If you have been considering buying a home in Richfield, take a look at this website that discusses a new development coming to the high traffic area of Hwy 62 / Penn Ave.  http://www.ci.richfield.mn.us/CD/Projects/Penn/PennCorridor.pdf

Yes, this will mean lots of construction for awhile but a gorgeous development of shops, condos, green space, parks, cafes, sidewalks and alot of beautiful landscaping appears to be on its way!  This face lift is much needed as many of the stores and streets in that area are looking run down and do not do justice to the work being done on many homes in the neighborhoods just off of Penn between the Hwy 62 and 68th Street.

Many of the rambler style homes in these neighborhoods were built in the 1950′s and we are finding many that have been redone to add updated ammenities like granite countertops and updated kitchens, new paint, landscaping, finished basements and more.  There are even some that have gone from being a rambler to a full two story nearly doubling the space of the home! 

Add this new development into the mix and watch home values rise in this area that is close to major Highways 62, 494, 35W and Hwy 100 and just minutes from 50th / France in Edina and Lake Harriet or Lake Calhoun in Minneapolis / Uptown.

Call me today to start looking at your future home in Richfield, MN!

Jen McKinnon
Realtor/Investor
612.384.1073
jen[at]mnrealestateteam[dot]com

AGENT REFERRAL NETWORK
MN Real Estate Team
#1 Real Estate Team in MN

So, you want to write a purchase agreement on a home in the Twin Cities but still need to sell your current home – what do you do?  I have been asked this question recently from clients who have found a great home in Richfield but still need to sell their home which is out of state.

Bottom line, in Minnesota, you can write an offer that is contingent upon the sale of your home.  However, in this position, you lose some negotiating power because even if the seller accepts your offer, they can continue to offer the house for sale on the MLS until you remove the contingency.  And, because you have limited control over if / when your home will sell, this could put you in a bind as far as completing the purchase agreement.

The seller can also entertain other offers even though they have accepted yours.  If they get another offer that they like, they can request that you remove your contingency within 72 hours by sending you a Request for Removal of Contingency. 

In MN, once this form is received, you will have 72 hours to sell your home and provide the seller with a Notice of Intent to Remove Contingency which must be accompanied by a copy of a valid, fully signed purchase agreement for the sale of your current home and can not be contingent upon anything else besides financing and must have a closing date no later than the closing date for the new home.

You will get your Earnest Money back if: 

• You can not remove the contingency and the seller moves forward with another offer.
• You decide to cancel the purchase agreement before the contingency is removed or can not close before the date on the purchase agreement.
• You remove the contingency but still have an Inspection Contingency, you can still back out during that designated time period for any reason.
• The seller backs out for any reason.
• You have all contingencies removed but can not obtain the financing to purchase the home.

You will lose your earnest money if:

• You remove all contingencies, obtain financing and decide that you just don’t want to go through with the transaction.  Translation….make sure you want the home before this point.

Jen McKinnon
Realtor/Investor
612.384.1073
jen[at]mnrealestateteam[dot]com

AGENT REFERAL NETWORK
MN Real Estate Team – #1 team in MN!

Why should I still want to buy a house when the world is on the brink of financial ruin? (cue soundtrack: R.E.M.’s “End of the world as we know it”)

By Alec Grebis, Cornerstone Mortgage, www.TwinCitiesDiscountHomes.com

1)  At least I’ll have my house if everything else falls apart.  Seriously, the main reason for buying a home is to own your own place—the “investment” value of it is second.

2) There is no Demand Clause in my mortgage: back in the times of the Great Depression mortgages had what’s called a Demand Clause.  They could call you up (or write you since almost no one had a phone) and demand that you pay off the mortgage within, say, the next 30 days.  These clauses disappeared sometime before the invention of Moon Boots.

3) If housing prices continue to drop for the next several years, the values will still come back up.  I just might have to live in my house a little longer than I expected—so I guess that’s a good reason why I should make sure I like the house I buy.  Also, what a great time to buy!  The number of homes to choose from at prices 10-20% lower than just 2 years ago makes this the best buyers market in the past decade if not longer.

4) If things get worse in the financial world, it will be easier to get a mortgage today than it will be in the future so I should act now before it gets more difficult.

5) Interest rates will be going up.  As all this new money gets pumped into the financial system the value of a dollar will drop.  And if the value of the buck goes down, the price of things will go up—that little understood word called “Inflation” will pop up every where.  So, even if home prices drop, my monthly payment could still be higher than it would be today because of the low rates.  Before 2002 rates had only gone below 6.25% once in 40 years.  I’m thinking rates around 6.0% are pretty good and I should take advantage of them—as the guy on the TV car commercial screams “Act Now!  These deals won’t last long!”

Jen McKinnon
Realtor/Investor
612.384.1073
jen [at] mnrealestateteam [dot] com

AGENT REFERRAL NETWORK
MN Real Estate Team

Buying a home in the Twin Cities is a big deal - buying a home is the biggest purchase most of us will ever make in our lifetime. 

So, you’ve found the “perfect” home in the Twin Cities and you want to write an offer up right now and can picture yourself moving in tomorrow….BUT, in my opinion, it’s always a good idea to get a 2nd opinion from someone other than your Realtor.  Whether it’s your spouse, significant other or a friend who’s opinion you trust and value, a 2nd opinion can save you from jumping into something too quickly or can confirm your thoughts about the “perfect” home.

It is your Realtor’s job to assist you in finding real estate to look at, offer professional opinions on the qualities of the home and neighborhood and guide you through the process of writing an offer and seeing it through to closing.  A Realtor holds what is known as Fiduciary Duties to each client and it is the Realtors duty to provide: Loyalty, Confidentiality, Disclosure, Obedience, Reasonable care and skill and Accountability.  The Realtor should do what you, the client wants within the law and within the fiduciary duties listed above.   A Realtor shouldn’t talk you into or out of a home but merely give his or her opinion.

So, bottom line, your Realtor can give their opinion but shouldn’t tell you whether to write and offer or not or whether this is the perfect home for you.  Your Realtor should provide a professional opinion and you should really have a friend, spouse, etc…come check out the house to make sure it is “perfect” for you.  The best scenario would be to have your 2nd opinion along for the first visit because sometimes you do find the “perfect” house and should write an offer right away.

As a buyer in the Twin Cities, what you want to avoid is writing an offer, getting it accepted, paying for an inspection, getting all the paperwork moving with the lender, the title company and both Real Estate companies and then having your 2nd opinion take a look at the home, give you their thoughts and then realizing that you made a mistake.  Although it is MUCH better to back out at this point (and you still can within your inspection contingency timeline – see my related article http://http://www.twincitiesrealestategal.com/home-buying/how-to-sweeten-the-deal-tips-on-getting-the-house-you-want/ ), you could have saved yourself time and money by having your 2nd opinion along for the very first visit. 

The last thing your Realtor wants you to do is purchase a home that you later regret.  We are on your side and want you to be happy with your purchase.

So, do you know who your 2nd opinion will be?

Jen McKinnon
Realtor/Investor
AGENT REFERRAL NETWORK
MN Real Estate Team

612.384.1073
jen[at]mnrealestateteam[dot]com

(summary of information in RESOURCE September 2008 Volume 8, Number 10 – a Minnesota Association of REALTORS publication)

Any Realtor will tell you that many of the homes they show or list in the Twin Cities today are considered “as is”.  So, what does this mean and what should you know as a buyer or seller?

Here are the “as-is” basics:

• The seller does not make any warranties about the central air-conditioning, heating, plumbing and wiring systems on the property to be in working order on the date of closing.
• When making disclosures, the seller’s liability is limited to facts known to the best of their knowledge at the time of dislcosure.
• The seller of a single family residential property (including bank owned foreclosed properties) is still required (by MN Statute 513.52-513.60) to inform a potential buyer (through a Seller’s Property Disclosure) prior to accepting a purchase agreement all material facts that a seller is aware of that may significantly or adversely affect an ordinary buyer’s use or enjoyment of the property or any intended use of the property of which the seller is aware.  Typically this is used if the seller actually lived in the property being sold.
• There is also a form called the Seller’s Disclosure Alternative which allows a buyer to agree to waive the seller’s disclosure requirements listed above.  This waiver must be signed by both the buyer and the seller.  Typically, this is used if the seller did not live in the property, has not lived in it recently or if the home is a foreclosure.
• The seller / REALTOR is also required to provide a form called Buyer Purchasing “AS-IS” Addendum which gets signed buy the buyer and added to the purchase agreement.
• Seller can also provide an independent 3rd party home inspection report with any additions or corrections about the property.
• Your realtor relies on the seller’s to know material facts regarding the property and must disclose anything they know or find out through the seller.  A realtor may not waive their duty to disclose.

NOTE:  A waiver of the disclosure requirements for MN Statute listed above does not waive disclosures required by other law.  Other government disclosures that are required by law at time of sale include:  septic system, wells, valuation exclusion, lead-based paint and local government disclosures.  A seller CAN NOT waive these disclosures regardless if the buyer signs a waiver or if the property if being sold “as-is”.  The MNAR forms listed in italics above will still include these disclosures for the buyer to fill out.

As I have stated before, if you are buying an “as-is” home in the Twin Cities or anywhere else, it is highly recommended that you obtain your own independent home inspection – even if the home is new construction.  See my article http://www.twincitiesrealestategal.com/home-buying/twin-cities-home-inspections

Questions?  Please contact me!

Jen McKinnon

Realtor / Investor
AGENT REFERRAL NETWORK
Member of MN Real Estate Team – #1 team in MN 2006,2007,2008

612.384.1073
jen[at]mnrealestateteam[dot]com

Yes, I know, the media wants you to think that the Twin Cities housing market is horrible but trust me, as a home buyer the time is now to get into your first home or the home of your dreams.

In the Twin Cities, we are getting back to the point of having to act quickly and “pull the trigger” when you do find a home that you love.  The days of being able to take your time are coming to an end – if you find “the house” – GO FOR IT!!!  I have seen alot of multiple offer situations lately from $75,000 houses in Minneapolis to $300,000 homes in Woodbury. 

What happens if you find more than one house of your dreams.  Contrary to popular belief, you can have multiple offers out on multiple houses at once.  A purchase agreement is not binding until it is accepted, signed and a copy is returned to the buyer.  Even then, if you have an inspection contingency, you can still back out up to and during the 3 day (typical) timeframe – for any reason and still be able to get your earnest money back.  However, I caution you on writing more than 2 at one time. 

So, with all that said, what can make your offer stand out from all the others?

• A good pre-approval letter from a reputable lender (I’ve said it many times but this is a MUST)
• An offer price that is based on recent market comparables – lowball offers are ok and justifiable from time to time but don’t make it a practice just because you feel like you should be able to do it.  Trust your realtors opinion on prices.
• Try to limit the contingencies to an Inspection only.
• Don’t ask for too much – the curtains are usually left behind but asking for alot of personal property or for them to do alot of work to the house (outside of fixing anything that is hazardous) is usually not well received.  The home has been used – don’t expect it to look brand new.
• Be flexible on the closing date.
• Put down more earnest money - $1000 is typical or 1%-2% that some banks will want.
• Write a personal letter to the owner telling them who you are and why you love their house – I’ve seen this work!
• Get the offer in FAST – work with your agent to get all the paperwork signed so that it can be turned in ASAP.  If you find yourself in a multiple offer situation,  delaying even a few hours could make the difference.  Some agents will wait for your offer to come in and some will give you a deadline – if you miss the deadline, too bad.

Nothing feels better than getting the call that your offer has been accepted!  If you need a good agent, give me a call!

Jen McKinnon

Realtor/Investor

AGENT REFERRAL NETWORK

MN Real Estate Team – #1 team in MN 2006,2007,2008

612.384.1073

jen[at]mnrealestateteam[dot]com

Have you ever wondered if an inspection is worth the money? 

I just had a closing on a property in Cottage Grove where my client saved himself time, money and stress by having a licensed inspector go through the house before finalizing the purchase agreement.  Although this Cottage Grove home was in good overall condition, the inspector noticed many things that the average consumer does not notice like faulty or lack of Ground Fault Indicators, Reverse Polarity of wiring and loose shingles within the nooks and crannies of the roof.

With the inspectors report in hand, we were able to go back to the seller and negotiate fixes to be completed before the closing – we did the final walk thru today and everything was taken care of.  Again, this saved my client from having to do the work himself and ensured that he was moving into a more sound and hazard free house.

Qualities of a good inspector:

• Can fit your inspection in within 3 days (typical inspection contingency timeline on a purchase agreement).
• Shows up prepared with all needed equipment and works throroughly yet efficiently.
• Offers explanations to you during the inspection.
• Allows you to ask questions during the inspection.
• Takes thorough notes and promptly records them.
• Takes photos of any issues of concern for documentation.
• Promptly gives you a copy of an inspection report for your records.

So, what about the Truth in Sale of Housing report (as required in St Paul and Minneapolis)?  Won’t that tell me everything I need to know?

This report is filled out by private evaluators that are licensed by the respective city.  These reports are based only on visual inspections but do not guarantee the condition of the home’s components or fixtures.  Also, and importantly, these evaluators are not required to ignite heating systems, get up onto the roof or inspect other areas that are difficult to access.   The reports are typically advisory in nature and not as thorough as a private home inspection – although Minneapolis does have a “required repair” list at the end of the report since 1999.

Bottom line, should you hire a licensed inspector in the Twin Cities and what can you expect?

• Home sellers are more willing to accept a purchase agreement contingent on an inspector.
• You can utilize the inspector’s findings (like my client did) to leverage repairs or reductions in purchase price.
• The Seller’s Property Disclosure Statement or Alternative only gives you information that the home seller knows about or can recall during the time that they owned / occupied the property.
• You will learn alot just by following the inspector around the home.
• A thorough private home inspection will last approximately 3 hours and cost you about $350.

Here’s a home inspector that I have worked with and highly recommend:

Win Home Inspections

Steve Stalock

952.891.4455

Although, you can do a home inspection on your own, I highly recommend hiring a professional home inspector to each and every client of mine and anyone looking to purchase a home.

Jen McKinnon

Realtor / Investor

AGENT REFERRAL NETWORK

Member of the MN Real Estate Team – #1 Real Estate Team in MN 2006,2007&2008

Whether you are looking in St Paul, Minneapolis or anywhere else, before you buy a home or start looking to buy, it’s crucial to know what price range you are comfortable purchasing.

The last thing you want to do is spend alot of time looking at homes and then when it comes time to make an offer, you get cold feet because you realize you are spending more money that you are comfortable with.

Questions to ask your self:

• What is my monthly budget?
• What is my monthly income?
• Remember you will have to pay for insurance, heat, electric, water, trash and gas on top of the mortgage payment.  These bills need to be factored in too.
• Not to mention the “nice to have” amenities at home like phone, cable, internet….

If you can work through all of this with your lender (I recommend Cornerstone Mortgage at www.mnhomeloan.com in advance, you will save yourself alot of time and stress.

It’s always better to do a little research up front so that you can feel good about your purchase later!

Jen McKinnon

AGENT REFERRAL NETWORK

Member of MN Real Estate Team – #1 Real Estate Team in MN 2006,2007&2008

612.384.1073

jen[at]mnrealestateteam[dot]com

1. Contact a Reputable Mortgage Lender

This is a MUST.  Yes, it’s a ”buyer’s market” but even in the Twin Cities,  you will have a hard time making an offer (much less getting it accepted) without a pre-approval letter from a reputable mortgage lender.  

Meeting with a lender will tell you many things:   

• what type of loan you should be looking at
• how much of a mortgage you are comfortable with
• how much of a loan you qualify for
• what price range you should look at for your new home

2. Determine what is important to you in a home (besides price point)

• location (narrow it down to 2-3 cities / areas)
• how many bedrooms and bathrooms do you need?
• garage, off street parking, size of yard?
• square footage, basement, one level, split level, two story?
• what are your “must haves” vs “nice to haves”

3.  Find a reputable and licensed Realtor in the Twin Cities or near the area that you want to buy a home in.

• Ask friends and family who they have used in the past
• Find someone that you feel comfortable working with – you will spend alot of time together!

4.  Have discussions with your Realtor to “get on the same page” about what you are looking for in a home.

• Make sure your Realtor listens to you
• Clarify to make sure everyone is “on the same page”

5.  Build the rest of your Real Estate Team (besides your Lender and Realtor) 

• Professional Home Inspector
• Title / Closing company
• Insurance Agent

6.  Get out and start seeing homes!

7.  Make an offer (don’t be afraid to take the plunge)!

8.  Negotiations / Counteroffers may occur at this point

9.  Offer is accepted! 

• Schedule the home inspection (usually within 3 days)
• Schedule Title / Closing (usually done by your Realtor)
• Contact your Insurance Agent to get your binder together

10.  Work with your team (lender, title / closing company, insurance agent and Realtor) to get all paperwork together and finally…….

11.  Show up on time to the closing

• Sign your name alot
• Collect the keys to your new home!