SuburbanHomes.com

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

Jon Perkins — Thu, 29 Dec 2011 21:28:15 +0000

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

Jon Perkins — Thu, 29 Dec 2011 03:21:20 +0000

We're sorry, but we couldn't find MLS # 4108954 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

Jon Perkins — Thu, 08 Dec 2011 03:21:19 +0000

Showing properties 1 - 10 of 24. See more Agent ID 502000611 .
(all data current as of 5/18/2012)

$174,900 : 20624 Rush Meadow Lane, Corcoran

3 beds, 1 full, 1 part baths

Home size: 1,796 sq ft

Lot size: 1.57 ac

Year built: 1981

Listed with RE/MAX Results
$219,900 : 2537 Edinbrook Terrace, Brooklyn Park

5 beds, 2 full, 2 part baths

Home size: 2,128 sq ft

Lot size: 14,810 sqft

Year built: 1996

Listed with RE/MAX Results
$189,900 : 3808 83rd Avenue N, Brooklyn Park

4 beds, 1 full, 2 part baths

Home size: 2,840 sq ft

Lot size: 12,196 sqft

Year built: 1974

Listed with RE/MAX Results
$149,900 : 8990 Sawgrass Glen, Maple Grove

2 beds, 1 full, 1 part baths

Home size: 1,402 sq ft

Year built: 1999

Listed with RE/MAX Results
$154,900 : 5411 7th Street NE, Fridley

3 beds, 1 full bath

Home size: 1,356 sq ft

Lot size: 11,325 sqft

Year built: 1960

Listed with RE/MAX Results
$199,850 : 1112 Lorraine Court, Carver

3 beds, 1 full, 1 part baths

Home size: 1,304 sq ft

Lot size: 10,890 sqft

Year built: 2007

Listed with RE/MAX Results
$349,500 : 8222 132nd Street NW, Clearwater Twp

4 beds, 1 full, 1 part baths

Home size: 2,110 sq ft

Lot size: 27.51 ac

Year built: 1902

Listed with RE/MAX Results
$139,900 : 4334 Upton Avenue N, Minneapolis

2 beds, 1 full bath

Home size: 1,440 sq ft

Lot size: 5,227 sqft

Year built: 1937

Listed with RE/MAX Results
$249,900 : 4534 233rd Lane NW, St. Francis

4 beds, 2 full, 1 part baths

Home size: 2,444 sq ft

Lot size: 2.50 ac

Year built: 1999

Listed with RE/MAX Results
$149,900 : 5916 Penn Avenue S, Minneapolis

2 beds, 1 full, 1 part baths

Home size: 1,424 sq ft

Lot size: 6,969 sqft

Year built: 1947

Listed with RE/MAX Results

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

11315 Hillcrest Drive N , Champlin, MN 55316

Jon Perkins — Thu, 08 Dec 2011 03:18:07 +0000

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

Jon Perkins — Thu, 08 Dec 2011 02:44:37 +0000

We're sorry, but we couldn't find MLS # 4101320 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

2007 Glenhaven Lane N , Brooklyn Park, MN 55443

Jon Perkins — Thu, 08 Dec 2011 02:42:21 +0000

We're sorry, but we couldn't find MLS # 4078676 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

13896 Ivywood Street NW , Andover

Jon Perkins — Thu, 08 Dec 2011 02:37:16 +0000

We're sorry, but we couldn't find MLS # 4092210 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

US Treasury to Sell off Mortgage Backed Securities

Jon Perkins — Mon, 21 Mar 2011 15:05:24 +0000

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

Jon Perkins — Wed, 09 Mar 2011 23:09:08 +0000

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

Mary Deschamps — Mon, 28 Feb 2011 18:58:32 +0000

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.