Building New or Remodeling Your Current Home? READ THIS FIRST

We all like NEW!

Upgrades are a good thing but only if they are consistent with keeping your home valued with the current market rate.

First, maintenance and upkeep are different than upgrades.  Fixing things that are failing, broken or worn out are just part of home ownership. Upkeep maintains value and if your home is not properly maintained, you may see a decrease your value over time.  Also, if all the homes in your neighborhood are starting to remodel with updated fixtures, countertops, paint and flooring, you should consider doing the same.

Have a licensed agent who knows your area consult with you prior to putting in some hefty upgrades. You may decide to re-think some of them. Here's why:

• Unless you plan to stay in your home forever, consider your major upgrades before you do them as most upgrades do not get back what you put into them if you decide to sell.
• Know what the current market value is for your home.  If you put in upgrades that you feel bump your value up way over what the neighborhood can bear, understand that you most likely will not see this investment returned.
• Realize that situations do change in our lives and what we planned on doing may very well have to change quickly. Long term investments should be carefully considered.  

After all, even if your home is listed at your desired price and receives an offer, if it doesn't appraise we will be re-visiting the price at some point.  Even if a cash offer came in, most buyers are savvy and would still not desire to pay way over market value in any neighborhood.

Are you planning a move within the next five years?  Now is the time to call for a consultation. Having your "ducks in a row" will keep you on track!

Read more:
Tips for buying NEW construction homes

Are There Mistakes in Your Credit Report?

If there are mistakes in your credit report, it could be costing you money. 

Credit errors can lower your credit score and in turn increase the interest rates you pay on loans and lines of credit as well as increase your insurance costs.

Here are some things to think about and some things you should do immediately to verify your credit report.

First, get your credit report.  The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. Visit annualcreditreport.com or call 1-877-322-8228.  They will need your name, address, Social Security number, and date of birth. 

1) If your credit report error involves identity theft (you see credit card accounts you didn't open or loans you didn’t take out), call each of the three credit reporting bureaus (Equifax, Experian, and TransUnion) and ask them to put a fraud alert on your file. Then, fill out a Federal Trade Commission identity theft report and call the police to report the theft. The FTC and police reports help prove you had your identity stolen.

2) If you find errors on your report, complain.  The squeaky wheel gets the grease so don't let up. Grab a note book and a folder and get started disputing errors on your credit report. Call you credit card companies, your loan and mortgage companies and the credit bureaus.  Keeps notes. You are going to need proof of the errors so expect to provide copies of payments, receipts, dates of phone calls, etc)   Ask anyone that disagrees with you to provide evidence as to why.

Credit Bureau contact info:

Equifax:1-800-685-1111; equifax.com

Experian: 1-888-397-3742; experian.com

TransUnion: 1-800-916-8800; transunion.com

3) If all your efforts get you nowhere and you have your folder and notebook full of proof, here are three additional steps.

• Consider contacting your state attorney general’s office to see if they can offer any guidance.
• File a complaint with the Consumer Financial Protection Bureau. The bureau will look into your error and report back on what it finds.
• Complain to the Federal Trade Commission 1-877-FTC-HELP (1-877-382-4357)

Read More:
Mortgage Information |  Finances  |  View Homes for Sale  |  Find A Real Estate Agent  |  Random Videos and Information

Is it a good idea to buy a new construction home?

Five reasons to buy a new build home

Like most of the real estate industry, there’s been major growth in new home construction. Here are five reasons to consider building a brand new home.

• Design your dream home 
• When you’re in on the home building process from the very start, you get to pick the floor plan that ‘s perfect for you and your family. It’s the best way to get the exact home you want.
• Save on energy costs
• While older homes can have inefficient heating, cooling, insulation, and appliances, new homes are typically built for energy efficiency from the very start. Your utility bills could be dramatically lower.
• Community amenities
• If your new home is part of a planned community, you can take advantage of amenities like swimming pools, fitness centers, and other recreation areas that might not be available otherwise.
• Fewer worries, fewer surprises
• With a new build, it’s less likely that you’ll run into maintenance and repair issues compared to what you might experience with an existing home.
• Enjoy it from the start
• No need to endure the frustration that might come with a fixer-upper. With a new home, you can enjoy your new space the day you move in.

Click HERE to read more about New Construction homes?

Looking for reasons to think twice before choosing to build a brand new home? 

Want to search for new homes? Visit this LINK to search.

Here are some additional Tips for Buying New Construction.

Why You Might THINK TWICE about Choosing a New Construction Home

Five reasons you may hesitate to buy a new build home

Like most of the real estate industry, there’s been major growth in new home construction. Here are five reasons to think twice before choosing to build a brand new home.

• Logistics
• Can you get the move coordinated? If you already have another home, do you have a place to go if yours sells before the new home is complete? Do you qualify for the new home without selling your current home?
• Limited negotiating room on price
• The advertised price is based on certain features - usually the entry level pricing but what you see in the model is usually all the upgrades.  Many buyers that choose new construction experience a bit of heartbreak when they have to settle for less than what they saw in the model or realize there are features they want but can't afford.  
• Headaches
• Are you ready for all the builder meetings and decisions that come with planning and building a new home? These meetings often require weekday appointments. What if there are unforeseen changes or delays?
• Cookie-cutter design. 
• Frequently less character, or homogenous design. Often you will pick a from the same selection of model designs that your neighbor chose from but in slightly different color combinations.
• Potential for homeowners association dues. 
• Frequently, new neighborhoods have a homeowners association or covenants that can put limits on how you use your property and may include dues.

What some great reasons to buy new?  Watch for an article in the next week! Five Reasons you SHOULD build a new home!

More Tips for buying NEW construction homes.

Free real estate app. Go get it!

It is just this easy.
Go to your App Store or Google Play and search KELLER WILLIAMS REALTY
Download the App
Enter My Code: KW1Z62GIH as your local agent so you can email me directly from the app.

Website: App.kw.com/KW1z62gih

Homebuyer Checklist: Easy as 1,2,3

Many buyers "just know" when they find the right home because they have done their research. And while it’s necessary to read up on everything you can before you begin searching, it’s also important to have a quick-to-access home buyer’s checklist so be sure to print this out and keep it handy or pull it up on your smart phone.

One: The Home

Things to look over and ask about for each house that you look at:

• Year built (Lead Paint?)
• Size/Square footage
• Number of bedrooms
• Number of full baths
• Number of half-baths
• Kitchen layout/size/storage
• Condition of walls (interior) 
• Closets/storage space
• Basement – any strange odors? mildrew or mold?
• Fireplace
• Exterior appearance (condition of outdoor walls, overall appearance)
• Age and condition of roof
• Front and back lawn areas
• Deck/porch/patio
• Fence
• Garage
• Windows/screens
• Utilities: Gas, Electric, Cable TV/Internet
• Private Well? Septic?

Two: The Neighborhood

Things you will want to ask about, look into, and research about the neighborhood you move into:

• Appearance/condition of neighboring homes
• Demographics of the neighborhood
• Parking
• Safety
• Police and Fire Protection
• Pet restrictions
• Parks/recreational facilities
• Traffic issues

Three:  Community

It’s important to live in an area where you not only love your house, but you feel at home in the community. Here are some things you’ll want to ask about:

• Schools (Reputation of school district, Private school locations (if you’d prefer), Age/condition of schools and buildings, Test scores of current students, Quality of teachers and educators, Play areas/playgrounds, Class sizes, Curriculum, School safety)
• Religious community centers (churches/synagogues/etc)
• Shopping centers/grocery stories
• Proximity to your place of employment
• Hospitals
• Doctor and dentist locations/quality
• Parks and recreation
• Restaurants
• Entertainment (movie theaters, shopping malls, etc)
• Airport
• Proximity to highways
• Public transportation – bus? metro?

Ready to search? http://sarahmarrinan.kwrealty.com/search/

Connect with me!

Where can I find tons of information on a City?

Want to know too much information about a certain city?

by +Sarah Marrinan - Keller Williams Premier Realty 

Look no further!  Visit: http://www.city-data.com/  Here you can research any city, zip code, or neighborhood for any reason!  If you want to register, you can even join the forum discussions and add your input. Score.

Yes, please also use the city website for the area your are interested in and contact the city for the most current accurate information but this website is cool for those who like lots of facts, graphs and numbers.

Always ask a professional to help you evaluate this data if using it to make a major decision; like selling a house. (I'm here for ya!)

Maybe you have found the areas you are interested in moving to, call me for help buying your new home or start by becoming a Market Insider and get great local market info!

(I have no affiliation with City Data.  I make no warranty for the accuracy of the information you will find on the website or any other websites I have shared.)

You may also be interested in:

  

Start dreaming!

A Buyer's Emotional Rollercoaster

Buying a home is tied to a lot of emotion.  
It's always tied to a life change and change can be extraordinarily stressful for some people and exhilarating for others so it's only natural to go through a range of emotion when looking for that perfect home.

As with many big milestones in life, home buying is initially more of an emotional commitment than it is a financial one. Sure, you're saving up thousands of dollars to fund the down payment and yes you will be paying hundreds of thousands of dollars in monthly payments which makes it sound like primarily a financial decision. But the bottom line is that most home buyers purchase first from their emotions, and then justify the purchase with their wallets. You may have set of criteria but then just by chance you see a house (or condo or farm) and your heart skips a beat! It LOOKS PERFECT! But then, you realize it doesn't meet some of your criteria... and you still buy it!

Are you ready to buy a house?

How do you keep your emotions at bay in the heat of the process (as much as possible anyway) so that you will be satisfied with your emotional choice?  The best answer is to do some research and have a plan.

Know how much you need to have for downpayment and moving expenses. Talk to a lender about your financing options, downpayment and closing expenses. Ask a real estate agent to help you make a list of potential moving expenses. Get a pre-approval letter if you will be financing your purchase.  Have a your current financial statement available for proof of funds if you are buying on cash.

Think about your motivation for the move. Where are you moving to?  Why that location?

Decide on your time frame.  When do you want things to happen?  What if your house doesn't sell? What if your house sells too fast? Moving can take months of planning!

Understand the challenges in the current market.  It's easy to be let down when you can't find a house in the time frame you would like or can't get the house you want in your price range... but it happens.

Get prepared to move.  Pack and clean your current home. *Do NOT pack away your tax records and financial information. You will likely need this info for the mortgage company.

Hit the internet, scour the phone book, ask your family and friends or check with your agent; however you choose to do it, get help. Research neighborhoods, schools and anything else important to you.

Build a team. Inspectors, handymen, cleaning companies may be an added expense but they will come in handy and it's always less stressful when a professional does it than trying to get everything done yourself.

If you have done your research, you might make an offer on one of the first houses you actually go out to see!  You will know what is out there in your price range and it when that "one" comes up, you will jump on it!

There will always be hiccups along the road but if you have spent time weighing your options and preparing, you can tackle them!

Need help getting through this? Call me!

It's a great time to start researching your lake home purchase!

What?  It's JANUARY! The lakes are FROZEN!

MN DNR Lake Finder

Exactly.  Holiday hype is probably winding down.  If you are into ice fishing, you might be spending some time on the lake but otherwise, why not be prepared to jump on the perfect lake home in April so you have the whole summer to use it!  That means it's the perfect time to do your pre-shopping research!

Start by considering the type of lake you desire:
Natural Environment lakes usually have less than 150 total acres, less than 60 acres per mile of shoreline, and less than three dwellings per mile of shoreline. They may have some winter kill of fish; may have shallow, swampy shoreline; and are less than 15 feet deep.
Recreational Development lakes usually have between 60 and 225 acres of water per mile of shoreline, between 3 and 25 dwellings per mile of shoreline, and are more than 15 feet deep.
General Development lakes usually have more than 225 acres of water per mile of shoreline and 25 dwellings per mile of shoreline, and are more than 15 feet deep.
Unfortunately, not all Minnesota lakes are in the Shoreline program and those lakes will be classified in the MLS as, “Not Applicable" so be sure to always have your agent include these in your search just in case.

Something to keep in mind is where these types of lakes will be located.  If you are shopping the in the Twin Cities, it is generally substantially more expensive to find a home on a lake than if you are in more rural areas of Minnesota.  Small, older seasonal cabins/homes may have starting prices over $200,000.

Need help?

 

Pre-Approved or Pre-Qualified?

When a potential client calls for a loan, many banks just take some basic info about where you live and work and they may run a credit report.  They will then take a brief look to make sure that the income info provided offsets the monthly debt including the new house payment at an acceptable level (debt-to-income ratio).  This would constitute a basic pre-qualification.  This will help you to know what homes are comfortably in your price range.

Get Pre-Approved for Your Loan!

In order to know what price home you will get loan approval for you need to be pre-approved.  The pre-approval process is much more lengthy. (See here for details.)

Most people want to know the monthly payment when deciding what price range they will be looking in for a home and online loan calculators don’t tell the whole story. Your payment is impacted dramatically by your choice of a loan program, how much you have for a down payment, if you will need to pay mortgage insurance (for loans with less than 20% equity or down-payment) and the interest rate.

The financing you choose will often largely impact the homes you look at.  FHA and VA loans require properties to be in generally good condition.  Maybe you want to purchase a home you can renovate and so you choose a loan such as a 203k.

As part of the pre-approval process, the lender should give you a sheet showing all your lender fees in clear terms.   If the lender works closely with your real estate agent, any additional real estate fees can also be estimated upfront. This sheet should help you understand what your pre-paid expenses and closing costs will be so you can plan accordingly.   If you want to have the seller pay some of your closing costs (this is fairly typical) then your agent has to know what those costs are to properly formulate an offer.

Need a referral to a good lender?  Call me!


Need answers to your mortgage questions?  Click here: http://www.curt-smith.com/

Stay or Go? Repair or Renovate?

Repair What Needs to be Fixed!

The renovations that will yield the most value for your home are repairs. Focus on fixing the areas of your house that are in desperate need of attention from a contractor or handyman. According to an article released by Realtor.com, you will be more likely to get the best value from handling repairs than any other renovation.

Whether you are planning to sell or stay in your home, handling repairs is most certainly worth the effort. Examples of repairs that go a long way include fixing a leaking roof, replacing broken kitchen tile and having an electrician rewire a faulty outlet. Even the smallest of repairs can increase your home value and prevent issue with selling your house.

Need help evaluating what needs repair?  We can help.  We can walk through the home with you or better yet, refer you to reputable home inspectors.

Let me know what I can do to help!
www.kw.com/kw/agent/call-sarah-first

More than 50% of the way to housing recovery!

This just in from the Trulia blog!

Halfway Home: Housing Recovery Crosses 50%

Jed Kolko, Chief Economist, December 21, 2012


Each month, Trulia’s Housing Barometer charts how quickly the housing market is moving back to “normal.”  They summarize three key housing market indicators: construction starts (Census), existing home sales (NAR), and the delinquency-plus-foreclosure rate (LPS First Look). For each indicator, They compare this month’s data to (1) how bad the numbers got at their worst and (2) their pre-bubble “normal” levels.

In November 2012, home sales saw strong increases, and the delinquency + foreclosure rate held steady–both signs of market improvement. However, new construction starts declined.

Hurricane Sandy appears to have lowered construction (and sales, to a lesser extent) in the Northeast. Average monthly construction starts were 14% higher nationally in October and November – the months affected by Sandy – than in the previous four months, but 5% lower in the Northeast. Average monthly home sales were 7% higher nationally in October and November than in the previous four months, but just 3% higher in the Northeast.

• Construction starts dipped in November but remain strong. Starts in November were at an 861,000 annualized rate, down 3% month-over-month and up 22% year-over-year. For the past three months, construction starts have remained solidly above 800,000–the highest level since September 2008. Nationally, construction starts are 37% of the way back to normal.
• Existing home sales rose once again in November. After climbing in October, existing home sales rose 6% month-over-month to 5.04 million in November–the highest level since November 2009. Sales are 73% back to normal. Even better, “distressed” sales (foreclosures and short sales) represent a declining share of overall sales, making way for more “conventional” home sales.
• The delinquency + foreclosure rate maintained a new post-crisis low. In November, 10.63% of mortgages were delinquent or in foreclosure, down a hair from 10.64% in October. The combined delinquency + foreclosure rate is at its lowest level in four years and is 41% back to normal.

Averaging these three back-to-normal percentages together, the housing market is now 51% of the way back to normal, compared with 28% in November 2011. Trulia’s Housing Barometer has jumped five points in each of the last two months. Does halfway back to normal mean the glass is half-full or half-empty? The half-empty view is that our three housing measures hit bottom (on average) in 2009, so it’s taken the market a long time–three years–to get to the halfway mark. But the half-full view is that halfway back to normal is better than anyone –myself included–predicted for 2012 at the start of this year.

Contact me for help with all your real estate buying and selling needs!