West Metro Minnesota Real Estate Blog

Finding the right real estate agent is critical to your home search...and  likely easier than you think.

The characteristics that define a great real estate agent are fairly intuitive. Most buyers say they seek an agent with integrity, wisdom and a deep knowledge of both the current market and their specific search area.  While your criteria may be similar or even broader, the real challenge comes not in building a list of requirements but in stacking realtors against it.

Luckily assessing agents has never been easier. By leveraging technology and investing a little time, it is fairly easy to find the agent that is right for you.

Five categories will help strong agents immediately rise to the top.

1. Check Their Focus

With over 17,000 licensed real estate agents in Minnesota, it is clear that proper qualifications go well beyond licensure. The first step in discerning if an agent is a fit for you is to understand their focus. Knowing how they’ve built their practice will go a long way toward making a match.

Strong agents are active and clearly know their niche. The best focus on a specific geographic area. A few pointed questions can help define any realtor’s focus.

• How long have they been in the industry? Is it their full time job?
• Do they specialize in a specific search area?
• How many transactions did they facilitate last year?
• How many clients do they have right now?

2. Assess their Adoption of Technology 

Technology has dramatically changed the real estate industry in the past decade. Discerning how an agent has incorporated these changes into their practice can tell you instantly if they are on their game.

• Does their website look professional?
• Can they incorporate custom searches, pre-screen properties and engage via email?
• Do they have a social media presence?
• How accessible are they via email and cell phone?  

3. Ask for References and Testimonials

While any agent’s website testimonials will likely be glowing, succinct and well-written, they can also help you understand what a prospective agent sees as his or her differentiators. How they choose to highlight their services and past interactions speaks to their perception of what makes a strong agent.

• Review all testimonials available and ask for references for follow-up
• Check the transaction dates for those references to ensure they are recent
• If you contact past clients, focus questions less on their satisfaction and more on the process that was followed and how their agent helped  

4. Cyber-stalk Them a Little

In 2017 there is no shortage of data available on almost anything, this includes real estate transactions. Ask your prospective agent about their current listings and recently closed transactions and do a little research. If they don’t have any, this is a red flag. If they do, get your creep on. Spend some time on the listings service viewing those properties (both current and sold). Assess how they fit with what the agent may have told you about their practice.

• How many properties was he/she able to easily provide?
• How many days on the market for each?
• Are they in your search area and relevant to you?
• How professional are the property descriptions and photography?  

5. Make Them Prove it

At the end of the day an agent may look great on paper and check all of the boxes in client communication, service and track record. But how can you be sure they are a good fit for your family? Why not take a test drive? Most reputable agents have complimentary offerings that allow you to assess their process, attention to detail and focus.

A few common “free samples” include:

• Setting up a custom search to email properties that fit your needs
• An assessment of the value of your current home
• A walkthrough of a prospective home that fits your criteria

The Bottom Line

Residential real estate is an incredibly competitive field. This makes finding and retaining the best agent crucial to a successful search. The good news is that advances in technology make vetting agents and contrasting the options simpler than ever.

At Zachary Adams and Associates our differentiators are communication, accessibility, a superior client experience and a focus on the west metro of Minneapolis. We have facilitated hundreds of transactions and are particularly adept at customizing our approach to each client we serve.

If you are considering making a move, we’d love for you to put us to work for you. A brief consultation is a great start. Contact us today to get started.

Pricing your home, pre-sale renovations and getting a great deal--  we put conventional wisdom to the truth test.  

Unfortunately, fake news is not limited to political posts on social media. Misinformation is rampant elsewhere and too often it is found masquerading as conventional wisdom. No place is this more evident than in residential real estate.

So what can you believe? Let’s bust some common myths and find out.

Myth #1- Price your home slightly above the price you hope to get

Truth Test: Generally False

This theory is based largely on the model employed when selling goods at the flea market. The thought is that if you list for a certain price, you’ll almost certainly be talked down. So if you start higher, the price you settle on will net you more money.

This logic is usually faulty because residential real estate works less like a flea market and more like an auction. In an auction, early interest builds to a crescendo and momentum drives prices higher. By pricing your home competitively and marketing it aggressively you can play into this interest and may ultimately end up selling it above list price.

The rare instance where pricing above market may prove fruitful is when a market is growing, but even then the strategy becomes a balancing act. The overriding goal as a seller is to maximize sale price while minimizing days on market as these factors are directly related.

Myth #2- A great deal and a great house go hand in hand

Truth Test: False

In the era of online property listings, the great house for a great price is mostly a white whale. The hidden gem simply is no longer hidden. Technological changes have evened the playing field, making online searches simpler for even the less than engaged. This makes ferreting out a steal incredibly challenging. 

Rather than seeing this change as a negative however, buyers should instead embrace the efficiency of the real estate market and use it to their advantage. Today you can use technology to make your search more effective, save time and reduce your level of effort. 

Remember, there are still great homes out there, but in today’s market obtaining them is less about luck and more about knowing exactly what you are after, being ready to act and negotiating favorable terms when you do. An experienced agent can help by researching the situation, understanding seller motivation and making subtle tweaks to your offer to help it rise above the competition.

Myth #3- Pre-sale renovations will pay for themselves

Truth Test: Mixed

Generally smaller items like paint, carpet and other updates to kitchens and baths can all positively impact your bottom line. A common mistake is assuming that full scale renovations are the same. 

While addressing the negatives of your home may be worth the investment, turning a C+ kitchen into an A probably won’t, as expenses can be high and individual tastes can vary. For this reason, any investment of over a few hundred dollars prior to sale should be vetted with an agent. He or she can help you understand the impact a project may have on your bottom line.

Myth #4- Your home is an investment

Truth Test: Mixed

Contrary to conventional wisdom, housing is really more of an expense than an asset, particularly in the short term. While growth is possible and may even be likely, the reality of cyclical markets means there are no guarantees. 

But don’t worry, home ownership still makes financial sense for many, just keep in mind that as an investment opportunity it also carries significant risk. For this reason, the majority of homes should be purchased with a long term timeline (3 years minimum) in mind.

Myth #5- Buying a home using the listing agent can reduce costs

Truth Test: False

While “eliminating the middle man” in a transaction intuitively makes sense in many ventures, real estate is not among them. The issue is that a listing agent has a fiduciary responsibility to the seller first and foremost. They were hired to sell a home with the most favorable terms. You cannot count on the same level of commitment to your needs as buyer.

In contrast, a buyer’s agent can and will fully commit to serving your best interests. This is important, as having the wisdom of an experienced advocate on your side can far outweigh any discounted commission offered by a listing agent. Add in the fact that the sales commission and other fees typically come out of the seller’s side of the equation and you can see that this myth just doesn’t hold water.

The Bottom Line

Real estate is an ever-evolving industry with market dynamics, proper pricing and other issues serving as a moving target. In such an environment, conventional wisdom is not enough. Staying on top of trends and nuances requires diligence and the focus of a full time agent who knows your search area well.

At Zachary Adams and Associates we have facilitated 100s of transactions in the west metro and have client testimonials that prove our commitment to our clients is more than just talk. If you are considering a move, or simply want to understand your situation and discuss your options, we’d love to hear from you.

Real Estate Q & A 

Zachary Adams is a residential real estate expert with 100s of transaction in the west metro of Minneapolis.  In Ask a Pro he responds to email questions on all things residential real estate related. 

To submit a question for Ask a Pro click here

This Month:

• 2017 Housing Shortage
• Spring 2017 Real Estate Rush
• Buy or Sell: Which Should I do First? 

I’ve heard about the Twin Cities housing shortage. How will this impact the west metro? -- Cole in Minnetonka

The New Year is off to a busy start already, fueled by demographic changes, interest rate fears and the continuing low inventory trend you mention. 

Here in the west metro we are seeing the biggest shortage among properties priced in the $300k - $500k range.  While homes are available at that price point, some competitively priced homes are seeing multiple offers shortly after listing. 

This means buyers focused here need three things.  First a strong understanding of the market.  Secondly the ability to apply that understanding to recognize a deal and finally the readiness to act.

Staying nimble and focused is key, but a mortgage pre-approval and willingness to be flexibility with your offer terms can also help.  Keeping these things in mind can help you land even the most coveted new listing.   Just be sure to make any offer contingent on an inspection.

We are hoping to list our home in the spring and have several projects to complete.  If I want to maximize my sale price, I think it's best to list during the spring real estate rush.  When does that begin?  -- Teresa J., Eden Prairie

First off, congratulations on putting in some time and effort to prepare your home for sale.  With a little money and the right focus, you can seriously impact your bottom line.

As to the spring rush, how about now for a start time?  It seems every year the spring rush starts a little earlier and lasts a little longer.

Typically in past years it has spanned from mid-March through June with listings peaking sometime in May.  However this year we saw a very active February and have begun an even busier March, so speculation is that it is only going up from here.  Certainly things will get busier, but the time to act is now as there is much pent up demand in need of inventory.  This is particularly true in the $300k - $500k segment referenced above.

I’d advise that you complete your crucial projects, spend some time thinking about pricing and staging, and get your home listed. 

I need to both find a new home and sell my existing.  I’m not interested in carrying two mortgages and am concerned about timing.  Which should I do first?  -- Abi, Plymouth

While you’d love to work on both simultaneously and have your dates magically line up, you are right that it is not always possible.  Determining the correct order and best approach is a question with many variables.  These include your specific search goals, financial position, search area and others. 

Since you didn’t share specifics, I’ll stick with a good rule of thumb.  To help manage risk it is generally best to determine which side of the transaction will be the bigger challenge and tackle that first.   Again, there are many factors, but in a low inventory environment like we are seeing, the challenging part will likely be finding a new home.  If you plan, prep and competitively price your existing, it should be easier to sell.  

 The only way to know for sure is to sit down with a reputable agent for a valuation of your existing home and to build a wish list for your new home.  This information will help determine which decision is right for you.  

Our quarterly buying guide and selling guide offer additional info about current trends and best practices that can help your 2017 home search.  

For a more customized approach, a no obligation consultation is fast and free.  We can provide a valuation of your existing home and help you build and execute a custom search.  Please give us a call at 612.656.9647 to get started.

How can you ensure you are building smart when you’ve never built before?  By leveraging the wisdom of those who have gone before you.   

When building a new home, the most important component that will influence design is your family’s lifestyle. Personal preference and past experience can inform your decision-making regarding the biggest factors such as the style of home, number and location of bedrooms, bathrooms and others.

But what about the details? Are there options you didn’t even think to consider?

A good method to close your knowledge gap is experience. What did previous dream home builders think to include, or forget and wish they had?

We work with many homebuyers and builders and have compiled a list of items to consider. Most are low cost, low effort but high impact… provided you include them in the plans from day one. 

Lighting

Intuitively, most of us understand the importance of windows and natural light and incorporate these into design. Yet despite being just as important, lighting is given a lot less attention.  

A few items to consider include:

• Recessed or directional interior lighting consistent with the intended the use of each room
• Lighting under cabinets or on stairwells for utility, safety and aesthetics
• Magnetic door switches installed in closets so the light comes on when you open door
• Recessed lights in exterior roof soffits for curb appeal, security and to build a welcoming and warm look 

Electrical

Electrical work is inexpensive during the build phase of a home, making the added flexibility of forethought affordable to execute

• Generally the more outlets the better. Do not rely on building code to define number and placement!
• Consider floor outlets in an open floor plan home to keep lamp cords tidy
• Add a charging station for electronic devices in a mudroom or kitchen, you can even wire one into the drawer of a media desk for extra convenience
• Hardwire speakers and other technology where possible (surround sound system, intercoms, etc.)
• Anywhere you might later add a television, add a cable and data jack for better streaming, especially bedrooms
• Add a special external outlet connected to a switch for holiday lights  

Garage/ Exterior

Perhaps due to exhaustion in home design, few families focus the same level of effort they dedicated to their home on configuring their garage. Ensuring a smooth design here is also important

• Install an in-floor drain for projects and Minnesota winters
• Add a dog-washing tub to clean your pet prior to entering your home
• Include a soft water line to an exterior spigot for washing your car

Utility Infrastructure

Accommodate your future self by running water, drain, gas or other utility lines to unfinished space where you anticipate a future need

• Even if your wet bar didn’t make the final cut, plumbing it out in your basement now can make sense
• Yard irrigation lines can be roughed in and fully installed later
• A gas fireplace is much more palatable expense later when the gas line already exists

General

A few additional suggestions fall under best practices to at least consider for your new home:

• A multi-zone HVAC system can cut utility costs and help the environment
• Added insulation as soundproofing around media or guest rooms
• Double-paned windows that flip in for easy cleaning
• Built-ins like lockers by external doors, or as additional flexible storage elsewhere
• Mud rooms serve as a transition point from outside and can organize entryways and hide away kids boots, coats and gear
• A battery backup sump system can save you great expense and headaches later

Hop in the DeLorean

The important thing with any or all of these is to be forward-looking and consider your future. Try and approximate what your needs may look like three, five or 10 years from now.

Will your family grow? Will you be sending kids off to college? Getting kids back after college? Looking to finish unfinished space?

By building options into your new home now you can ensure it serves you well even as your family transitions in the future. At Zachary Adams and Associates we have helped many families in the west metro design, build and complete homes that meet their diverse needs. We’d love to be a resource to similarly help you. Contact us today to get started.

What did we miss? Share in the comment section the best feature of your home that might work for others, or alternatively, those features you wish you had but may have overlooked

Purchasing your first home in the west metro means navigating some unfamiliar waters. This can seem particularly daunting when it comes to financing. As the acronyms begin to fly in the mortgage process it can be challenging to understand the various options available and more importantly their impact to you.

Entering the process with a basic understanding of both the type and structure of loan options can help greatly.

Loan Type- Conventional vs FHA vs VA

Loan Structure- Fixed vs Adjustable

In addition to the type of mortgages discusses above, there are options related to the rate structure of your mortgage.

While there are many different types of products, the biggest variable here involves how interest will be charged. This can either be a fixed number or one that can adjust over time.

The type and structure of your mortgage loan are both important to understand, but only represent a small portion of home financing considerations. The best way to consider your options and which may be right for you is to sit down with a knowledgeable resource and begin with a goals-based consultation. You will leave that discussion with an idea of the payment you can manage and how that may contribute to your housing budget and drive your search.

At Zachary Adams and Associates we have taken hundreds of families through this process and helped demystified all aspects of home buying. If you are ready to marry your wish list with our wisdom, we’d love to hear from you.

Contact us today to get started.

Selecting and purchasing your first home can seem equal parts terrifying and exhilarating. Success in such an environment requires carefully balancing both the emotional and financial sides of the equation.

Understanding and avoiding some common pitfalls can help.

Takeaways:

• The prospect of buying your first home can be intimidating

• Lacking direction, some homebuyers are quickly frustrated by the process

• By avoiding key pitfalls, you can make the most of your search

 

Pitfall 1- Failure to Clearly Define Success

Any goal begins by first defining when you’ve reached it. For many homebuyers this means spending significant amounts of time defining the characteristics of the home they seek. While this is a good start, it really only represents part of the equation.

Successful buyers must also understand the financial and lifestyle implications of any purchase.

• Carefully consider the full cost of a home purchase and budget accordingly. Include property tax, home insurance, upkeep and moving expenses
  
  
• Think about lifestyle factors such as commute times, daycare costs and other factors associated with your target search area
  
  
• Be careful to also factor in your long-term needs (additional children/bedrooms, teen drivers, school district, proximity to key resources, etc)

Pitfall 2- Lack of Pre-search Preparation

A frequent lament of new homebuyers involves time wasted on the front end. This comes from searching for homes without any real structure, finding houses that don’t fit or being ill-prepared to act when one does.

Taking a more systematic approach to your search can be easier than you think.

• Hire a buyer’s agent with a deep understanding of your search area. This is at no cost to you but will provide an advocate who can ask the right questions to help make your search targeted and efficient.
  
  
• Ask your agent to sit down with you to review homes in your price range and target area. Set up a few walkthroughs and use them to gain an understanding of the market
  
  
• Obtain a mortgage pre-approval outlining the costs and terms of a prospective loan. This delivers clarity about your budget and sets you up to act fast.  

Pitfall 3- An Inability to Manage Emotions

Searching for homes is an emotional endeavor, but savvy buyers find a way to rise above those emotions. Falling in love with a particular home is a recipe for failure. If you are not willing to walk away, you lack leverage for the important negotiations that protect your interests.

• Hope, dream and aspire to a great home, but don’t emotionally invest in any particular home on your list.
  
  
• Know the market and rely on your agent to help you stay rational with a clear assessment and valuation of each home.
  
  
• Make every offer contingent on a buyer’s inspection and carefully consider major issues that arise. 

Pitfall 4- Improperly Vetting your Agent

An experienced agent is crucial to any real estate transaction. Their knowledge of the home buying process, your search area and the wisdom of countless transactions will serve you well.

This makes finding the right agent crucial.

• Demand local expertise. Neighborhood-level knowledge can be imperative in getting the right home at the right price. Ask for a list of recent transactions.
  
  
• Hire only a fulltime agent
  
  
• Define a clear service level agreement. Any reputable agent will be able to clearly spell out their availability, various means of contact and a backup plan. 

The Bottom Line

At Zachary Adams and Associates we are laser-focused on client satisfaction and building relationships for life. We have facilitated hundreds of successful transactions in Maple Grove, Minnetonka, Plymouth, Eden Prairie and the surrounding communities.

Finding a dream home for your family doesn’t have to be a dream. We’d love for you to put us to work for you.

To learn more about how we can help, contact us for a free consultation.

After a busy year that saw residential real estate values rise steadily and a flurry of activity, what can we expect from 2017?

Several trends can help us discern the future.

Takeaways:

• Residential real estate had a great run in 2016

• Next year promises more of the same, driven by several key trends

• Understanding those trends can be key to success in the new year

 

Continued Strength in Home Values

Despite a contentious presidential election and the ever-present potential for interest rate changes, experts remain bullish on home values and the housing market in general. Rates may continue to rise, but changes will likely be slow and deliberate and the likelihood of rates having a dramatic impact on supply and demand seem remote for at least the first half of the year.

The housing market is likely set to continue a bull run with many longtime residents taking the opportunity to right-size their homes. This means down-sizers and move-up buyers should continue to drive trends that still point up. 

Increased Mortgage Flexibility & Easy Credit

According to the mortgage credit availability index, the availability of credit is near highs for the past decade. This will offer flexibility that can fuel the market well into 2017. Additionally, lenders are offering more flexible options to consumers in both terms and down payments, further driving many to consider a new home.  

Housing Shortages to Continue, but be Limited in Scope

Much like we’ve seen the past year, it appears 2017 is headed for more demand than supply at certain price points. Home supply is set to continue to be scarce in the midrange ($250k - $500k) but robust both above and below. 

Homes are still available in the midrange zone and the market is active, but in the near term demand may continue to outstrip supply for move-up homes.

Generational Factors Make 2017 the Year Act

Millenials who are now set in careers and looking to purchase will continue to drive demand. Similarly baby boomers moving on and looking to downsize or rightsize are offering supply.

These generational factors will make selling an entry-level home or buying and renovating a dated home an easier play than in past years. It is not surprising given this backdrop that house flipping has returned. This presents interesting opportunities for sellers and a few potential challenges for buyers. 

Technology will Drive Buying and Selling

Customized searches and the free-flow of information will continue to shorten the sales cycle for desirable homes that are priced appropriately. This means that buyers must be ready to respond quickly when homes that fit their needs are listed. Pre-approvals for credit along with an existing relationship with a real estate professional can prove invaluable in such a market.

For sellers, the tech trend means that online home profiles, compelling photography, social media marketing and staging are more important than ever. The window for capturing attention and garnering a sale is shrinking.  This makes better preparation and proper pricing crucial.   

The Bottom Line 

At Zachary Adams and Associates we are looking forward to a busy but productive 2017 delivering everything you need to sell or purchase a home. We are adept at social media marketing, veterans of developing custom searches and well-versed in the changing dynamics of residential real estate.

If you are considering a move, now is the time to begin preparations to capitalize in the coming year and we’d love to be a resource to help. Contact us today to get started.

Our annual look at how the other half lives is back, and again west metro homes on Lake Minnetonka dominate the list.

While all five of the highest-priced homes sold last year are on the lake, that easy access to fishing and boating comes with a price. Not only is the entry point north of $4 million, perhaps more startling, the #4 property on our list ($4.4 million) was a teardown.

Realty voyeurs may be particularly interested in home #1 , as the buyer is familiar to local sports fans.

Takeaways:

• The West Metro is the place to be in Twin Cities residential real estate

• Last year saw five homes fetch over $4 million each

• With the “sold search” function on westmetrohomesearch.com you can explore each of them, as well understand the market for homes that may better fit your budget

 

The Mansions of Minnesota Millionaires

#5- 2217 Huntington Point Road, Minnetonka Beach

$4.2 Million
7,400+ sq. ft, 1.1 acres
6 bedrooms 7 baths
Sold 10/31/16

If it is amazing lake views that you covet, you may have missed out on the pick of the litter with this Nantucket-style home. As an added bonus to the incredible scenary, this home features a carriage house above the garage, perfect for entertaining stay-over guests who don’t find one of the six bedrooms amenable. Bargain shoppers will also note that it sold for $775k less than the listing price.

#4- 670 Ferndale Road, Wayzata

$4.4 Million 
6,100+ sq. ft, 1.2 acres
5 bedrooms 5 baths
Sold 10/24/16

For a paltry $4.4 million you can hardly expect a residence worthy of Lake Minnetonka’s Gold Coast. As such, this listing is for a teardown. How can we be sure? The home was sold as-is—which is realty speak for “buyer beware”. Another dead giveaway is the fact that the listing doesn’t include any interior shots of the home. That, and the fact that the listing detail actually says “value is in the land”. It certainly begs the question, if you lay down $4.4 mill for land, what is your construction budget? 

#3- 20240 Lakeview Avenue, Deephaven

$4.2 Million 
7,300+ sq. ft, 1.1 acres
3 bedrooms 6 baths
Sold 8/31/16

Modern design inside and out makes this Minnetonka Mansion stand out, as does the modest three bedrooms and smaller lot. But perhaps the biggest asset is the tax-assessed value. Property taxes of over $33,000 may seem steep, but for properties like these it is a relative bargain. Add in a knee hockey setup in the basement and this home was a unique find for a family with school age children.

#2- 539 Harrington Road, Wayzata

$4.85 Million 
14,900+ sq. ft, 1.1 acres
5 bedrooms 6 baths
Sold 10/14/16

For the truly cultured, this grand Italian Villa may bring memories of vacationing on the Italian coast. For the rest of us, the marble columns likely conjure memories of Caesar’s Palace in Vegas. Regardless of your point of view, with nearly 15,000 square feet of living space, an exercise room and athletic court, this is a truly stunning property to behold. The listing even includes an aerial virtual tour to give you the drone’s eye point of view.

#1- 18150 Breezy Point Road, Woodland

$6.2 Million 
6,700+ sq. ft, 3.1 acres
5 bedrooms 7 baths
Sold 6/16/16

The most expensive home sold in 2016 has some “major league” features including an eight-stall garage, a 1,700 square foot guesthouse and an indoor sport court. The buyer, who is familiar to Minnesota sports fans, also gets 115 feet of shoreline on Wayzata Bay with this beautiful South Hampton style home. All will allow his family to enjoy the very best that Lake Minnesota living has to offer while dad spends 162 games captaining the local nine.

Ready to Step Up to the Plate? 

If this look at “how the other half lives” has you dreaming of a new home, we’d love to help you investigate options in your price range. It doesn’t take a professional athlete salary to find a home that is a fit for your family and can significantly improve your quality of life. A free consultation is a great start. Contact us today to get started.

• Do your family members outnumber your bedrooms?
• Is your kitchen so dated it’s now considered retro?
• Is your master suite anything but?

The reasons may vary but the result is the same. You and your home have reached the tipping point in your relationship. Your space no longer matches your needs.

It is time to take action.

The question remains, how do you determine what that action should be?

Takeaways:

• When your home no longer fits your lifestyle it may be time for a change

• Deciding whether to remodel your current home or move can be challenging

• By carefully following a process, you can gain insight and find a path forward 
  
  
  

Step 1- The Airing of the Grievances

The first order of business in determining how best to proceed is to build a wish list of improvements. A good starting point is to take stock of your current home and where it may fall short. Include not only the items that are forcing the issue today, but even the issues you may have adapted to in the years you’ve lived there. Additionally, consider how your home may fit your circumstances 3-6 years down the road.  List all considerations and stack rank them, placing an asterisk next to two or three non-negotiables.

Step 2- Define Your Bottom Line

Next it is a good idea to get your arms around your budget. The first order of business is to understand the value of your current home.   A real estate professional knowledgeable in your area should be able to conduct a walkthrough and provide not only a potential listing price, but also a complete list of fees and expenses for a sale transaction. This will clearly spell out your total equity and net sale proceeds.

Related: Key Attributes to Look for in an Agent

Step 3- Price the Options

The easiest way to understand the cost of a potential new home is to spend some time searching through online property listings. Be sure to customize a fairly specific search that includes items from step one that you deemed crucial.

Since you are only researching the market, it will be valuable to search both active and recently sold homes to gain insight into pricing.  Once you have found a few that fit your needs, take those prices to an online mortgage calculator to determine your potential monthly payment.  Be sure to include changes to property tax and insurance premiums.

To estimate the cost of a renovation project, begin with an online calculator or remodeling magazine. These resources can provide information about both the average cost of work and the value it will add to your home. While these numbers will be approximate, they should prove directional enough to give you a high level understanding of potential costs.  Armed with this estimate, have a quick conversation with a banker or mortgage broker to understand your potential financing options, term and payments.

Step 4- Talk it Through

Following step #3 you likely have the metrics you need to make a choice, but metrics only tell half of the story. While the financial considerations are important, it is the emotional considerations that typically tip the scales.

Gather the family and have a frank discussion about both the positives and the negatives of each side of the equation.  Discuss in frank terms the impact moving or remodeling will have on your life.  Keep an open mind and carefully consider your options.  

The Bottom Line

Balancing the financial, logistic and emotional considerations related to a change in housing can be challenging and stressful. Taking a systematic approach can help greatly.

At Zachary Adams and Associates we know how stressful this decision can be. We’d love to be a resource to help minimize that stress and assist your family in finding a clear path forward. Whether that means showing you homes to help gauge the market, helping you build a custom search or assisting you in quantifying the costs and outcomes we have the experience to help.

A free home valuation is a great start.  Contact us today to get started.