West Metro Minnesota Real Estate Blog

Before you start your new home search, it is important to get pre-qualified.  Mortgage lenders can pre-qualify prospective homebuyers prior to requesting a mortgage on a particular real estate. Lenders estimate a borrower’s monetary ability to commit to monthly payments; therefore, pre-qualifying assists lenders with making better loans and helps borrowers search for a home within their means. By being informed in advance, the sum of the loan one can qualify for is already known and takes the conjecture out of the real estate buying procedure and could increase the bargaining power of the buyer.

PREPARATION

First, one must supply the lender with a basic financial summary that will consists of gross pay prior to deductions and taxes, savings and additional liquid-assets accessible for the down-payment and closing-costs, this is called the Loan Application. In addition, debt calculations, along with installment payments on any unresolved loans, credit-card debt, personal loans, school loans, and home loans are important as well. Credit-history and rating are also considered when deciding the largest amount that can be borrowed and what the interest rate will be.

CALCULATION

During the pre-qualifying procedure, lenders take into account the interest-rate and length of the mortgage to establish the sum of the loan. Higher interest rates will result in higher monthly payments.

RESULTS

Prequalification results disclose the highest loan amount that one can be qualified for. The lender will advise the amount needed for a down-payment on the kind of loan the person is applying for, and calculate the closing-costs. Naturally, qualifying for a specific amount does not automatically indicate that one should pursue a mortgage for that amount. It may be smarter to aspire for a somewhat reduced sum to make it less stressful repaying the mortgage.

BENEFITS

Prequalification reveals the monthly-payment of the interest and principal on the loan one may qualify for. In many instances, the lender can estimate the sum to be paid toward mortgage-insurance, hazard-insurance, and property-taxes, which in most instances, will be combined with the monthly mortgage-payment. Understanding these amounts in advance will give a borrower an exact approximation of the anticipated cost of home ownership.

Ready to get Pre-Qualified and save money?  We suggest you contact our Preferred Lender; Lee Aldrich - Stearns Lending.  Give him a call at 612-839-0217 or Apply Online 

Zachary Adams | Realtor | Wright Sherburne Realty | 612-845-7890 

Comparative Market Analysis (CMA)

Wikipedia defines a CMA is "an estimate of the home's value compared with others in it's local market".  You may say, that sounds like an appraisal, well....yes, sort of, but the difference is that a CMA takes actively listed properties(supply) in to consideration as well as sold properties. An Appraisal uses only sold properties to determine a value based upon actual sales, not supply.  If you are planning to sell your home, it may be beneficial if you have recently had an appraisal comepleted, but ask your local real estate agent if that is an accurate guage of value and they will give you a different story.  We have been selling West Metro real estate for years, and where it is very important to look at the value of recently sold properties to determine value, it is almost as important to look at the current supply of comparable homes available as well as the comparble homes in pending status(under contract but not closed yet).  Here is a brief explanation about how each property status; Active, Pending & Sold is used to determine Market Value:

Active listings

Home that are actively available on the local market.  These are valuable to determine what the competitive landscape is for comparable available homes and what potential home buyers will be looking at.  But keep in mind, this is not a value determining factor, even though a seller can ask whatever they want for their home, it doesnt mean a buyer will pay it.

Pending Listing

Pending sales are homes that are currently under contract with a buyer and are awaiting closing.  This is commonly referred to as "in escrow".  Pending sales do not disclose the sales price, but they do give an indication of at what price the home was listed at when a buyer was procured, thus allowing an agent to determine if the market is trending up or down in value or if current market time is increasing or decreasing.  Both are valuable to positioning your home accurately against your competition.

Sold Listings

This is the good stuff....the actual sales data of comparable homes within your local market.  These are the homes that are most alike to your home, and have sold within the past 6 months.  Why only 6 months?  Because the Minnesota real estate market changes, and values can trend up or down with a calendar  year, and if we use old data, our values will be inaccurate.  Study these, they dont lie, this is what a buyer has actualy paid for comparable homes.

Cancelled or Expired Listings

I didnt mention these above, since they are not always included in a CMA, but they do deserve a look.  If a home was listed and didn't sell, what do you think the reason was?  Condition?....Sometimes.  Ineffective marketing?  Many times. (We have sold many homes that other agents couldn't for the same price or higher than the other agent had it listed for previously), but most times it comes right down to value.  The home did not show enough "value" at it's previous list price, and buyers were not willing to pay what they were asking.

We have been selling West Metro homes for years and know our market, and this allows us to accurately convey values and marketing strategy to our clients for effective marketing of their property.  The ultimate goal is the highest sales rice in the shortest marketing time.  If you intend to sell your home soon, please complete an Instant Home Valuation and one of our Pros will reach out to you with any questions or call us at 612-845-7890.

Zachary Adams | Realtor | Wright Sherburne Realty | 612-845-7890 

1. Is now the right time to move?

Selling your home is not free of obligation to the seller. It takes commitment and preparation to make a home show well for market. Out agents can help with prepartion, but a committed seller is very important to a successful transaction.

2. Who is the right Agent?

There are a lot of agents out there, make sure you do your homework and ask some questions about their track record. If you plan to sell now, select wisely and choose an active and experienced agent to agressively market your home. We produce great results, on average we sell our clients west metro homes in less than 68 days for 98.9% of list price. The current local average is 103 days and 94.3% of list price. Our clients make more money, in less time.

3. Prepare your home for Market

We help our clients prepare their home for market. We take time to go through each of our client's home with them and determine what should be completed to allow the home to show better than the competition. Staging, repairs, landscaping, pre-inspections, etc. The way a home shows to a prospective buyer once we get them through the door is as important as the price the home is offered.

4. Determine Price & Marketing Plan

We complete a Comparative Market Analysis of our client's home to determine the current market value and also identify the competition. Pricing is key to a successful sale, and we need to keep our clients informed so they can price it accurately and react if the market changes. Once the price is determined, we start the marketing machine. Over 90% of Homebuyers use the internet as part of their search for a new home, we use the latest technology(Multiple Listing Service, Listing Syndication to hundreds of Property Sites, Social Marketing, Email Blasts, QR Codes, Single Property Websites, Vitual Tours & more) as well as proven traditional methods(Yard signs, Open Houses, Professional Photographer, Brochures, etc) to attract Homebuyers to your home and ultimately get it Sold.

5. Adapt to Market Changes

The Twin Cities has an active real estate market and our job as Real Estate Agents is to keep our clients informed when the market changes. We provide our clients with periodic market updates; Who's new on the market? Which homes sold recently? What feedback are buyers giving us after showings? and how do those factors effect our current market position and how do we adjust if need be.  

6. Procure Offers & Negotiate

The marketing is in full effect, the phone is ringing, buyers are looking at your home, we are getting positive feedback from the showings, and BAM!.....here comes an offer! Now is when our market knowledge of the current market and our ability to negotiate on your behalf comes in to play. Like stated above, our clients homes sell for more money in less time.

7. Guide You through Escrow

After the negotiations are done and the contract is signed, our team will manage the file through inspections, appraisals, title commitments and eventually a successful closing.

8. Closing!

See you at the closing table to sign! Pick up your check and hopefully the next thing to do is close on the purchase of your new home!

Zachary Adams | Realtor | Wright Sherburne Realty | 612-845-7890

Is your Home Social?.....Can we go anywhere without LIKEing something, or TWEETing it, PINing, PLUSing, sometimes we even have to YELP it to the masses!  Yeah, life has changed in the past couple years and the way each and every one of us interacts with our friends and family has also changed.  So lets try to keep up.  Real estate is a very social industry, agents try to connect with buyers and sellers on a personal level and gain trust from our clients.  Can you imagine if I walked up to a perfect stranger on the street and asked "Where do you live and are you thinking of selling soon?"  Awkward, right?  Yeah....ranks right up their with door to door salesman walking up the drive while you and your kids are playing in the front yard.  Our home is where we retreat to after a long day, we share it with those we love, we create some of our best memories there and it is not open to strangers.  And our online presence is similar, we like those we know, we change our preferences to only allow certain information to go to those we trust.

If I were to sell your minnesota home, and knowing that more than half of all homebuyers start their search online, and 90% of home buyers use the internet as some part of their minnesota home search, would you expect me to tap in to this group of people and take advantage of the most accurate analytics available?  ABSOLUTELY!  Say you have a 4 bedroom, 3 bath, 3 car garage, two story home in Plymouth, MN that is listed for $425,000.  The home is 3500 sq feet finished and is a perfect home for a new or growing family.  Based  upon Homebuyer profiles from National Association of Realtors, the most likely buyer of a home like this would be a buyer age 30-45 who is married or engaged with a college degree and currently lives within 10 miles of the home.  Families in our area most times head to the 'burbs when the kids start arriving......I know, I am one of them.  I am not saying this is the only type of buyer for this home, but it the highest likely buyer.  So, when a seller entrusts us to sell their home for top dollar, in the shortest period of time, we need to reach the best buyers fast.  We tailor our online social ads to the highest "preferred" demographic.  

On top of that, we utilize a new technology, that not only posts your minnesota property as an ad in front of prospective buyers on their social sites, but it also goes out to all of the top real estate agents social spheres as well.  Real Estate agents have been selling homes through agent networking for years, so we make sure our local professionals not only know about our new listings, but we also get our listing posted on their social timelines for their friends to see.  Call us today to talk about how we sell your home in Today's real estate market.

Zachary Adams | Realtor | Wright Sherburne Realty | 612-845-7890 

Courtesy of the Minneapolis Area Asociation of Realtors

How do you prepare your home to make it show as well as possible?  It is time to step back and look differently and unemotionally at your home. Look at it no longer as your home, but as a product to be marketed. Be aware of what you can and cannot change about your home. This knowledge will allow you to concentrate on those items that will bring the highest rewards.

First Impressions

The first thing a potential buyer sees is your home from the street. They call that first impression "curb appeal". Take care to:

• Remove any junk or clutter from the yard.
• Have a clean, crisp lawn, a bit of fertilizer makes for a greener lawn
• Trim shrubbery and hedges.
• Wash decks and porches, make sure they stained or painted.
• Clean and paint or stain your front door.
• All exterior lights should be operational and if a showing is scheduled for an evening, turn the lights on.
• Exterior windows should be clean and operational.
• Clean out gutters and downspouts.
• Walkways should be swept and free of snow or ice during winter.
• Make sure the garage door is closed.

Through Open Doors

Most buyers do not have vision. So help them. Present your home dressed in its best! Do not do anything expensive, such as remodeling. Here are some minor investments, which may have some major returns.

Paint - when it comes to preparing a house, painting gives you the best return for money spent.

Flooring - at the very least, all carpeting needs to be steam cleaned. Any worn, stained or foul smelling carpet should be replaced. Any flooring that is cracked or damaged, should be replaced, if possible.

Clutter -if something is not necessary for your day-to-day life, box it up and store it or throw it out!

Closets – closets need to be neat, clean, and organized.

Cleaning – the cleaner, the better.  Dusting, washing, waxing, polishing everything will always make a good impression.

Lights – clean the fixtures and make sure the bulbs work.

Windows – clean them, inside and outside, and replace any cracked windows.

Entry way:

• Clean and polish everything.
• Make sure it’s well lit.
• Make it clutter free.

Bedrooms:

• Arrange the furniture for the flow of traffic.
• Make sure its clutter free.

Living Room/Family Room/Den:

• Arrange the furniture for the flow of traffic, give the illusion of space.
• Remove ashes from fireplaces and woodstoves.
• Make sure all light switches work.
• Clean the drapes
• Polish, mop the floors

Storage Areas:

• Basement, Garage, Attic
• Remove all junk and clutter (do you detect a theme?)
• If the basement is damp or musty, try a dehumidifier.
• Make sure these areas are well lit.

Kitchens are under close scrutiny:

• Clean the exterior of all appliances, including the stove hood filter.
• Clean counter tops and cabinet faces, the shiner, the better.
• Clutter free
• Remove magnets and messages from the front of the refrigerator.
• Clean floor, consider new if it is worn.
• If you have ceramic tile, make sure the grout is clean, there are whitening products.

Bathrooms are also extremely important:

• If faucets drip, repair or replace them.
• Remove stains from all fixtures.
• Make sure all lights have the highest wattage safe for each fixture.
• Put out fresh, clean towels.
• Check ceramic tile, make sure the grout is clean.
• Remove any evidence of mildew.
• Make sure drains are clog free.
• Show doors should sparkle.

Finishing Touches

Most of the time you will be given at least a couple of hours notice before showing your home. Before you show your home add these small but important finishing touches. Your home will then put its best foot forward!

Light and Bright – whether day or night, a lit house gives a “welcome home” impression. So turn on all the lights, indoor and outdoor. Open all curtains and drapes to let in maximum light. Your home looks more cheerful and it also prevents harsh shadows.

Out of Sight – prospective buyers may feel like intruders if you are home during a showing. Allow the Realtor the opportunity to speak freely with buyers and emphasis your home’s best features. If possible, take a walk, visit the library, go shopping or take the kids to the park. If you cannot leave, try to remain out of sight and do not accompany the buyers from room to room.

The Scent of Success – Scented sprays are too obvious and may be found offensive. For a pleasing fragrance, add a few drops of vanilla extract on a stove burner or boil water and add some cinnamon. Refrigerator cookies are quick and easy to bake, as well as lighting a scented candle prior to a showing. Both will make your home more attractive.

Waste Not – Empty the trash in the kitchen and any other waste baskets before a showing. Garbage does not send a positive message, even in small amounts.

Comfort Counts– Make sure the thermostat is set such that the house is at a comfortable temperature. Turn off the television and turn soft, melodious music on.

Pets – It is best to try and take your pets with you while your home is being shown. If that is not possible, at least keep them outside. Animals under foot will put a damper on a showing.

Hope this helps!

Zachary Adams | Realtor | Wright Sherburne Realty | 612-845-7890

Today’s buyer is well informed and price sensitive. A property that is priced over the market can often deter buyers who are serious about finding a property. If the property is under-priced, it most likely will sell quickly--to the detriment of your net proceeds. Care and research should be taken when establishing the original listing price.  There are many factors that will affect the selling price. The following should help you determine the price you can expect to receive:

• What are the prices (listing and selling) of similar homes in your area?
• What is the size, layout and condition of your home?
• What is the location of your home, are you in a desirable area that is in demand?
• Does your home have amenities that are currently popular in the marketplace?
• What is the estimated appraisal?
• What is the experience of your Realtor?
• Is it a buyers' market or a sellers' market?

Many people don't sell many homes in their lifetime, but if you select a qualified and experienced real estate agent, you are one step ahead of your competition.  Call me today for a free market consultation if you are thinking of selling your home in Minnesota.

Zachary Adams | Realtor | Wright Sherburne Realty | 612-845-7890

Homes for Heroes® is a community-minded company whose purpose is to provide real savings and discounts for workforce heroes who are buying and selling a home.  Our founders looked around and saw that many of the important people who made it possible for us to live in our communities could not afford to buy homes in our communities.

The Homes for Heroes® program was launched after the tragedy of September 11, 2001. The discounts are a way to say Thank You to the people who work every day to make our community a better place to live!

Workforce heroes include: Military Personnel (past and present), Firefighters, Law Enforcement, Teachers(K-12) and Health Care Professionals.

Here are the Savings we offer Heroes using the Homes for Heroes program (for Buyers AND Sellers):

REAL ESTATE Savings:

1) 25% REBATE on the gross brokerage commission.  Example: If you buy or sell a $200,000 home, your rebate will be approx. $1300.00, when you work with a Homes for Heroes Real Estate Agent.

Loan Savings:

2) .375% discount on your loan origination fee.  Example: Savings of between $375 - $1,125 on average, when you work with the Homes for Heroes Lender.

Other Savings:

3) Closing Fee discounts with HFH preferred closing company

4) Discount on home inspection fees with HFH preferred inspectors

5) Additional discounts through participating local businesses

When you take advantage of all of the collective discounts, it can add up to thousands of dollars in real savings!

If you have questions about this program, please give us a call at 612-656-9647 or hit the Contact Us button on the top of this page.  We look forward to serving you.