefits with a VA loan. They might waive points or fees, provide a grace period before the loan begins to accrue interest, or make payments to a savings account for you. Some lenders also offer special programs to help veterans and their families buy homes.

Who do VA Loans Help?

VA Loans helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.

VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.

Do VA loans Offer Better rates?

VA loans offer better terms and interest rates than most other home loans. 100% financing — typically, there is no down payment required for a VA loan, as long as the purchase sales price of the home does not exceed the appraised value of the home. … There is no penalty for paying off the loan early.

What qualifies you for a VA loan? 

You may be eligible for a VA loan by meeting one or more of the following requirements:

  • You have served 90 consecutive days of active service during wartime, OR.
  • You have served 181 days of active service during peacetime, OR.
  • You have 6 years of service in the National Guard or Reserves, OR.

VA mortgage loans also come with minimum property requirements that can end up forcing home sellers to make many repairs. Because VA appraisals may increase their repair costs, home sellers sometimes refuse to accept purchase offers backed by the agency’s mortgages.

 

 

USDA Loan Programs /USDA Rural Zero Down Loans

$675,000
Single Family Home For Sale
Active
4
BEDS
3
TOTAL BATHS
3,186
SQFT
15780 56th Street
Saint Michael, MN 55376
Foster Lakeshore Acres Subdivision
Listing courtesy of Keller Williams Integrity NW
$425,000
Single Family Home For Sale
Pending
4
BEDS
2
TOTAL BATHS
2,208
SQFT
15704 52nd Court
Saint Michael, MN 55376
Crow River Acres Subdivision
Listing courtesy of Keller Williams Premier Realty Lake Minnetonka
Open House Sun, Aug 14, 3 PM UTC
$859,900
Single Family Home For Sale
Active
3
BEDS
3
TOTAL BATHS
3,377
SQFT
14970 50th Street
Saint Michael, MN 55376
Tributary Xing 2nd Add Subdivision
Listing courtesy of Coldwell Banker Realty
Open House Sun, Aug 14, 5 PM UTC
$900,000
Single Family Home For Sale
Active
5
BEDS
5
TOTAL BATHS
4,803
SQFT
4967 Otter Trail
Saint Michael, MN 55376
Tributary On Foster Lake Subdivision
Listing courtesy of Keller Williams Classic Rlty NW
$695,000
Single Family Home For Sale
Pending
5
BEDS
4
TOTAL BATHS
3,629
SQFT
4949 Otter Trail
Saint Michael, MN 55376
Tributary Xing 2nd Add Subdivision
Listing courtesy of Edina Realty, Inc.
New Listing - 4 weeks online
$490,000
Single Family Home For Sale
Active
3
BEDS
2
TOTAL BATHS
2,524
SQFT
5435 Quale Avenue
Saint Michael, MN 55376
Bourgeois Hills Subdivision
Listing courtesy of Edina Realty, Inc.
Open House Sun, Aug 14, 4 PM UTC
$719,900
Single Family Home For Sale
Active
5
BEDS
5
TOTAL BATHS
4,050
SQFT
14772 50th Street
Saint Michael, MN 55376
Tributary Crossing Subdivision
Listing courtesy of Keller Williams Classic Rlty NW
$1,300,000
Land For Sale
Active
34.62
ACRES
WRIGHT
COUNTY
Xxxxx 70th Street
Otsego, MN 55330
 
Listing courtesy of Good Move Realty
$495,000
Commercial For Sale
Pending
1.6
ACRES
WRIGHT
COUNTY
5340 Quam Avenue
Saint Michael, MN 55376
Crow River Indust Park Subdivision
Listing courtesy of Pro Flat Fee Realty LLC
$94,000
Land For Sale
Active
0.21
ACRES
WRIGHT
COUNTY
15341 71st St NE
Otsego, MN 55330
 
Listing courtesy of eHouse Realty, Inc
$578,000
Single Family Home For Sale
Pending
4
BEDS
4
TOTAL BATHS
2,755
SQFT
22970 Heather Ridge
Rogers, MN 55374
Heather Ridge Farm 1 Subdivision
Listing courtesy of Edina Realty, Inc.
$463,460
Single Family Home For Sale
Pending
3
BEDS
6
TOTAL BATHS
2,175
SQFT
15755 73rd Street
Otsego, MN 55330
Boulder Pass Subdivision
Listing courtesy of M/I Homes
$505,870
Single Family Home For Sale
Active
3
BEDS
3
TOTAL BATHS
2,154
SQFT
15615 73rd Street
Otsego, MN 55330
Boulder Pass Subdivision
Listing courtesy of M/I Homes
New Listing - 4 weeks online
$476,350
Single Family Home For Sale
Pending
3
BEDS
3
TOTAL BATHS
2,147
SQFT
15724 73rd Street
Otsego, MN 55330
Boulder Pass Subdivision
Listing courtesy of M/I Homes
$459,990
Single Family Home For Sale
Active
3
BEDS
3
TOTAL BATHS
1,976
SQFT
15589 73rd Street
Otsego, MN 55330
Boulder Pass Subdivision
Listing courtesy of M/I Homes
$479,990
Single Family Home For Sale
Active
3
BEDS
3
TOTAL BATHS
2,119
SQFT
15514 73rd Street
Otsego, MN 55330
Boulder Pass Subdivision
Listing courtesy of M/I Homes
$575,149
Single Family Home For Sale
Pending
4
BEDS
3
TOTAL BATHS
2,785
SQFT
15598 73rd Street
Otsego, MN 55330
Boulder Pass Subdivision
Listing courtesy of M/I Homes
$561,680
Single Family Home For Sale
Active
4
BEDS
3
TOTAL BATHS
2,645
SQFT
15627 73rd Street
Otsego, MN 55330
Boulder Pass Subdivision
Listing courtesy of M/I Homes
$568,750
Single Family Home For Sale
Active
5
BEDS
4
TOTAL BATHS
3,531
SQFT
15668 73rd Street
Otsego, MN 55330
Boulder Pass Subdivision
Listing courtesy of M/I Homes
$642,935
Single Family Home For Sale
Pending
5
BEDS
4
TOTAL BATHS
3,383
SQFT
15713 73rd Street
Otsego, MN 55330
Boulder Pass Subdivision
Listing courtesy of M/I Homes

Usda

What qualifies for a USDA loan?

Minimum Qualifications for USDA Loans

Ability to prove creditworthiness, typically with a credit score of at least 640. Stable and dependable income. … Adjusted household income is equal to or less than 115% of the area median income. The property serves as the primary residence and is located in a qualified rural area.

What does the USDA do?

We provide leadership on food, agriculture, natural resources, rural development, nutrition, and related issues based on public policy, the best available science, and effective management.

The Paperwork for (selling a house in 2022)

Paperwork For Selling A House

The Paperwork for selling a house

Buying and selling a home requires stacks and stacks of Paperwork you can’t just seal the deal and walk away with the handshake when you sell your house you’ll need all of these documents for a smooth transaction there are so many documents involved in selling your house at the end of the sale you’re trudging through up to 180 sheets of paperwork top real estate agent.

The Van Mill Group has sold over 78 percent more properties in North Metro than the average agent he recommends sellers know exactly what they’re getting into my clients appreciate that I try to prepare them for every step of what’s going to happen.

I talk to them about the fact that once they sell their home that is truly just baby step number one and there are many steps to go through to get successfully to the closing table so grab your favorite pen and big fancy folder here are all the Paperwork involved in selling your home first find the original sales contract from when you bought the house this outlines who you purchased the property from how much you bought it for and any disclosures that were made before the sale.

Appraisals

You’ll also want to have the appraisal report from when you purchased the home granted you’ll need a brand new appraisal in order for the buyer’s lender to approve the deal but that comes, later on, have your original appraisal on hand along with any Paperwork updates such as if you refinanced your home next if you’re selling before you pay off your current mortgage you’ll need to request a statement that shows your payoff amount the payoff amount is a total amount you’ll have to pay to satisfy the terms of your mortgage loan.

This includes any interest you owe up until the day you plan to pay your loan in full these numbers are necessary to calculate your home sale proceeds you’ll also need to provide the buyer with proof of your homeowner’s insurance information and the lists of all the claims on your home since you bought it this will show the buyer any damages and repairs made to the house since you’ve owned it plus it will give the buyer an idea of how much homeowners insurance will cost for the house.

HOA`s

For the homeowner’s association, you’ll need the following documents Articles of Incorporation bylaws rules and regulations homeowners dues account statement copies of the minutes from the association’s meetings the declaration of covenants, and the conditions and restrictions these are all of the key pieces of information the buyer will need to see before they buy your home and make sure you save all of your receipts for home maintenance and repairs since you’ve owned the home such as roof repairs gutter cleanings and new paint records of big projects that added value to your home like kitchen and bath remodel to have to they mitigate the capital tax you owe on your home sale.

Appliance Manuals

You’ll also need the manuals and warranties for appliances that come with the home such as washer/dryer refrigerator and dishwasher and buyers will also want to see the past utility bills so make sure you have at least a year worth of bills to show before you list your home for sale after you’ve organized all of the Paperwork to get your home listed.

Home Valuations

You’re ready to launch your home sale into action the first document you want to have handy is the Home Valuation your agent will prepare this for you when you’re ready to list your home and it’s imperative to have accurate information in order to list your home for the best price the listing agreement is important to have to refer back to it’s the contract between you and your real estate agent and the terms in this agreement serves as the foundation of your entire transaction.

Marketing Plans

Your marketing plan lays out how your agent will sell your home it includes showings open houses,social media marketing and all of the promotion involved in selling your home the seller’s net sheet is the last thing you’ll need to get your home on the market this shows how much you’ll pocket from your home sale after factoring in taxes agent commission mortgage and escrow fees now the stack is getting higher here are the documents you’ll need to have ready while your home is on the market.

Title Reports

The preliminary title report is a legal summary that tells you if there’s anything outstanding on your property such as taxes or recorded conditions in other words it’s a precautionary report mandatory disclosures are important to inform buyers of any hazards on the property such as lead-based paint asbestos toxic chemicals water damage or anything you’re aware of that could be hazardous if you got a pre-inspection on your home you’re legally obligated to disclose the report to buyers as well so add that onto your big pile of papers.

Disclosure statements

In Minnesota you’ll need to complete a Sellers disclosure statement in your own handwriting it describes the condition of the house and is intended to help buyers decide whether or not they want to move forward with the transaction another document that’s needed in the state of Minnesota is the Hazards report Such as lead base paint disclosure or an As-IS form.

This shows how prone your property is to hazards like floods fires earthquakes airports radon gaps and more you don’t want to surprise buyers at the house right on the Cali fault lines with those documents out of the way there are three documents that come into play once a buyer puts an offer on your home.

Purchase Agreements

The purchase agreement and counteroffer forms are the first steps to a buyers closing on it lays out an agreement between the buyer and seller that’s subject to change once the transaction moves forward next is the final purchase and sale agreement the buyer and sellers real estate agents and or attorneys draft up a contract that states the selling price of the home the terms of the purchase the earnest money deposit amount the closing date and any contingencies.

Contingencys

A contingency is a clause in your real estate contract that needs to be met before the deal closes in order to remove a contingency you’ll need a contingency removal form once you get through the documents for a buyer’s offer you’ll move on to the contract and closing documents first up is the home inspection report most buyers.

Inspection contingencys

Put a home inspection contingency in the contract which means they’ll arrange for an inspector to come  evaluate the house for safety and functional issues the buyer receives this report but you can request a copy from them same goes for the home appraisal which is usually a requirement for buyer’s financing their home with the mortgage the report will contain local comparable properties with photos and details of each property.

Appraised Values

Including the home being appraised the appraised value how the appraiser determined the value and what factors the appraiser took into consideration and lastly here are the final documents, you’ll need to close your home sale your most recent tax statement to calculate any outstanding property taxes you owe on your house the 1099s tax form which is necessary if you don’t qualify for the capital gains tax exclusion.

Capital Gains

If you’re a single person and you can make \$250,000 on your home sale or for a married people \$500,000 or more before you’ll need to fill out a 1099 s tax form for any profit that went over those amounts the closing statement shows how much money you’ll receive after the sale closes it accounts for closing costs taxes and other transaction fees the closing agent or title company will generate this Paperwork.

Deed

The deed for the house is the physical legal document that officially transfers ownership of the property from the seller to the buyer it includes the names of both parties involved in a detailed description of the property few the documents needed to sell a house are extensive and complicated to make it easier on yourself and get more money in your pocket work with an experienced real estate agent that way all you have to do is sign on the line find the best real estate agent in your area to help you with the documents needed to sell your house.

What not to fix when selling a home

What not to fix when selling a house 2022
What not to fix when selling a house 2022

It is overwhelming to try to figure out what you need to do to get a home ready for sale. Do I fix this, do I not fix that? Am I wasting my time and money? Will I get a good rate of return? How do I distinguish the difference?

The five things that you do not have to do when getting ready to sell your home.

So your rate of return on both money and time is not worth it. So I’m going to give you those five, along with some ideas of what you really need to do to make sure that you get the most for your home, even in this hot-selling market. So let’s get started here.

1. Don’t remodel your kitchen and bathrooms.

If you haven’t done it to enjoy while you’re living there, please don’t do it now. You’ve wanted to do it, now you think you’re going to do it for someone else. They may not like it. They may not like that you put white counters and white cabinets. They want gray and some other color. So only remodel a kitchen and bathroom if that’s something that you’ve wanted to do for the enjoyment of your home while you’ve lived there.

Now, some things you can do is paint it a nice neutral color. Change the hardware, change the knobs on the cabinets.

And clean it, thoroughly clean it. It needs to sparkle.

2. Don’t replace the flooring.

You may decide that you need to put tile. You’re going to remove the carpet, you have to install tile. But maybe a buyer wants wood, or bamboo, or something different on those floors. So unless you’ve done it for your enjoyment, don’t do it. Now, what I will say, is if your carpet is old and worn, and it just is not going to show well, we’ll take the carpet out.

Get builder-grade carpet, have it installed. It’ll look great. Doesn’t last a long time, but that’s okay. Because when you put carpet down it makes it so easy for a buyer if they decide to change the flooring, just to rip up the carpet, versus trying to get jackhammers to take out tile or the wood floors.

3. Don’t replace the roof.

If there are leaks, or it needs to be repaired, please repair it. That’s very important. But don’t replace it unless you want to do it for your enjoyment again. Because a new owner may not want the type of roof that you put in. You put in shingle, they may have wanted metal, or maybe they wanted tile. So if it’s a roof that’s the end of life and at least it’s not leaking, then give them a credit towards a new roof. In Minnesota, roofs are very important for winter protection.

4. Don’t fix beyond the value of the neighborhood you live in.

All the homes in your neighborhood have tile and carpet, and you decide to do Italian marble, you’re not going to get that rate of return for putting in that upgrade. Or you have this extravagant, beautiful landscaping, hopefully, that you put in while you were living there to enjoy. But don’t expect to get a big rate of return if everyone else in the neighborhood just has a couple of trees and very simple landscaping. So make sure that you stay with the trend of your neighborhood unless while you’re living there you’ve wanted to do these upgrades for your enjoyment.

5. Don’t fix or do a partial repair.

So for instance, you’re living in a home that probably the bathroom needs to be replaced or remodeled. And some of the tiles are awful. If it’s not in major areas where it’s going to have water intrusion, well don’t bother replacing them, let them see that this needs to be done. Let it be listed in the Multiple Listing Service at that. 

Because whatever the description of the home needs to match the condition of the home. If you do a partial repair, a buyer’s going to think that this is how the entire house is. If you identify that there is a problem with whatever room it is they’re much more likely just to accept a credit, and move on, and make you a good offer for your home.

So now let’s talk about some things you should do when you are selling your home. So the five items that are a good rate of return,

Paint

1. Inside and out. Paint puts a smile on your home when it gets its photos. But do something neutral. Don’t do these wild, trendy colors. Do what we sort of call a grayish. So something very neutral that anybody who moves their furniture in can do it. And it’s clean, it refreshes the whole home, which is wonderful.

Declutter

2. Get rid of things, make it look bigger.

Less is more.

Depersonalize

3. Get you out of the house. They don’t want to see your family, unless they’re nosy, as they’re looking through when they’re buying. But let them see their selves in the home for them to make a great offer.

Clean

4. Clean it as hard as you can. If it smells, I can’t sell it. But if it’s clean, sparkles, refreshing, that really compensates for a lot of things that still need to be done in the home.

 

Landscaping

5. Clean up and prune your landscaping. And also add mulch.

I hope these ideas help you Happy house hunting.

 

How does a Septic System work?

...The septic system consists of the septic tank, the distribution box, and the leach field. This is the actual septic tank. It’S a precast, concrete structure that a crane actually lifts into position, and this particular one is probably 750 to maybe 1,000-gallon capacity And what happens?

The waste water right out of the house comes directly into this tank.

It’S got these lids that allow you to inspect the inside of the tank and they also serve a very important purpose. Every three or four years. You need to have a company come that actually puts a pipe down in here and they pump out all of the solids that collect inside the septic tank.

This is the distribution box. What it does is the waste water from the septic tank comes through. This pipe goes into this little box and it goes out to the leach field through these four different pipes. This is the leach field and it looks a little weird because of all this concrete

It’s not really a normal one Check out. What’S behind me that roadway! Well, you know what This leach field is going to be under near the road that leads to the house, that’s under construction. What happens in the leach field is that the water comes through that distribution box.

How does a Septic System work?

It goes out into those four pipes and feeds into this leach field. The leach field consists of about a foot thick layer of sand and the waste water percolates down through that sand.

It gets cleansed of all the bacteria and pathogens and then it can flow back into the water table. It’S that simple! That’S how septic systems work!

Read More: What’s a Septic System?

Minnesota Housing Market Forecast 2022

..development

I have a lot to share with you, including an update regarding pending home sales in Minnesota This is a leading indicator of what to expect with our housing market in the next one to two months. In addition, I have an update for you regarding mortgage interest rates, because those have been increasing greatly lately as of last week. They just posted this a couple of days ago or a few days ago, September 29th to be exact.  The pending home contract signings increased 8% in August from July after two consecutive months of declines. The pending home sale index decreased in the last two months. But more recently it increased by eight percent. So we’re going to talk about why this is I’m going to be diving into a lot of this data here. In addition, contract signings Increased in all regions from one month ago, led by the Midwest and the south. In contrast, though, contract signings, which again are pending home sales, were 8.3 lower this time compared to last year. So that’s a no-brainer because the housing market was absolutely on steroids last year, but I have some data to share with you regarding how this compares to 2019 and 2018, which are more normal, real estate markets.

 

So they talk about a rising inventory and moderating price conditions are bringing buyers back to the market according to Lawrence Yun who’s, NAR’s. Chief economist, he also said. Affordability, however, remains challenging as home price gains are roughly three times wage growth. I feel that housing affordability is getting worse and worse, because home prices are increasing greatly, but not at the same rate that wage growth.Inventory and moderating price conditions here in just a little bit there`s such an imbalance in the market, meaning an imbalance of affordability is unsustainable over the long term. According to Yun, I agree 100% with him on that. You can’t have home prices increase 20 every single year and not have wage growth increase at the same rate all right. So let me give you a breakdown on a regional level here, the index increased eight percent compared to from July to August of this year, but each region varied pretty greatly, though so, on a month-to-month basis. The Midwest increased with the most by 10.4 percent and the west increased by 7.2. In addition, the south increased by  86%, northeast only increased by 4.6% so about half the rate in the south....

So the index has kind of been all over the place this year, but we’re still at higher level compared to February all the way through February of last year, the index was just very, very high because we had such high housing demand last year. So compared to now or any really reading over the past year, we’re way higher compared to 2019 or 2018.. I know you guys always ask you, know how’s this all compared to those years, because comparing to 2021 is like comparing apples to oranges right. The housing market was on fire, but let’s go back to Yun’s statement here that we have rising inventory and moderating price conditions. That’s bringing back home buyers to the market because, after all, the contract signs rose eight percent from July to August of this year right. This is the housing inventory, and this is over the past year and the source of this. So this is according to the national association of realtors, we look at housing inventory compared to one year ago, in August 2021, we had a 1.5 million now we’re down to 1.3 million approximately. We have been increasing the housing inventory so far this year. So right in January of this year about a million in February as well, but ever since February or ever since march, housing inventory has been increasing greatly. So it did decrease in august, but not by very much. It was 1.3 million houses available for sale, and this. These are existing houses for sale and then in August it was 1.3 Million, so a difference of only 20,000 of a decrease. When you compare this to January – let’s say: 1 million. Now it’s 1.3 million, that’s a 30% increase of housing inventory. What that means for home buyers.  If you have 30 percent more houses available for sale in the u.s as a home buyer, you have more options. That’s really what we need. We actually need this number to increase quite a bit more than this, but it’s a step in the right direction.

 

In regards to home prices, home prices have been decreasing for two straight months in the united states for the median home price median sold price, and that was not mentioned in NARS report right. I didn’t mention that in my video, though, in any case we’re looking at the median sales price of existing houses in the u.s, it was at 303, 000 in January 2021 and they’ve been increasing greatly every single month, except for the past two months. So one thing i want to point out is that yeah home prices reach all-time record highs of 362 800in June of 2021 right. I did mention that home prices have decreased for two straight months, but look at the price decreases. They didn’t like fall off a cliff, it’s 363 000, basically in June, and then now we’re at 356 000 What’s that a difference of what six thousand dollars, so it’s not a big decrease, but it is a step in the right direction if you’re looking for, if you’re a home buyer looking for prices to decrease, want to see. If this could this trend continues. Another thing that a lot of you guys point out is that, even though it home prices decrease for two straight months, we’re still at very elevated levels right, so three hundred and fifty six thousand seven hundred dollars in august compare that to January of this year. I think it’s about almost a 20 percent increase in just eight months so and prices have increased greatly..

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They release it on their website really good resource, so they just released this about a week ago last week and they stated that the seasonally adjusted purchase index uh decreased one percent from one week earlier. What this basically means is that from one week ago, they have a index for purchases and also refinances, so this overall market composite index composed of purchase applications for loans and also refinance applications for loans, so uh it decreased by one percent from one week ago. Big deal right, but it was 12 percent lower from the same week, one week earlier. In any case, Joel Khan is the MBA’s associate vice president of economic and industry forecasting. He said the following. I thought it was a really good quote here, because i’m going to dive into this about why mortgage applications may be decreasing and, more importantly, why are mortgage interest rates increasing greatly as well increased optimism about the strength of the economy pushed treasury yields higher following last Week’S meeting – that’s the federal reserve’s meeting mortgage rates and response rose across all loan types, with a benchmark, 30-year fixed rate reaching its highest level since July of 2021.

The increase in rates mostly later in the week, led to a decrease in both purchase and refinance applications. So this is going to be really interesting to track this, because if interest rates continue to go up, one would assume that’s going to decrease the demand for housing.  So let’s go over this because they say that treasury yields have been going going up and they absolutely have. So i want to show you on how they have been affected by this meeting or the fed announcing they’re going to be tapering their purchases and mortgage-backed securities and potentially may do a interest rate increase towards the tail end of next year. So this is the 10-year us treasury note, which is tied very loosely to mortgage interest rates. So when the yield on the 10-year us treasury no increases mortgage, interest rates could increase as well and then, in contrast, when it decreases, rates could decrease as well. But it’s not tied directly, it’s indirectly loosely tied to it. So any case. The u.s treasury note, as you can see here this is year to date. When you look at this the uh in January this year, we were under one percent for the us, a treasury yield right. It increased to almost two percent. I think it was like. 1.75 percent was like the highest. It’s reached um so far this year, and that was in late march and then it would decrease quite a bit, and this is when mortgage interest rates dipped as well, but more recently it’s been increasing, especially when you look at a one month trend, for example, take A look at that 1.3 um last week on the 22nd of this of September.

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Now it’s been increasing quite a bit right, so 1.3% now we’re at 1%-
5 percent so have a look at this. The  date of when the of fed  announced that they’re going to be tapering their mortgage-backed security purchases and may increase federal funds rate when the when they announce they may increase the federal funds rate um potentially late. Next year, that was in September 21st to September 22nd, that was around that time period and so have a look at what happened around then right. So when they announced it, it was 1% and when they announced it, that’s when the U.S. treasury yield absolutely skyrocketed. So it’s going to be interesting to see how this will affect mortgage interest rates. But when you have a look at the mortgage interest rates, let’s just have a look at them over the past one month, so the 21st 22nd mortgage interest rates, according to the mortgage news daily, was around three percent for the average 30-year fixed-rate mortgage right. But ever since they fed and made that announcement, the rates have absolutely skyrocketed right. So we’re at three percent increased to three point, almost three point: two percent in about a week they have been decreasing more recently. What to see this is trend continues, though, um, because it’s going to be very interesting to see how this affect our housing market if it increases greatly.

 

One thing i did want to point out, though, is that the mortgage interest rates have been all over the place. They tend to change and fluctuate every single day right, so they decrease um to the lowest levels of this year about 2.75% in late January of this year, but interest rates increased to almost 3 percent. But what happened to home prices during this time period in march of this year, home prices still increased to record levels, so an increase of almost  75 percent from 2.75 to 3.5% it didn’t have an effect on housing demand. It didn’t appear to have an effect on housing demand, so i would assume that we’d have to have a pretty large increase in order for it to negatively impact our housing market. I’M not a fortune teller though so, let’s see what happens . This is according to Freddie mac they announced this last week, but they had to they had a good quote here from Sam  who’s, Freddie, MAC’s, chief economist, he said mortgage rates rose across all loan types this week. As a 10-year us, treasury yield reached its highest point since June many factors led to this increase, including the federal reserve, communicating that it will taper its support of the capital markets, the broadening of inflation and emergency energy supply shortages, which compound other labor and material shortages.So again, they’re talking about the support of capital markets, that’s the the purchases of mortgage-backed securities and other bonds, and he also says that we expect mortgage rates to continue to rise modestly, which will likely have an impact on home prices, causing them to moderate.

 

What month to sell your home?

Have you considered selling your home and wondered what is the best time of year to sell a house ?

What month to sell your home? or what is the worst month to sell a house the answer is actually quite simple the best time or month to sell house is whenever it is right for your individual circumstances and goals houses sell all year long.

We do typically have a real estate cycle with peaks and valleys but most areas in Anoka and Sherburne county are pretty much sold out and have been for the past few years right now we have very very little inventory and the houses that come on sell very quickly as we progress through the fall and winter

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The unsold inventory levels will continue to drop we will get some new inventory on the market but it is usually not the time frame where we see a lot of inventory coming on these low inventory situations.

With strong buyer demand due to very low interest rates create multiple offers and a quick response market the buyers that are out buying during the fall and winter are serious buyers who usually have to move take a look at this chart this is our typical real estate cycle in Minnesota with covid our cycle shifted.

A little bit to the right this year and our peak happened a little bit later but our market is still really strong and is expected to stay strong through next year we typically have lower inventory in the fall and winter which is definitely the case right now across all price ranges we started to get more inventory.

Starting in late February and it continues to climb and usually peaks where we have the most amount of inventory on the market and houses for sale in June most people strive to get their homes listed in the spring and summer when our weather is better and their yards look nicer the number of listings start to taper off.

Near the end of summer and they get to their lowest amount in the late fall and early winter and then we start all over again this cycle is also similar for buying patterns but oftentimes we have more buyers than houses or that has been the case in the last few years so what does this mean for you as a seller.

In the fall and winter you have less competition in the springtime you’re going to have more houses similar to yours on the market so buyers will have more to choose from and more competition for your house check out my video on sellers closing costs so you can get an idea of the cost to sell a house we are seeing our highest prices and our lowest interest rates right now.

If you’re considering selling give me a call we can create the best strategy for you to reach your goals there’s also a form in the comments below that you can fill out if that’s easier for you thank you so much for Reading and have a great day you.

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What is a HOME APPRAISAL? (What to do when things go wrong)

htmlF IMG 61326dea00156First of all, What is a HOME APPRAISAL?

Appraisals are basically the bank getting a little verification that the price you’re trying to pay for the home, and the condition of the home are acceptable to them. It’s basically a risk analysis for the bank to make sure that they’re not over-lending on a property, which could risk foreclosure. And they’re making sure that the home itself, isn’t going to be a safety hazard for the homeowner or  cause issues in the future. So what do you need to know that could go wrong during the appraisal process? There’s the only a couple of things and they’re fairly rare, but I just want to point out to dispel any fears you might have.

Number one is  the price could come in low. So let’s say you’re paying $350,000 for a home. And if that price comes back on the appraisal, for an appraised value of, let’s say $340,000, you’re then short by about $10,000.

...What is a HOME APPRAISAL?

Now the seller, first of all, is not obligated to lower the price, from the $350K to the $340K, and agree to sell it for the lower amount. But on the flip side, the buyer’s also not obligated to pay more than the appraised value and the lender won’t lend based on the $350K, if the appraised value is $340K.

So if the seller is not obligated to come down, and the buyer doesn’t have to come up, there are really two options that we could explore. Ideally, we`d  want to meet in the middle. So if the buyer’s has  an extra $5,000 in cash, they can bring that $5,000 to closing. And then the seller would come down on their sale price by five grand, we would then sell it for $345K with the buyer agreeing to pay five grand over, which the bank would then accept.

Typically, however, in addition to the buyer’s down payment and the are other closing costs, buyers often don’t have enough money to bring on top, to bring that $5,000 extra to closing.

So it is a pretty common scenario, that the seller will have to reduce the price, to the appraised value. Again, they’re not obligated to do this, but if they want the home to sell, which they always do, they really are often not going to have any other choice. Number two is  regarding the condition of a property. And that’s why at the beginning of the transaction when I’m working with a seller, we have a lot of conversations about the types of financing that we’re looking at. Coming in from the buyers, FHA is a lot more difficult, more likely to have issues.

They have a higher standard for different things.

Conventional loans, for example, are much easier, a little more lax on the condition of the property has to be in. So we’ll have that conversation in advance, any help. But let’s say an issue does come up, a few common things that could come up with the home. If it’s an FHA, for example, if there are no smoke alarms and CO detectors in the appropriate places, that could become an issue.

If there’s a cracked pane of glass, for example, it doesn’t really affect things. We’ve probably already addressed it in the purchase agreement, but that could be an issue for the banks as well.

What is a HOME APPRAISAL?

Or there could be more major things like if recently, actually, I just had probably the biggest appraisal issues I’ve had come up. The bank required that a railing get put on a deck, in that scenario the deck was only two or three feet off the ground, but in the criteria of the lender, it’s the same difference to them as if it was 20 feet off the ground. And so in that case, they required that a railing get put on the deck, prior to closing.

So then how do we resolve the issue? It’s just like with my first point, we’re going to try and get the buyer and seller to meet to a middle ground. Ultimately, neither one of them is causing the appraisal issue, it’s the bank’s standard that they’ve come up with. And so we need to find a middle ground that works for both parties. With the railing that I had recently, in that scenario, the seller basically paid for the new railing, if the buyer was willing to do the work, to put the railing in.

...What is a HOME APPRAISAL?

So it was a great scenario.

The buyers were handy, the sellers weren’t, but they had the money, they were willing to do it. So we can come to a middle ground with something like that. That’s what we would do with a major issue. Typically, you know, most common is a smoke alarm or something minor like that.

Typically the sellers will just deal with it. And then once the issues are taken care of, we’ll then have the appraisal back out. And they’ll confirm that everything’s done, and we’ll go clear to close. Again, I want to remind you, it’s actually pretty rare that we have any real major appraisal issues that come up, but it is a concern for some people.