Selling My Parents House

Is your parents' house an asset or a liability?

Many times as our parents are aging we think about the logistics of who will take care of them, is their will/estate planning in line, etc and of course we go through a series of emotions about the potential of losing them.

Something that is often over looked or pushed aside is their home. We often forget that maintenance gets harder as people age, physically, financially and even mentally (did I change the furnace filter?). Not only do homes that aren't maintained deteriorate faster, the plummet in resale value.

What can you do about it? Make a list and prioritize. Here is a list from Bob Vila to get you started or you may visit my (longer) list by clicking HERE.

So what do you do if your parents have already moved out and you are getting ready to sell their house?
Go through he whole maintenance checklist now or hire an handyman to do so.  You will want to find any problems before a potential buyer does.  What may only cost you $100 to fix will look like $1000 to a potential buyer and hurt you when it comes to negotiating the best price for the house.

Once you have had the home maintenance reviewed and completed, it's time for cosmetics.

The cheapest thing to do is CLEAN.  Cleaning often includes de-cluttering.  Tis best to have have only a few key pieces of furniture in a house.  Buyers often have a hard time seeing past all the "stuff" in a house.  You may want to consult a professional if this is overwhelming to you.

Once you have everything clean, you can evaluate for updates that will provide the best return.

Removing wallpaper and painting a neutral color can make a huge difference in a home that is otherwise out of date. You may need to hire this one out but it's often worth the return on your investment.

Other items you can do to quickly update a home are:

• New cabinet hardware
• New light fixtures
• New appliances
• New Carpet and Linoleum (especially if it is very worn or a color that is 20 years out of date)

Imagine this room minus the curtains and with fresh paint and carpet!

Paint and carpet are two things that you will see a lot of banks doing with foreclosures.  Why would they make this investment on a property they most likely have already lost money on?  Because it has proven to be a good return on their investment in both the price they get for the house and the amount of time it takes to sell.  Often they will also add a low cost set of new kitchen appliances if they were missing or in poor condition.



Are you ready to sell or need referrals to help get these things done?
Let me know!

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.

Do Seller's Have Closing Costs?

Do Seller's Have Costs Associated with Selling?

by +Sarah Marrinan - Keller Williams Premier Realty 

YES.

OK, so what are they? Here is a list of home sale related expenses that sellers may incur but don't let this list intimidate you.  Not all items apply to all sellers. You really need to consult an agent to decide what expenses are applicable to you.

Potential Seller Expenses at Closing

Pay-off Present Mortgage

Interest Adjustment

Pay-off 2nd Mortgage

Pay-off Home Equity Line

Mortgage Courier Fee

Seller Paid Buyer Closing Costs

VA Funding Fee

VA Closing Fee

FHA Service Fee

1 Month Association Dues (if HOA)

Association Letter Prep. Fee (if HOA)

Special Assessment Search

Special Assessment Levied or Approved

Future Pending Special Assessments

Brokerage Fee

MLS Buyer Broker Portion

Partners Title Closing Service Fee

Broker Retainer Fee

State Deed Tax

Other Title Charges

Estimated Recording and Transfer Fees

Balance of Real Estate Taxes Due

Homeowner's Warranty

Well Disclosure Filling Fee

MN Conservation Fee

Septic Compliance

Water Test

Some services that may or may not be included in your brokerage fee: Home inspection, Home Repairs/Handyman, Staging, Cleaning, Landscaping, Professional Photos, and Movers.

And we can't forget, some people will have capital gains tax... http://www.irs.gov/taxtopics/tc701.html

Need a list of expenses specific to you?  Call me for a free consultation. (Hint, my contact info is in the side column of this blog.)

See Also:

How To Save Money For Buying a Home | Tips for Selling Your Twin Cities Home | Four Horrible Real Estate Mistakes To Avoid | Housing Market Updates

Sell Now or Wait?

Are you timing the market?
By +Sarah Marrinan

Generally, though agents don't like to admit it, the housing market slows at the beginning of winter, and doesn't pick back up until the spring market begins.



This year, experts believe that our local market might keep booming straight through the coldest months.


Why?

Mortgage rates are low

Last spring, as buyer demand soared, rates began to slide up. In September, the Federal Reserve committed to buy $85 billion a month in bonds – a move that should keep rates low for buyers in the near future.

Rents are rising

Despite a major boom in multi-family housing developments, rental prices in the Twin Cities continue to rise. Nationwide, vacancy rates are at an eleven-year low of 4.5 percent; in the Twin Cities, the vacancy rate is at 2.5 percent. As mortgage payments begin to rival monthly rental rates, frustrated renters are encouraged to look into their homeownership options.

Sellers are finally in a position to sell

Median sales prices were up 11 percent in October 2013 over the previous year, and days on the market decreased 27 percent. As more and more sellers come out from underwater and see buyers competing over quality listings, they are entering the market. New listings were up 15 percent in October, showing seller confidence is increasing, too.

Whether you’re buying, selling or considering both, let us help – no obligation and no expectation. Reach out today to talk about mortgage rates, your home value and more.

Connect with me and get more great content!

See more topics in this blog:
http://livingtopics.blogspot.com/2011/12/topics-in-this-blog.html

9 Reasons to List Your Home for The Holidays

Need a reason to put your house on the market now versus waiting until the spring? Here are nine of them!
By +Sarah Marrinan

9. You can sell now and delay closing or extend occupancy to keep you in your home until next year when you will have more buying choices of your own! 
8.  Many homes and yards photograph beautifully with snow cover.
7.  Less competition! Buyers have fewer homes to choose over the holidays giving you the opportunity to get more money for your home.
6. January is traditionally the month from place to begin new job since transferase cannot wait until spring to buy you need to be on the market during holidays to capture that market!
5. Some people must buy before the end of the year for tax reasons!
4. Buyers are more emotional during the holidays so they're more likely to pay a better price for your home.
3. Houses often show better when they are decorated for the holidays. 
2. Since the supply of listings dramatically increases in January there will be less demand for your particular home and more competition! Less demand means less money!

And the number one reason to list over the holidays is...

1. People who look for homes during the holiday season are the most serious buyers!

Even though your house will be on the market you still have the option to restrict showings during the six or seven days around the holidays.

Five Things You Must Know About the Current Housing Market

Even if you are not thinking about buying or selling real estate right now, it affects our economy so it's best you have an idea where things stand. 
by +Sarah Marrinan - Keller Williams Premier Realty 

Know this:

1) 2010 is recognized as the "bottom of the market" even though some areas continued to fall in 2011 and even 2012.  The recovery is patchy. Know your LOCAL market.

2) Lenders are cautious. Lending standard are overly strict and underwriting standards are tight making it hard for those with "less than perfect credit" to obtain a mortgage. Plus, banks own land that was foreclosed on and they are not eager to sell it for a loss. (The same can often be said for foreclosed homes.)

3) Mortgage rates are at historic lows. Most loans are currently backed by a government housing agency. The feds are keep rates low and this won't go on forever.

4) Real Estate flippers and investors are "at risk" if mortgage rates jump.  The higher the interest rates, the less people can afford to pay for housing.

5) Foreign buyers. Say what? Yes, foreign investors taking interest in U.S real estate shows faith in our market recovery but this is also helping to drive prices up for Americans.

What does this mean if you are thinking about buying or selling?
Buyers: You can afford more now while prices are still relatively low and interest rates are unbelievably low.
Sellers: If your market is recovering, you have better negotiating power AND the likely hood of your home selling is high!

Caution on both sides of the deal: Appraisals.  This is not just limiting in price but also condition. (See #2.)

Want to talk about it? Call me!

sources:
 http://www.usnews.com/news/blogs/rick-newman/2013/05/03/5-reasons-the-housing-recovery-remains-wobbly
 http://realtormag.realtor.org/daily-news/2012/09/17/analysis-blames-slow-recovery-tight-credit-market

disclaimer: I am not a financial consultant, tax attorney, etc.  Please seek those professional services if you need them.

A Seller's Emotional Roller Coaster

Selling 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 preparing to sell a home and having your home on the market.

How do you keep your emotions at bay?  The best answer is have a plan and be prepared and organized.

Think about your goals and motivation for the move. Why are you moving and where are you going?

Know how much you owe on the house and how much you need to make your move. Ask a real estate agent to help you make a list of selling and moving expenses. Talk to a mortgage professional about your financing options.

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!

Get your house prepared.  Don't act like you haven't seen the shows on TV where they do home makeovers. Anything you don't NEED to live should be sold, donated or stored off-site.  Less is more when selling.  Need help? A good agent will know a good home stager.  *Do NOT pack away your tax records and financial information.  If you are buying another home, you will likely need this info!

Get your maintenance and repairs done and have a thorough cleaning.  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. Inspectors, handymen, cleaning companies may be an added expense but they will help your home sell faster and for more money... and it's always less stressful when a professional does it than trying to get everything done yourself.

Understand the challenges of selling a home in the current market.  It's easy to be let down when you house doesn't sell for as much as you would like or in the time frame you would like.  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!

Moral of the story? Don't go it alone! You need to lean on friends, family and probably most importantly a few good professional. :)

2012 MN Seller Profile

Profile of MN Home Sellers

In the MNAR eResource newsletter today, Christopher Galler, CEO of Minnesota Association of REALTORS, reviewed highlights from the 2012 Profile of Home Buyers and Sellers.  Here are some items he mentioned.

Home Sellers and Their Selling Experience

• The typical national seller lived in their home for 9 years. The median tenure has increased in recent years. In 2007, the typical tenure in home was only 6 years.   In Minnesota, the median tenure is 10 years.
• 88% of sellers were assisted by a real estate agent when selling their home nationally, and 90% were assisted in Minnesota.
• Nationally, recent sellers typically sold their homes for 95% of the listing price, and 60% reported they reduced the asking price at least once.   In Minnesota, recent sellers sold their homes for 94% of the listing price and 57% reduced the asking price at least once.
• 40% of sellers offered incentives to attract buyers nationally, most often assistance with home warranty policies and closing costs.  In Minnesota, 40% of sellers offered incentives as well.

For-Sale-by-Owner (FSBO) Sellers

• The share of home sellers who sold their home without the assistance of a real estate agent was 9% nationally. 33% of those sellers knew the buyer prior to home purchase.  In Minnesota, the share was 8% and 63% knew the buyer.
• One-third of FSBO sellers nationally took no action to market their home, and 60% did not offer any incentives to attract buyers.  These numbers are similar to Minnesota, where 55 % of FSBO sellers took no action to market the home and 60% did not offer any incentives.

Financing the Home Purchase

• On a national level, 87% of home buyers financed their recent home purchase. Among those who financed their home purchase, the buyers typically financed 91%.   In Minnesota, 90% of buyers financed their recent purchase and 91% of the purchase was financed.
• The share of first-time buyers who financed their home purchase was 95% compared to 81% of repeat buyers, nationally.  In Minnesota, that share was 95% of first-time buyers and 86 % of repeat buyers.
• More than a third of home buyers nationally reported they have made some sacrifices such as reducing spending on luxury items, entertainment or clothing.  This also holds true in Minnesota.
• Nationally, 23% of buyers reported the mortgage application and approval process was somewhat more difficult than expected and 17% reported it was much more difficult than expected.  These numbers are roughly equivalent to the Minnesota numbers, where 27% of buyers reported the process was somewhat more difficult than expected and 10% reported it was much more difficult than expected.

"Home buying and selling remains an important segment of the national and local economies, especially due to the housing sector’s unique power to revitalize the economy during challenging times.  With historically low mortgage rates, buyers and sellers continue to have opportunities to trade up, trade down, relocate or purchase a second home.  In Minnesota, First-time buyers are now 41% of the market, are discovering and capturing the benefits of homeownership, which contributes to significant wealth accumulation, among other financial, social, and personal rewards.

Consumers rely on the experience and expertise of real estate professionals to assist when buying and selling a home. Working in an extremely competitive environment, agents and brokers provide high levels of service to meet the varied needs of home buyers and sellers. The value that consumers place on the services offered by real estate professionals is reflected in the large majority of both buyers and sellers who would use their agents again or recommend them to others." - Christopher Galler

Did you know that my team, The Goerss Home Team, was the #3 KW real estae team in the entire Midwest in 2011?  Call me today! We can help you take advantage of the great opportunities in today's real estate market!

The Seller's Real Estate Catch 22

How To Avoid Getting Stuck with TWO Homes...or none at all.

The Problem
We’ve all heard the old saying about being caught between a rock and a hard place.  Well, unfortunately, that’s where most homeowners find themselves when they decide to move from one home to another.

The Real Estate Catch 22
You see, if you buy before selling, you could run the risk of owning two homes.  Or, just as bad, if you sell first, you could end up homeless. That’s what is known as the Real Estate Catch 22, and for thousands of homeowners, it’s an extremely stressful position they find themselves in.

How to Avoid the Real Estate Catch 22
This financial and emotional tightrope is one many homeowners feel they have to walk alone.  However, you should seek out agents offering specialized programs that can eliminate the stress and worry associated with selling and buying another home.

THE DILEMMA
The biggest dilemma when considering purchasing another home is deciding whether to buy first or sell first.  Either way is risky because you could end up owning two homes or no home at all. Let’s face it, the real estate market has become a tough environment for buyers and sellers alike. The fact is that it’s more difficult to get homes sold today and therefore it’s essential that real estate agents look for new and innovative ways to meet the demands of the market.

THE SOLUTION
A new and innovative program that some agents offer actually guarantees the sale of your home and takes away all of the worry and stress associated with selling and buying another home...

Want the details? Call me now for a Free, No Obligation Home Evaluation!

Sellers: Read about 8 Steps to Success or Search for Your New Home


Before starting the house hunt, sell my house, should I buy a house now?, should I wait to sell my house?, tips for selling your house

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! 

Is now a good time to buy a house?

Though no economists agree completely, the general consensus is ABSOLUTELY buy a house now if you can afford one.

 This week in an article from CNN Money:
"Barclays Capital put out a report recently forecasting that home prices, which fell by more than a third after the housing bubble burst in 2007, could be back to peak levels as soon as 2015.
"In our view, the housing market had undergone a dramatic over-correction during the prior five years, resulting in pent-up demand for housing purchases that would spark a rapid rise in housing starts," said Stephen Kim, an analyst with Barclays, in a note to clients.
In addition to what Kim sees as a big rebound in building, he's bullish on home prices, expecting rises of 5% to 7.5% a year."

Now, 7.5% for 3 years won't get the market value all the way back up to what we paid for our house in 2005 by the year 2015 but it would be close.

So if you are a first time home buyer, grab onto to a record low interest rate and rush to your favorite agent!

If you need to sell your house to buy another one and you would like to wait for a bit of recovery, just remember, it won't just be your house increasing.  You can afford much more house now than you will be able to in 3 years and these interest rates can't last forever!

Sarah Marrinan
Realtor®
The Goerss Home Team - Keller Williams Premier Realty
www.CallSarahFirst.com
Direct: 651-964-0289

Luxury Home Sales Increase!

Are you looking to sell a luxury home in MN?  

The time is NOW!  Call Today!