Multiple offers in a down real estate market? What’s up with that?

foreclosure

Multiple offers in a down real estate market do not make sense to inexperienced buyers.  When real estate was flying off the shelves in the mid 2000′s we were all accustomed to multiple offers and strong competition for the homes we hoped to purchase.  We expected competition, and worked hard on our strategies to beat them.  But in a market where homes lanquish on the market and buyers are able to get “insane house deals” why would anyone pay full listing price or God forbid over the asking price?

Best Deals have been above the list price

Having sold homes for over 25 years, and selling over 100 homes per year for the past 15+ years, I would tell you that I have seen a lot of real estate deals and some of the very best deals my buyers have received have been purchased above the listing price.   With the high volume of foreclosed homes on the market, it is not uncommon for a bank owned property to be listed well below the true value of the home.   Time and again we will see a new listing come to market, and buyers swarm the property like piranha’s after fresh meat.

Highest and Best offers

As each buyer takes a crack at the property, the listing agent sends out a proclamation of “Highest and Best Offers Due” with some random deadline and this home sale has suddenly turned into a sealed bid auction.   Each buyer then measures the value of the property against their desire for a deal and submits their best offer.

What to Offer?

When competing for a property in a multiple offer situation, I recommend that buyers balance the price they would feel comfortable purchasing a home for compared to a price they are ok letting it slip away.   When a buyer finds out they were outbid by $1,000 I don’t want to hear them say “I would have paid more.”  No regrets in this business.   You also don’t want to get caught up in the competition and submit an offer that exceeds the true value of the home or your budget.

Still an opportunity for a great deal

Not every multiple offer is an opportunity, but some are.  Knowing how to navigate the multiple offer process is a skill that is not possessed by all Realtors, but an expertise that can prove invaluable.  It is important to know how to properly identify the opportunities and evaluate the true value of a property.   There are many additional factors that go into a contract which can make your offer more or less appealing in a multiple offer situation, so make sure that you have the right agent on your side of the transaction when looking for a home.

5453 Pompano Drive #D – Minnetonka, MN

5453 Pompano Drive ,Unit #D, Minnetonka, MN 55343 (MLS # 4108954)

(all data current as of 2/22/2012)
Price $114,900
Beds 2
Baths 1 full, 1 three-quarter
Home size 1,340 sq ft
Lot Size n/a
Beautifully appointed 2BR/2BA upper lvl condo w/wooded views! Kitchen w/granite, hardwood flrs, & new appliances. Living Rm w/fireplace walks out to deck, Master w/private bath, 2nd BR & updated full bath. New carpet, new H2O heater, fixtures & much more!

Property Type(s): Residential, (CC) Manor/Village

Last Updated n/a Tract n/a
Year Built 1984 Community n/a
Garage Spaces n/a County Hennepin
Total Parking n/a

Price History

Prior to Jan 17, '12 $119,900
Jan 17, '12 - Today $114,900

Schools

School District 270 - Hopkins

Additional Details

Association Fee 230.00 Garage Stalls 1
Property Identification Number 3511722110654 Living Room Dimensionse 22x13
Dining Room Dimensionse 10x9 Family Room Dimensionse 12x10
Kitchen Dimensionsex. 1 11x10 Bedroom 1 Dimensions ex 14x12
Bedroom 2 Dimensions ex 13x12 Tax Amount 1855
Tax Year 2011

Features

Air Conditioning Central
Amenities - Unit Deck, Hardwood Floors, Kitchen Window, Natural Woodwork, Washer/Dryer Hookup
Appliances Dishwasher, Dryer, Microwave, Range, Refrigerator, Washer, Water Softener - Rented
Basement None
Bath Description 3/4 Master, Main Floor Full Bath, Private Master
Bedroom 1 Level Main
Bedroom 2 Level Main
Construction Status Previously Owned
Dining Room Description Breakfast Area, Informal Dining Room
Dining Room Level Main
Exterior Brick/Stone, Wood
Family Room Characterist Family Room, Main Level
Family Room Level Main
Fencing None
Fireplace Characteristic Living Room, Wood Burning
Fuel Natural Gas
Handicap Accessible None
Heating Forced Air
Homestead Yes
Kitchen Level Main
Living Room Level Main
Lot Description City Bus (w/in 6 blks), Irregular Lot, Tree Coverage - Medium
Parking Characteristics Attached Garage, Driveway - Asphalt, Garage Door Opener
Pool None
PropType SF
Restrictions/Covenants Mandatory Owners Assoc, Pets - Number Limit, Pets-Cats Allowed, Pets-Dogs Allowed
Road Frontage City, Curbs, Paved Streets
Roof Age 8 Years or Less, Asphalt Shingles, Pitched
roomtype Dining Room, Family Room, First (1st) Bedroom, Fourth (4th) Bedroom, Kitchen, Living Room, Second (2nd) Bedroom, Third (3rd) Bedroom
Sewer City Sewer/Connected
Special Search All Living Facilities on One Lev, Main Floor Bedroom, Main Floor Laundry
Style (CC) Manor/Village
transactionType For Sale
Water City Water/Connected
Zoning Residential-Multi-Family

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with RE/MAX Results Broker reciprocity icon

(view all details for MLS #4108954)

Showing properties 1 - 10 of 34. See more Agent ID 502000611 .
(all data current as of 2/22/2012)

  1. 5 beds, 2 full, 2 part baths
    Home size: 3,250 sq ft
    Lot size: 13,068 sq ft
    Year built: 2000
    Listed with RE/MAX Results
    Broker reciprocity icon
  2. 4 beds, 1 full, 1 part baths
    Home size: 1,828 sq ft
    Lot size: 23,958 sq ft
    Year built: 1988
    Listed with RE/MAX Results
    Broker reciprocity icon
  3. 5 beds, 2 full baths
    Home size: 3,296 sq ft
    Lot size: 1.08 ac
    Year built: 1994
    Listed with RE/MAX Results
    Broker reciprocity icon
  4. 5 beds, 2 full, 2 part baths
    Home size: 2,584 sq ft
    Lot size: 16,552 sq ft
    Year built: 1999
    Listed with RE/MAX Results
    Broker reciprocity icon
  5. 4 beds, 1 full, 2 part baths
    Home size: 2,684 sq ft
    Lot size: 11,325 sq ft
    Year built: 1985
    Listed with RE/MAX Results
    Broker reciprocity icon
  6. 3 beds, 1 full, 2 part baths
    Home size: 2,684 sq ft
    Lot size: 6,534 sq ft
    Year built: 1940
    Listed with RE/MAX Results
    Broker reciprocity icon
  7. 4 beds, 1 full, 1 part baths
    Home size: 1,784 sq ft
    Lot size: 27,007 sq ft
    Year built: 1950
    Listed with RE/MAX Results
    Broker reciprocity icon
  8. 3 beds, 2 full baths
    Home size: 2,096 sq ft
    Lot size: 12,196 sq ft
    Year built: 2001
    Listed with RE/MAX Results
    Broker reciprocity icon
  9. 3 beds, 1 full, 1 part baths
    Home size: 1,704 sq ft
    Lot size: 8,276 sq ft
    Year built: 1964
    Listed with RE/MAX Results
    Broker reciprocity icon
  10. 3 beds, 1 full, 1 part baths
    Home size: 1,836 sq ft
    Lot size: 20,037 sq ft
    Year built: 1982
    Listed with RE/MAX Results
    Broker reciprocity icon

Listing information deemed reliable but not guaranteed. Read full disclaimer.

11315 Hillcrest Drive N , Champlin, MN 55316

We're sorry, but we couldn't find MLS # 4083805 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

1301 85th Avenue N , Brooklyn Park, MN 55444

1301 85th Avenue N, Brooklyn Park, MN 55444 (MLS # 4101320)

(all data current as of 2/22/2012)
Price $129,900
Beds 4
Baths 2 full
Home size 2,040 sq ft
Lot Size 8,712 sq ft
Not a foreclosure or Short Sale! Quick Possession possible! Price to sell-under tax market value! 4BR/2BA home on treed lot has fenced yard and shed, hardwood flrs, ceramic tile, vaulted living rm w/fireplace, family rm w/dry bar, whirlpool bath.

Property Type(s): Residential, (SF) Split Entry (Bi-Level)

Last Updated n/a Tract Kirkwood Addn
Year Built 1985 Community n/a
Garage Spaces n/a County Hennepin
Total Parking n/a

Price History

Prior to Jan 20, '12 $149,900
Jan 20, '12 - Feb 9, '12 $139,900
Feb 9, '12 - Today $129,900

Schools

School District 11 - Anoka-Hennepin

Additional Details

Association Fee 0.00 Garage Stalls 2
Property Identification Number 2411921220091 Living Room Dimensionse 17x16
Dining Room Dimensionse 12x9 Family Room Dimensionse 17x15
Kitchen Dimensionsex. 1 12x11 Bedroom 1 Dimensions ex 15x13
Bedroom 2 Dimensions ex 13x9 Bedroom 3 Dimensions ex 12x12
Bedroom 4 Dimensions ex 13x12 Tax Amount 2805
Tax Year 2011

Features

Air Conditioning Central
Amenities - Unit Ceiling Fan(s), Deck, Hardwood Floors, Kitchen Window, Natural Woodwork, Tiled Floors, Vaulted Ceiling(s), Washer/Dryer Hookup
Appliances Dishwasher, Exhaust Fan/Hood, Range, Refrigerator
Basement Day/Lookout Windows, Drain Tiled, Finished (Livable), Full, Sump Pump
Bath Description Full Basement, Main Floor Full Bath, Whirlpool
Bedroom 1 Level Upper
Bedroom 2 Level Upper
Bedroom 3 Level Lower
Bedroom 4 Level Lower
Construction Status Previously Owned
Dining Room Description Separate/Formal Dining Room
Dining Room Level Upper
Exterior Fiber Board
Family Room Characterist Family Room, Lower Level
Family Room Level Lower
Fencing Chain Link
Fireplace Characteristic Gas Burning, Living Room
Fuel Natural Gas
Handicap Accessible None
Heating Forced Air
Homestead No
Kitchen Level Upper
Living Room Level Upper
Lot Description City Bus (w/in 6 blks), Tree Coverage - Medium
Parking Characteristics Attached Garage, Driveway - Asphalt, Garage Door Opener
Pool None
PropType SF
Road Frontage City, Paved Streets
Roof Asphalt Shingles, Pitched
roomtype Dining Room, Family Room, First (1st) Bedroom, Fourth (4th) Bedroom, Kitchen, Living Room, Second (2nd) Bedroom, Third (3rd) Bedroom
Sewer City Sewer/Connected
Style (SF) Split Entry (Bi-Level)
transactionType For Sale
Water City Water/Connected
Zoning Residential-Single

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with RE/MAX Results Broker reciprocity icon

(view all details for MLS #4101320)

2007 Glenhaven Lane N , Brooklyn Park, MN 55443

2007 Glenhaven Lane N, Brooklyn Park, MN 55443 (MLS # 4078676)

(all data current as of 2/22/2012)
Price $159,900
Beds 2
Baths 1 full, 1 three-quarter
Home size 1,336 sq ft
Lot Size n/a
Nothing for you to do, except move in! This absolutely stunning 2BR/2BA townhome is in the heart of Edinburgh! Vaulted ceilings, skylights, ceramic tile, Sun Room w/door to private patio w/shade trees, exquisite Master Ste w/walkin-in closet & 3/4 bath.

Property Type(s): Residential, (TH) Quad/4 Corners

Last Updated n/a Tract Glenhaven of Edinburgh
Year Built 1990 Community n/a
Garage Spaces n/a County Hennepin
Total Parking n/a

Schools

School District 11 - Anoka-Hennepin

Additional Details

Association Fee 126.00 Garage Stalls 2
Property Identification Number 1411921130018 Living Room Dimensionse 15x15
Extra Room 2 Dimensions 10x7 Dining Room Dimensionse 10x10
Kitchen Dimensionsex. 1 13x9 Bedroom 1 Dimensions ex 17x11
Bedroom 2 Dimensions ex 11x10 Extra Room 1 Dimensions 17x10
Tax Amount 2240 Tax Year 2011

Features

Air Conditioning Central
Amenities - Shared Common Garden, Lawn Sprinkler
Amenities - Unit Ceiling Fan(s), Natural Woodwork, Patio, Skylight, Sun Room, Tiled Floors, Vaulted Ceiling(s), Walk-In Closet, Washer/Dryer Hookup
Appliances Dishwasher, Disposal, Dryer, Microwave, Range, Refrigerator, Washer, Water Softener - Owned
Basement None
Bath Description 3/4 Master, Main Floor Full Bath, Private Master
Bedroom 1 Level Main
Bedroom 2 Level Main
Construction Status Previously Owned
Dining Room Description Informal Dining Room, Living/Dining Room
Dining Room Level Main
Exterior Brick/Stone, Metal/Vinyl
Extra Room 1 Description Sun Room
Extra Room 1 Level Main
Extra Room 2 Description Laundry
Extra Room 2 Level Main
Family Room Characterist Great Room, Main Level
Fireplace Characteristic Gas Burning, Living Room
Fuel Natural Gas
Handicap Accessible None
Heating Forced Air
Homestead Yes
Kitchen Level Main
Living Room Level Main
Lot Description Tree Coverage - Medium
Parking Characteristics Attached Garage, Driveway - Asphalt, Garage Door Opener
PropType SF
Restrictions/Covenants Mandatory Owners Assoc, Pets - Number Limit, Pets - Weight/Height Limit, Pets-Cats Allowed, Pets-Dogs Allowed, Rentals not Permitted, Seniors - 55+
Road Frontage City, No Outlet/Dead End, Paved Streets
Roof Asphalt Shingles, Pitched
roomtype Dining Room, Family Room, First (1st) Bedroom, Fourth (4th) Bedroom, Kitchen, Living Room, Second (2nd) Bedroom, Third (3rd) Bedroom
Sewer City Sewer/Connected
Special Search All Living Facilities on One Lev, Main Floor Bedroom, Main Floor Laundry
Style (TH) Quad/4 Corners
transactionType For Sale
Water City Water/Connected
Zoning Residential-Single

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with RE/MAX Results Broker reciprocity icon

(view all details for MLS #4078676)

13896 Ivywood Street NW , Andover

13896 Ivywood Street NW, Andover, MN 55304 (MLS # 4092210)

(all data current as of 2/22/2012)
Price $359,900
Beds 6
Baths 2 full, 1 three-quarter, 1 half
Home size 4,206 sq ft
Lot Size 21,344 sq ft
Stunning 6BR, 4BA 2-sty home w/over 3500 fin sq ft, Mstr Ste w/Whrpl Bath, 4BR on one lvl, Laundry Rm doubles as a Hobby Rm, Gourmet Ktch, Main flr Family Rm, Sauna Rm, Maple hrdwd flrs, Granite, 6-panels drs, & Sauna. Beautiful corner lot w/fenced yard!

Property Type(s): Residential, (SF) Two Stories

Last Updated n/a Tract n/a
Year Built 1990 Community n/a
Garage Spaces n/a County Anoka
Total Parking n/a

Schools

School District 11 - Anoka-Hennepin

Additional Details

Association Fee 0.00 Garage Stalls 3
Property Identification Number 333224230013 Living Room Dimensionse 16x14
Extra Room 2 Dimensions 14x12 Extra Room 3 Dimensions 18x11
Extra Room 4 Dimensions 29x18 Extra Room 5 Dimensions 11x9
Extra Room 6 Dimensions 24x16 Dining Room Dimensionse 12x10
Family Room Dimensionse 18x12 Kitchen Dimensionsex. 1 30x19
Bedroom 1 Dimensions ex 18x13 Bedroom 2 Dimensions ex 14x10
Bedroom 3 Dimensions ex 14x9 Bedroom 4 Dimensions ex 12x11
Extra Room 1 Dimensions 19x14 Tax Amount 4384
Tax Year 2011

Features

Air Conditioning Central
Amenities - Unit Ceiling Fan(s), Deck, Hardwood Floors, In-Ground Sprinkler, Kitchen Window, Natural Woodwork, Porch, Sauna, Tiled Floors, Vaulted Ceiling(s), Walk-In Closet, Washer/Dryer Hookup
Appliances Air-To-Air Exchanger, Cooktop, Dishwasher, Disposal, Exhaust Fan/Hood, Microwave, Refrigerator, Wall Oven
Basement Day/Lookout Windows, Egress Windows, Finished (Livable), Full
Bath Description 3/4 Basement, Basement, Full Master, Main Floor 1/2 Bath, Private Master, Separate Tub & Shower, Upper Level Bath, Whirlpool
Bedroom 1 Level Upper
Bedroom 2 Level Upper
Bedroom 3 Level Upper
Bedroom 4 Level Upper
Construction Status Previously Owned
Dining Room Description Breakfast Area, Eat In Kitchen, Separate/Formal Dining Room
Dining Room Level Main
Exterior Brick/Stone, Shakes, Wood
Extra Room 1 Description Fifth (5th) Bedroom
Extra Room 1 Level Lower
Extra Room 2 Description Sixth (6th) Bedroom
Extra Room 2 Level Lower
Extra Room 3 Description Laundry
Extra Room 3 Level Upper
Extra Room 4 Description Recreation Room
Extra Room 4 Level Lower
Extra Room 5 Description Den
Extra Room 5 Level Main
Extra Room 6 Description Deck
Extra Room 6 Level Main
Family Room Characterist 2 or More, Entertainment/Media Center, Family Room, Lower Level, Main Level
Family Room Level Main
Fencing Chain Link, Partial, Wood
Fireplace Characteristic Family Room, Wood Burning
Fuel Natural Gas
Handicap Accessible None
Heating Forced Air
Homestead No
Kitchen Level Main
Living Room Level Main
Lot Description Corner Lot, Tree Coverage - Medium
Parking Characteristics Attached Garage, Driveway - Asphalt, Garage Door Opener
PropType SF
Road Frontage City, No Outlet/Dead End, Paved Streets
Roof Age 8 Years or Less, Asphalt Shingles, Pitched
roomtype Deck, Den, Dining Room, Family Room, Fifth (5th) Bedroom, First (1st) Bedroom, Fourth (4th) Bedroom, Kitchen, Laundry, Living Room, Recreation Room, Second (2nd) Bedroom, Sixth (6th) Bedroom, Third (3rd) Bedroom
Sewer City Sewer/Connected
Special Search 2nd Floor Laundry, 3 BR on One Level, 4 BR on One Level, All Living Facilities on One Lev
Style (SF) Two Stories
transactionType For Sale
Water City Water/Connected
Zoning Residential-Single

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with RE/MAX Results Broker reciprocity icon

(view all details for MLS #4092210)

US Treasury to Sell off Mortgage Backed Securities

us-treasury-3

During the mortgage crisis, the US Department of the Treasury purchased approximately 144 billion dollars worth of mortgage backed securities to help stabalize the mortgage markets. Mortgage Backed Security prices dropped 50 basis points this morning on the news that the Treasury Department is going to systematically sell-off it’s holdings of MBS’s purchased in 2008 and 2009. It’s anticipated that the Treasury will sell approximately $10 billion per month, subject to market conditions. Stated reasons of why to sell now are due to the “stabilizing economy and market conditions”.

Traders are thinking that it could be due to US debt limit levels as well, but that has certainly not been a stated reason.
Just the anticipation of the added forthcoming supply pushed traders to a sell mode sending mortgage backed security pricing down & rates up and adds to the continued volatilty that we have seen over the past several weeks.

This will pressure mortgage rates up.  Why? because of supply and demand. Adding more securities to the market increases the supply an din order to “sell” the new mortgage backed securities they will need to offer a higher return to attract investors.

What does this mean for you? If you are considering a move, I would do it sooner than later. Rates are still below 5.0% and now is the time buy and to take advantage of these rates!

FHA increasing Mortgage Insurance Premium

FHA-premium-change-201104

FHA mortgages that are assigned FHA case numbers or after April 18, 2011 will have the Annual Mortgage Insurance Premium — often referred to as the Monthly MIP — increase by 25 basis points. Currently, the Annual MIP is .90%; this increase means that the Annual MIP will be 1.15% of the base mortgage amount.

This is important to know because it will increase the homeowner’s monthly payment.
A few conditions:
• The Upfront Mortgage Insurance Premium (UFMIP) remains 1.00%.
• The Annual MIP increase only applies to FHA loans. Fannie Mae and Freddie Mac conventional loans do not have this increase.
• This increase applies to loan terms more than 15 years in length and when the loan-to-value (LTV) ratio is greater than 95%; the Annual MIP is lower when the loan-to-value ratio is less than 95% or when clients take out a 15-year loan term (call me for details).
• HUD does not allow case numbers to be pulled prior to receipt of a fully executed purchase agreement and application.

So, what does this mean to a typical buyer. If you are buying a home with a $200,000 FHA mortgage, your montly mortgage insurance premium will go up about $42 per month. If you are buying a home with a $100,000 FHA mortgage your monthly mortgage insurance premium will go up about $21 per month. To avoid the higher MIP, you would have to have a signed purchase agreement and have your lender obtain an FHA case number prior to April 18, 2011.

If you have questions about this, or want help avoiding the increased MIP, please contact a member of the Perkins Team with RE/MAX Results at 763-591-6066 or Perkins@SuburbanHomes.com

Liens Placed on Properties will be Reduced

tax-lien
Since the start of the recession, tax liens have risen more than 60% making it difficult for individuals to obtain affordable housing and jobs. This month, the IRS announced the number of liens placed on properties  owned by delinquent tax payers will be significantly reduced, making it easier to get them withdrawn.  A tax lien can also affect a homeowners credit scored and their ability to sell their property.
The IRS will raise the thresholds from $5,000 to $10,000 owed back taxes. In addition,  taxpayers who make payment arrangements with the IRS will be able to have their lien withdrawn.  The IRS also announced they have broadened their “Offer in Compromise”  program which allows taxpayers to negotiate a tax reduction. In order to qualify, an individual must demonstrate  that they have exhausted all available resources (Taxpayers with annual incomes up to $100,000 can now participate). For further information, please contact an IRS office or website.

Jobs and Homeownership ~ You can’t have one without the other

money-graphics-2008_872033a

Good jobs enable people to achieve the American Dream of homeownership. Everytime a house is built, bought or sold jobs are created, lots of them…right here at home.
Home sales in the United Estates generate more than 2.5 million private sector jobs in an average year. For every two homes sold, a job is created. Every home purchased produces up to $60,000 into the economy over time for furniture, home improvements and related items. Housing accounts for more than 15% of the Gross Domestic Product, making it a key driver in our national economy. Housing has led this country out of 6 of the last eight recessions.
America needs jobs. Housing creates jobs. This is one of the many reasons home ownership matters to people, to communities and to our country. (National Association of Realtors supporting Homeownership) For more information visit HouseLogic.com

Tax Season is Here ~ Review your Homeowner Tax Advantages

tax-refund1
One of the advantages of owning a home is that it can reduce the amount of income tax you pay every year.
With tax season here, prepare all your documentation in advance to factor in all your tax advantages.  Here is a list of benefits for homeowners:
  • Home Buyer tax credits:  You are entitled to a tax credit of up to $8,000 if you purchased your first home before April 30, 2010. Anyone  who owned and home and sold it to purchase another before April 30, 2010 is eligible for a federal tax credit of up to $6,500.
  • Loan fee deductions: Certain requirements need to be met to qualify for prepaid interest deductions when purchasing or refinancing a property. However, you may deduct points, origination fees and loan discount fees, even if the seller paid these for you.
  • Property tax deductions: In addition to deducting the property taxes you pay each year, you are entitled to deduct the taxes you paid at the closing table in the year you purchased a home.
  • Mortgage interest deduction: You may deduct the amount of interest including late charges you pay on your mortgage and home equity loans. If your down payment was less than 20% you may also deduct private mortgage insurance premiums as interest expenses.
  • Selling your home costs: You may deduct the costs related to the sale of your home (in the year you sold it), such as real estate commissions, title insurance, legal fees, advertising, administrative costs and inspection fees. This includes decorating or repair costs incurred in the 90 days before the sale of your home.
  • The gain on you home: The government allows you up to $250,000 (double for married couples) of profit on the sale of your home tax free. However, this does not apply to rental property or second homes. You are also allowed to subtract any amounts you spend on improvements, and in 2010 you can receive tax credits for making energy saving upgrades to your home. Money invested for routine maintenance doesn’t count. 
         Remember….. Consult with your tax professional about tax laws to be sure your are following the rules.

Check out the Minneapolis Housing Fair on February 26, 2011

Housing_Fair

FREE and Open to the Public!

This event will take place on February 26 from 10 AM to 3 PM. The Housing Fair is centrally located in South Minneapolis at South High School.

There will be almost 100 vendors to answer your questions and advice on home remodeling, basement finishing, kitchen and bath transformation, landscaping plus woodcraft for kids! In addition everyone will have the opportunity to connect with a broad range of community experts. Click here for directions

Fannie Mae Launches WAYSHOME Interactive Video Tool to Help Struggling Homeowners

Avoid_Foreclosure_REpage
In an effort to connect with homeowners across the country affected by a variety of hardships  during this challenging economy phase, Fannie Mae has launched WaysHome, a free multi-media tool designed to educate homeowners about their options to avoid foreclosure. Homeowners have a significantly better chance of finding a solution by maintaining proactive working with their Mortgage Company and using consumer tools to make educated decisions about their properties. WaysHome addresses a range of options homeowners can utilize to avoid foreclosure that include repayment plans, forbearances, modifications, deeds-in-lieu, and short sales. For more information, visit www.KnowYourOptions.com

HAFA – Home Affordable Foreclosure Alternatives Program

HAFA
Keeping families in their homes is a top priority for REALTORS®. Unfortunately, it is not always possible to meet this goal. While there are loan modification and other programs that can help families, not everyone will qualify. For many families who are at risk of losing their home through foreclosure, a program from the Treasury Department may be able to help you.
 I n February 2009, the Obama Administration introduced the Making Home Affordable Program — a plan to stabilize the housing market and help struggling homeowners stay in their homes.  One of the possible ways to help families stay in their homes is to modify mortgages to make them more affordable through a program called the Home Affordable Modification Program or HAMP.  While many families have received help through HAMP, far too many won’t be able to keep their home even with a loan modification. 
For these families, the Treasury Department has established a short sales program called the Home Affordable Foreclosure Alternatives Program or HAFA. HAFA is designed to streamline short sales by providing a uniform process and standard forms, as well as incentives for families and their mortgage servicers to complete the process. It offers homeowners who sell their homes under HAFA $3,000 to help cover their moving costs. HAFA may be able to help you through the difficult process of selling your home and moving to another home.
 Benefits of HAFA
  • HAFA streamlines the short sales and DIL processes to make it easier for you to work with the servicer.
  • You receive a check for $3,000 at closing to help with your moving costs.
  • You will be fully released from future liability for your first mortgage debt (no cash contribution, promissory note or deficiency judgment is allowed). Also, any junior lien holder who accepts a HAFA incentive must also release you from future liability.
 HAFA Elgibility
  • The property must be your primary residence.
  • The first lien (your first loan on your home) must have been originated before January 1, 2009.
  • The mortgage must be delinquent or default must be reasonably foreseeable.
  • The current unpaid principal balance may not be more than $729,750 (there are higher limits for 2- to 4-unit dwellings).
  • Your total monthly payment must exceed 31% of your gross income.
Even if you meet these threshold requirements, the servicer must consider your particular circumstances. Not everyone will qualify. Sometimes the owner of the mortgage has rules that mean you or your home may not be eligible. That’s why it is so important to work closely with the servicer.
Fore more information on short sales, HAFA, and avoiding short sales I recommend that you visit www.AllForeclosureAnswers.com

Feeling Financially Squeezed?

Lenders Primed for Short Sales in 2011

Short sales are another option for homeowners struggling with unaffordable mortgage payments. In fact, lenders’ losses due to foreclosure are projected to increase at record rates in 2011, giving them more reason to pursue short sales. Today’s article in the Star Tribune noted that a record number of preforeclosure notices were sent out in 2010, setting us up for another year with a significant number of homeowners battling foreclosure.  It’s common sense that lenders will be looking toward the short sale solution. Even though they are accepting less than is owed on the property, they lose far less than in a foreclosure sale. 
It may be a surprise to many that lenders actually want to work out a solution that benefits all parties. Oftentimes, the lender is seen as the villain in the situation. I’ve found that the lenders want to avoid foreclosure just as much as homeowners.   Homeowers that are feeling financially squeezed can find free information on short sales at www.AllForeclosureAnswers.com You will find a  downloadable report that talks more about working with your lender, and details all the foreclosure alternatives available to you.

Mortgage Requirements

Several factors go into a mortgage companies determination as to whether they will lend you money, and how much.  As you begin the process of buying a home, it is imperative that you understand loan procedures and the factors that determine loan approval. This post gives you an overview of what lenders are looking for when reviewing your credit report and considering your for a mortgage.
What is your FICO?
A FICO score is a credit score developed by Fair Isaac & Company to help lenders determine the risk involved in lending money to any person applying for a loan. It is widely accepted by lenders as one of the most important components helping determine eligibility as well as specific amounts, rates and terms that can be offered. FICO scores range from 300-850. The higher your score, the less risk involved in lending to you. There are approximately 30 factors that influence your credit rating. Some of these factors, such as your payment history, weigh more heavily on eligibility than others. Every factor’s importance varies by person and can change individually as your credit history lengthens. Also, keep in mind your score can change daily as new credit is established or debt is paid off. All factors can be grouped into 5 main categories.
Payment History
Do you make your payments on time? Since this determines approximately 35% of your score, it is certainly in your best interest to make all payments on time! Your payment history includes credit cards, car payments, mortgages, student loans and other loan types. Other public records on file, such as a bankruptcy, will be calculated in this group as well. If you have been late on payments, information such as how recently these payments were made and how much time elapsed between the due date and pay date will also factor into your score.
Outstanding Debt
How much debt do you have? All outstanding balances for credit cards, car loans, mortgages, etc. will determine about 30% of your score. How many of these accounts have balances? For example, if you can possible pay down significantly or pay off credit card debt, you’ll be in much better shape during loan approval. Eliminating some avenues of credit can demonstrate your willingness and ability to responsibly pay back new loans.
Credit History
How long have you been establishing your credit? Specifically, how long have your current accounts been opened and how long as it been since you used each of them? This usually determines approximately 15% of your score. If no credit history exists, you should begin by establishing credit accounts and be sure to keep them spotless. The less history that exists, the less the loan amount you’ll likely be able to obtain.
Pursuit of New Credit
Each time you apply for credit, there is an inquiry into your current credit score. If you recently applied for a VISA card, Nordstrom account and car loan, you may want to hold off applying for a home loan for a few months. Each inquiry may slightly reduce your FICO score and may portray you as someone overindulging in credit. This usually accounts for approximately 10% of your total score.
Types of Credit in Use
The number of accounts (such as ATM cards, car loans, credit cards) you have determines approximately 10% of your final score.
Once your bank is aware of your FICO score they may or may not choose to share this information with you. Assuming they do share your score with you, it is important to remember the higher the score, the more likely you are to obtain a loan. Also, a higher score directly translates to lower interest rates. Over time with home loans, lower interest rates can play a significant role in the total amount you SAVE!
Other Factors That Determine Loan Approval
Now, a great FICO score will not be the only determining factor in loan approval. Some additional factors that figure into the approval process include the following:
Income
Your current income will be a significant determining factor in loan approval. Pay stubs for the previous two months as well as W-2 forms for the previous year will be requested to help determine your ability to repay the loan amount.
Employment History
Your employment history can tell a lender much about your stability. If you’re constantly switching jobs, it could raise a red flag.
Down Payment
Being able to provide a down payment can be extremely useful in the loan approval process. It means the amount borrowed will be less than the total cost to purchase the home. In some cases, depending on the amount of the down payment, your monthly payments can significantly drop.
I know that sounds like a lot of information.  Please allow me to guide you through this process and make it easy for you.  I am here to help you.  Jon Perkins 763-591-6066 Jon@SuburbanHomes.com

City of Plymouth

Plymouth was named Money magazine’s number one Best Place to Live in 2008 for cities with populations of 50,000 to 300,000.
Location, Location, Location
Many major highways run through or are close to Plymouth, making it readily accessible to all within the metropolitan area. Interstate 494 runs through Plymouth as does Hwy. 55. Hwy. 169 is on the city’s eastern border and I-394 is within four miles from the center of Plymouth. Plymouth is about 12 miles northwest of downtown Minneapolis.
Natural Amenities
Plymouth residents also enjoy beautiful natural amenities, including more than a half a dozen sizable water bodies. Medicine Lake, the second largest lake in Hennepin County is located in Plymouth. It is a magnet for anglers and boaters.
Plymouth voters have gone to the polls twice to authorize the City of Plymouth to issue bonds to buy open space for preservation and parks.
Jobs
In addition to being a popular place to live, Plymouth is also the choice for many businesses. The city is home to a thriving commercial-industrial base, consisting of nearly 50,000 jobs.
Population
While Plymouth’s growth is slowing, the community continues to see population increases. The city’s current population is 71,930. Plymouth has 28,568 households. The average household size is 2.46 persons. These are the most current estimates provided by the Metropolitan Council, a regional planning agency. The estimates were issued in May 2010 and reflect estimates as of April 1, 2009.

History of Maple Grove

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The town of Maple Grove is located in the north central part of Hennepin County. At one time, it was only inhabited by Winnebago Indians who were moved from Wisconsin to Maple Grove by the Federal Government because “no one lived there”. That all changed in 1851 when Louis Gervais and Pierre Bottineau arrived and staked their claims. W.E. Evans, Harvey Abel, Patrick Defer and O. R. Champlin also settled in Maple Grove, all prior to 1855. They were allowed to buy their claims at the fair market price and could not be forced out by land speculators.
Early Schools
Schools were an important part of the community. Originally, classes were taught in the home of P.B. Newton and taught by Mrs. Newton. The first building used as a schoolhouse was a vacant dwelling from which Delos Hawkins taught in the summer of 1858. In the late 1850s or early 1860s, the first school building was built. It was located on the southwest corner of Territorial Road and Ranchview Lane. It was known as Maple Grove school, or District 42.
In 1887, a new school building was built and still stands. It was moved back from the road in 1923 and a basement was added. It was used as a private residence until it was purchased by the Osseo Alcoholics Anonymous in the 1960s. They are still using the site.
The Eagle Lake School (District 129) still stands today and is used as a private residence. It was rebuilt in 1933 after the original wooden structure was destroyed by a fire in 1932.
Weaver Lake School (District 44) has also been remodeled into a private residence. It is located across from the Weaver Lake Cemetery on 89th Avenue North. The school was closed in 1953.
The Fish Lake School (District 46) is located at East Fish Lake Road and 73rd Avenue North. It too has been converted into a private residence.
Hennessey Hill School (District 45) was originally located on the banks of Elm Creek south of the bridge on County Road 10. The first school was supposed to have been a log building. Later, a new frame structure was built on the same site. The final structure sits on the hill above the creek and the cemetery and is east of the original site.
Elm Creek School (District 100) was located just west of the old town hall. The first school was sold and moved to another site. A new school was built on the same site, but was damaged by fire in about 1915. Classes were held temporarily in the town hall while the school was restored. In 1939, the school was damaged by a tornado and was repaired once again. In 1953, the school was closed, sold and converted into a private residence. In 1966, another tornado tore the roof off of the structure. The Village of Maple Grove purchased the building and turned it into a city office building. In 1975, the building was razed by the City, when the new City hall was built.
District 101 was located on the northeast corner of 101st Avenue and State Highway 101. It was used as a school until November, 1952, when it was destroyed by fire.
City Government
 Town meetings were held in private residences from 1858 until 1863, when the first town hall was purchased. In 1877, the town supervisors ordered the construction of a new town hall and sold the original structure to the highest bidder for $23.00. The new building served as the town hall until 1939, when it was leveled by a tornado. The third town hall was constructed and still stands today, being used as a community building. The town board, consisting of three members, governed Maple Grove until 1954, when the town became incorporated into a village. In 1974 Maple Grove became a city. A new town hall was constructed on a site just north of the original town hall. The first city council meeting was held in the new building on August 4th, 1975.
Early Businesses
Scattered throughout Maple Grove were a number of small businesses. There were creameries, sawmills and stores. The township also had three dance halls and two horse racing tracks.
Sawmills were an important part of this rural community. Maple Grove had two that we know of. The first was located on Elm Creek, just north of County Road 30 and run by Dan Hawkins. The second was located just north of 85th Avenue North on Rice Lake and was run by Con Meyer. There were several general stores in Maple Grove. Grambert’s was located at County Road 30 and State Highway 101. It was built in 1929 or 1930 and purchased years later by Willie Bredenberg. It was then renamed Bredenberg’s Store. It was then sold and remodeled into Edie’s Country Store. The building was torn down in 2004.
There were a couple of stores on Territorial Road. There was the Mummah store at the southeast corner of Territorial Road and Ranchview Lane. The building was eventually destroyed by fire. The other store on Territorial Road was west of the Mummah’s store and was once a garage converted into a store. There was another general store, located on the northeast corner of 85th Avenue North and Rice Lake Road; it was torn down sometime in the 1940’s.
A train depot, cheese factory and a rail siding completed the commercial center that once existed along Territorial Road, once the most traveled road in Minnesota. The corner of the 85th Avenue North and Rice Lake Road also had several businesses. Along with the Maple Leaf Store, there was the Blacksmith shop and the Maple Leaf Creamery.
Population Growth
 By the late 1950s, the suburban sprawl had reached Maple Grove. The first growth was around the lakes. Then came I-94 and the population started growing again. The population in 1880 was 1,155. In 1950, the population had increased to 1,778. In 1990, the population was 38,756 and by the end of 2005, the population in Maple Grove was over 55,000 and still growing!
Maple Grove Today
 Maple Grove is one of the fastest growing communities in the metro area. The City fathers decided that a “downtown” area was needed. Today, you can see Minnesota’s first Life Style Center where you can enjoy shopping, dining and entertainment.

First Steps to Selling a Home

Thinking of selling your home?

There is a wealth of information online for buyers, but that’s not the case for sellers. We have been working with sellers in the area since 1985 and are familiar with the subjects sellers want to know. Throughout our years of experience we have listened to our clients about what they feel is important. We have designed our seller services to meet the needs of a seller — frequent and honest communication, the supply of up-to-date and pertinent information about the market and feedback from showings, as well as the use of tested and proven marketing plan. Not only that, we have cultivated a network of other successful Realtors around the country that assist our clients in selling their homes in other areas in order to relocate to the Twin Cities.

How long will it take to sell your home?

Every home is unique and every seller’s situation is different. Amenities, area, condition, and pricing all come into play as well as a host of other variables. Though it is impossible to know for sure how long your home will be on the market, careful evaluation of these factors can supply a realistic estimate.
A market analysis is the best place to start. Even if you’re not sure when you plan to move, we can assist you in determining a range of value, what you can do to get your home ready for sale, and evaluate your needs for your next home. Part of our market analysis is taking close look at the market for your particular type of home including: how many comparable homes are available, what price similar homes are selling for, the seasonal factors relating to your home’s sale, and so forth.

What was the sale price of the home down the street?

As a homeowner, it is a good idea to keep an eye on property values in your neighborhood. We offer a free service called My Street. It’s a program we have developed, originally for our past clients, that allows you to keep track of real estate market activity on the street that you live. All we ask is that you give us an interview to list your home when, or if, you decide to sell. The information about homes on your street is delivered to your email. Sign up today - it’s free!
  • Are you willing to move twice? If you put your home on the market and it sells before you find a home you like and close on it, is moving into temporary housing a realistic option for you?
  • What about “bridge” or “swing” financing? If you put your home on the market, then find a home, are you eligible and willing to commit to a short-term loan that would allow you to purchase the next home before your current home sells?
  • Do you have special needs in a home? Are you looking for a unique property or are you flexible about what features and amenities your next home needs to have? Keep in mind, the more specific requirements you have about your next home, the longer it could take to find it.
  • Do you know how much you will net from the sale of your home? Will the sale of your current home be supplying you with money that will allow you to purchase your next home? If your home does not sell for what you had initially envisioned, will that compromise your plans for buying your next home?
These are all issues that your Perkins Team agent can help you sort through. We have had an abundance of experience working with clients in a variety of situations. We usually suggest getting a market analysis of your current home and contacting your mortgage banker (contact us for our recommendations) to explore your financing options. Armed with all the facts, the course of action is much easier to plan. We’d love to interview with you for a chance to win your trust and your business.

First Time Home Buyer Info

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Quality Service
The Perkins Team is familiar with the needs of a first time homebuyer. Looking at the process for the first time, it can seem daunting. That is why it is important to establish a good working relationship with a Realtor you trust. We have been working with buyers in this area for the past 17 years. Technology has allowed us to serve our buyers better by giving them fast, up to the minute information. However, we believe that no matter how technologically advanced an agent is, it all comes back to service. We pride ourselves in providing the best of both worlds.
We hope that you will choose to work with one of the Perkins Team agents. Here are some steps to get you started:
Find an agent
Don’t be afraid to ask questions, and make sure that you select an agent that makes you feel comfortable. Ask your agent about Buyer Agency to make sure you understand how your Realtor can best represent your interests. Once you have found the home for you, your agent will help you negotiate the purchase agreement and guide you through the closing process
Get pre-approved
Starting to look for a home before finding out your financing options is a lot like putting the cart before the horse. If you have never looked at getting approved for a mortgage, you may qualify for more or less than you expected. Any time that you spent looking at homes that do not fall into you range of affordability would have been wasted. Your Realtor can recommend several loan officers that they have worked with that will have loan programs that meet your needs.
Sign up for the Buyer Instant Notification Program
This program will save time and give you the best idea of what your money can buy. See the details of the program above. When you sign up for the Buyer Instant Notification program:
· You will find out about new listings as soon as you come on the market
· You will not waste time or money driving around looking for available properties
· You will not have to guess what property prices are
· You will not have to call on yard signs
· You will not have to scan the newspaper and wonder what properties really look like
· And most importantly, you will not miss out on any listing that might meet your needs!
Sound valuable?
Sign up to have listings that meet the criteria you set emailed to you by clicking our logo on the upper right hand corner of the screen. Then send us an email with what features and amenities are important to you.

For more information about Buying your First Home, click here

 

Search for a home

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Intuitive map search with extensive property data makes finding your next home simple, easy and fun
Click on the map below to begin your search, or choose the Search Active Listings tab above

“I thought the seller paid the title fees?”

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In January 2010, RESPA (Real Estate Settlement Procedures Act) mandated changes to the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement (HUD-1) so consumers could better understand and compare fees for Title Services. Title services are now placed in a “bucket” in block 4 of the GFE and quoted to the buyer early in the lending process.
The Minnesota Association of Realtor’s (MNAR) previous purchase agreement (pre-September 2010) had language which required the seller to pay some of the costs included in block 4 of the GFE (specifically, title evidence); the remainder of the title exam and title insurance fees had typically been funded by the buyer.
Since the buyer is the party who shops for title services and is able to make a value judgment as to the services being quoted by different vendors offering the services contained in block 4 of the GFE, the MNAR’s Forms Committee felt it would be easier and more market oriented if we modified the form so buyers would be responsible for paying the fees being quoted to them.
This change also corrects a market inefficiency whereby some title service providers would decrease one fee and increase another in order to secure business. The RESPA change was focused on making sure consumers understood what they were being charged in relation to the services being provided by identifying the total title service cost in one “lump sum” bucket. By making the buyer responsible for the fees they are being quoted in block 4 of the GFE, the buyer can make educated decisions as to the cost and value of the various service providers. Keeping those fees placed in the buyer’s “bucket” on the HUD-1 as charges that are ultimately paid by buyer (unless negotiated or agreed to be paid by seller) increases the transparency in the transaction and helps preserve the objective the change in the HUD-1 was designed to achieve.
In the end, a buyer can choose to have the seller contribute to their closing costs, choose to lower the property price or do any combination of things to best satisfy their needs in the real estate negotiations. The change in title language within our purchase agreement is a point from which parties can negotiate, but also provides a default position if they choose not to further negotiate. It is not a requirement, nor are our forms required to be used in residential real estate transactions. The title fees, thanks to RESPA changes, are no longer vague, misconstrued or unknown by the consuming public. Buyers will receive a firm price in their GFE that cannot vary by more than a specific amount. Armed with that knowledge, the buyer can structure the purchase agreement in a way that best satisfies their situation and open the negotiations so all parties know within a very small window what the final closing costs will be.

Mortgage Rates & Trends: Mortgage Blog

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Next year is not likely to be a good one for the housing market.  The reasons for this are multifold.  In a post yesterday I discussed what I see as an inevitable decline in home values in the coming year.  In this post I want to discuss what I see as another 2011 inevitability: an increase in foreclosure activity.
According to data provider RealtyTrac, foreclosure activity was down in November.  There were 262,000 foreclosure notices issued, which is down 21 percent from the month prior and down 14 percent from the previous year.  In fact, this was the first time since February 2009 that foreclosure notices dropped below 300,000.  On the face of it, this appears to be a good thing.  In reality, the decrease can be directly attributed to foreclosure moratoriums issued by major lenders due to the incredibly sloppy paperwork that resulted in the whole robo-signing fiasco that is yet unresolved.  The decrease in foreclosure activity simply amounts to a stay of execution for many Americans who are in dire financial straights.

Reform of Fannie, Freddie unlikely

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Reform of Fannie, Freddie unlikely despite House Republican push – TheHill.com.

Republicans are unlikely to fix Fannie Mae and Freddie Mac this year, despite reform’s place high on the House GOP’s agenda, mortgage industry experts say.
The effort to reform Fannie and Freddie, which back the vast majority of the nation’s mortgages, is simply too large to tackle quickly, housing experts say.
In addition, the continued fragile state of the housing market makes it difficult for lawmakers to navigate a substantial exit for Fannie and Freddie, despite tough rhetoric from Republicans for more than two years. Finally, a divided government and scars over past housing debates add doubts to whether anything will happen in 2011.
“There can’t be a magic silver-bullet solution that happens in 2011,” predicted Paul Leonard, vice president of government affairs for the Housing Policy Council, which is part of the Financial Services Roundtable. “It’ll have to be the start of the big solution.”
The data relating to real estate for sale on this web site comes in part from the Broker ReciprocitySM Program of the Regional Multiple Listing Service of Minnesota, Inc. All real estate listings are marked with the Broker ReciprocitySM logo, and detailed information about them includes the name of the listing brokers.

Information deemed reliable but not guaranteed.

Copyright 2012 Regional Multiple Listing Service of Minnesota, Inc. All rights reserved.

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