Friday, May 29, 2015

Who would want to be without one?

When the 75 year old man who had been widowed four times was asked why he was getting married again, he said “for the little bit that they eat, I wouldn’t want to be without one.” house-umbrella.png.jpg

In a torrential rainfall, you wouldn’t want to be without an umbrella. It is also understandable that when purchasing or selling a home, more and more people want an agent involved.

NAR’s Homebuyers and Sellers Profile states the trend in owners trying to sell their home themselves has declined over the past ten years from 14% in 2003 to only 9% in 2014. Similarly, the number of buyers purchasing directly through an owner has decreased from 2001 to 2014 from 15% to 5%.

It is natural to think that a seller wants to get the highest price for their property while the buyer wants to pay the least possible. Negotiations may be the most valuable service provided by an agent because of the clear conflicts of interest such as the price, terms and condition.

Other areas of contention that could affect a party without an agent:

  • The real estate agent who represents the other party
  • The attorney who represents only one party
  • Home and pest inspectors regarding condition
  • The buyer’s lender regarding terms
  • The lender’s appraiser regarding value
  • The title company in an effort to satisfy challenges to clear title
  • Municipal authorities to mitigate code violations

 Even when there are two licensed agents involved, there could be a question of representation. This is a discussion that buyers should have with a real estate professional before looking at houses.


Friday, May 22, 2015

You've Got Money!

Imagine that after checking www.SSA.gov to see what you can expect when you retire and estimated what your minimum required distributions from your retirement accounts will be, you’ve discovered that you’re not going to have enough retirement income to cover your living expenses. Youve got money.jpg

Ideally, it would be perfect if the extra money you need would just come to your mailbox each month with the same certainty as your social security or retirement income.

Rental homes are a popular choice for passive income because they are an investment that most people understand based on their experience owning a home. They’re easy to manage and the rents should keep pace with inflation.

Mortgage loans for investors are available to investors with good credit and at least 20% down payments. While 30 year terms are the most common, some investors wanting to have the home paid for by retirement may choose a 15 or 20 year term.

A tried and true strategy is to choose average or slightly below average priced homes in predominantly owner-occupied neighborhoods. This will appeal to more prospective tenants wanting to live in good communities and should provide a higher level of revenue.

When an owner has a good property with a good tenant, the income is as predictable and convenient as going to the mailbox each month. To learn more about rental homes, contact your real estate professional.


Friday, May 15, 2015

Live the Dream

Consumers are more easily living the American Dream of owning a home because of the incredibly low mortgage rates. Today, most buyers can get a much lower rate than their parents or grandparents got on their first home. American dream2.png

In a recent housing survey, FNMA released information about consumers' thoughts on the current market. Almost two-thirds would rather buy than rent and believe that now is a good time to buy. Half of the respondents expect rent and home prices will go up.

Top Ten reasons to move the dream to reality:

  1. It’s cheaper than renting in most cases
  2. Avoid rental increases in the future
  3. Equity build-up with amortization of each payment going to principal
  4. A home is a forced savings account
  5. Appreciation increases your equity and your overall investment
  6. Mortgage interest and property tax deductions
  7. Home equity interest deduction
  8. A place you can call your own
  9. A place to share with friends and family
  10. Capital gains exclusion on profit

Buyers need the confidence that they can afford a home and proof for the sellers when they’re ready to submit a contract. If a buyer has steady reliable income, a good record of paying their bills, money saved for a down payment and are prepared to pay the mortgage each month, the next step is to get pre-approved by a trusted mortgage professional.

Take a look at the Rent vs. Own to see what the real cost of owning a home for your price range.

 


Thursday, May 14, 2015

6605 162nd Court Lakeville, MN 55068

Property Site: http://tour.remax-northcentral.com/home/DS64KZ

Welcome to 6605 162nd Court, Rosemount! This condo features main floor, one-level living. No stairs! This is a well -maintained 2 bedroom, 1 bath townhome style unit. Updates include new furnace, A/C, and hot water heater less than one year ago. New carpet was just installed throughout the home! The entry, kitchen and dining rooms feature  beautiful  wide plank laminate flooring. You will enjoy the wood burning fireplace in the living room. From the dining room, you can walk out to the patio and the large green space with mature trees. There is a laundry room in the home with full sized washer and dryer.The home is situated at the end of the cul-de-sac, so there is very little traffic. You'll enjoy the convenience of this location. Traditional sale. Directions Cty Rd 42 to Foliage, south to 162nd Court, west to the home at the end of the cul-de-sac.

Bedrooms: 2
Bathrooms: 1.00
Square feet: 850
Price: $89,900

For more information about this property, please contact Jon Hoffmeister at (952) 942-3480 or jon@hoffmeisterhomes.com. You can also text 2768791 to 67299.


See more listings at: http://www.results.net/jon.hoffmeister


MLS ID: 4597523

Friday, May 8, 2015

May 2015 Real Estate Market Update.

Amortization

The word describes the process of accounting that will repay a loan over time. Residential buyers will most commonly be required to have an amortized mortgage.

When amortizing a fixed rate mortgage, the payment remains constant for the entire term but the allocation of what goes to principal and interest changes with each payment that is made. Since an amount of each payment retires the principal, the interest due on the next payment is calculated on the unpaid balance after the previous payment was made. amortization schedule.png

This means that an increasing amount is applied to principal on each payment while the amount owed in interest decreases. If normal payments are made each time, on time, the loan will be completed paid off at the end of the term.

You can see in the example of a mortgage of $200,000 at 3.25% for 30 years that it has a fixed principal and interest payment of $870.41. There is $541.67 due in interest with the first payment and the remainder is applied to principal leaving an unpaid balance of $199,671.25. Since the interest due in the second payment is based on a lower principal, a little more is applied to principal.

If you’d like to have an amortization schedule for a mortgage, click here and enter the information about the loan.

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10932 Rhode Island Avenue S Bloomington, MN 55438

Property Site: http://tour.remax-northcentral.com/home/37Y6ML

You will be impressed with this completely updated ground level condo in West Bloomington!  All living spaces of this 2 bedroom, 2 bath unit are on one level.  In-unit laundry is another bounus! There is a screened-in porch which opens up to a sizeable green space with mature trees. The entire home has been freshly painted and features new carpet throughout!  The kitchen boasts all new stainless steel appliances, new countertops , sink and faucet, and new flooring. New doors have been installed in the home as well! The complex  is beautifully maintained, has 2 outdoor heated pools, and is close to parks and trails. Freeway access is minutes away, and major shopping is close by. Pets and rentals allowed (see rules and regulations for details.)  Garage #49. Directions: Old Shakopee Road to Rhode Island, South to home on the right side.

Bedrooms: 2
Bathrooms: 2.00
Square feet: 960
Price: $130,000

For more information about this property, please contact Jon Hoffmeister at (952) 942-3480 or jon@hoffmeisterhomes.com. You can also text 2754726 to 67299.


See more listings at: http://www.results.net/jon.hoffmeister


MLS ID: 4593907

Thursday, May 7, 2015

5510 River Bluff Drive Bloomington, MN 55437

Property Site: http://tour.remax-northcentral.com/home/8H86EA

This English Tudor Style home is a picture of both warmth and elegance featured in an open floor plan. This home was the 1983 “Idea House” which was a showplace to display all the best ideas in design and architecture of the time. The entire house takes advantage of passive solar energy and the rooms are well lit with an abundance of southwest facing windows. Additional spotlights and accent lighting help to accentuate the various design elements throughout the home.

 

The impressive qualities of this home begin at the foyer with marble tile that continues into the hallway, laundry room and bath. The foyer has a floor to ceiling feature of a hand-carved, etched glass panel with accent lighting. A skylight brings additional light into this area. Another prominent feature is the vaulted ceiling in most of the main floor rooms, which is made of solid chestnut paneling that was imported from France.

 

The formal living and dining room area features a massive bricked fireplace wall with a beautiful built-in stained glass window. There is an 8-foot sliding door that leads to a 16x11 deck overlooking the beautifully landscaped back yard and pond. The dining area has a bay window.

 

The kitchen features authentic pegged wood floors. The cabinetry, with leaded glass doors, was designed to look like built-in furniture. There is accent lighting above and below the upper cabinets, and also around the center island. The kitchen was updated in 2010 with Cambria countertops and Electrolux appliances. The informal dining area of the kitchen overlooks the stunning 2-story atrium that drops to the lower level in a half octagon shape.

 

The family room is open to the kitchen, and features a wood-burning fireplace in a beautiful brick wall, which features a rough-hewn wood beam mantle. The family room has access to the screened porch.

 

The large screened porch boasts a vaulted ceiling of beaded west coast Douglas fir, a ceiling fan, and redwood flooring. From the porch you can go out to the redwood deck, which is a great spot to enjoy treetop views of the pond.

 

The owner’s suite takes up one entire end of the first floor starting with the bedroom, which has a brick wood-burning fireplace. The next area is a dressing room, bathroom, spa suite with a walk-in closet, separate shower/rest room, his and hers vanities, and an elevated, sunken Kohler spa tub with ceramic tile surround. An Anderson garden window finishes off the tub area. From the owner’s bath, you can go out to the porch to relax and enjoy views of the pond.

 

At the other end of the main floor is a flexible use room with crown molding, a built-in desk, and cabinetry. This space could be used as a home office, den, bedroom or guest room. Located just outside of this room is a ¾ bath.

 

Finishing off the first floor is the laundry/mudroom located at the garage entrance, featuring a front-loading Electrolux washer and dryer set.  For convenience, there is a coat closet, another closet with shelving for additional pantry storage, a storage bench, upper and lower cabinetry, and a sink with counter space. The windows in this room overlook the front yard of the home.

 

The lower level is also very impressive, starting with a huge amusement room and the lower level of the 2-story atrium. Set in the corner of this area is a cozy sunken conversation pit with a gas fireplace and built-in seating. From the amusement room you can head out to the patio and enjoy the hot tub. On the opposite side of this level is the billiard room with a drop down boxed-light feature with beveled glass over the pool table. Situated in the middle of these 3 areas is the bar/kitchenette that has countertop seating available for both rooms, and includes a sink, and under counter microwave and refrigerator. A neon light over the bar is another custom feature. This entire area has crown molding. Down the hallway from the amusement room we have 3 additional bedrooms with ample closet space, and a full bath.

 

The outside of the home was designed with the same attention to detail. A cedar shake roof sets this home apart. The 3-car garage has built-in cabinetry, plenty of windows for natural lighting, and a finished floor. The driveway and circle turnaround are designed with interlocking brick pavers. Washed aggregate adds a unique look to the sidewalks and steps. The retaining walls and outdoor lighting enhance the landscaping elements, which boast a variety of plants for seasonal color variations. The focal point of the back yard is the scenic pond, which stays aerated to keep its lovely appearance.

 

The home is in the prestigious neighborhood of River Bluff Estates, located near the Minnesota Valley Country Club in West Bloomington.

 

 

Bedrooms: 4
Bathrooms: 3.00
Square feet: 4,218
Price: $529,000

For more information about this property, please contact Jon Hoffmeister at (952) 942-3480 or jon@hoffmeisterhomes.com. You can also text 2536364 to 67299.


See more listings at: http://www.results.net/jon.hoffmeister


MLS ID: 4557521

Friday, May 1, 2015

Pay More or Less

Paying more for your house payment does not make your home more valuable. It does mean that the mortgage rate may be higher than it has to be. more or less.png

Even though fixed rates may never again be as low as they are currently, an adjustable rate mortgage may provide the lowest cost of ownership depending on how long a borrower plans to own a home. There are different types of ARMs but the one in this example is a 30 year mortgage with the rate fixed for five years and can adjust every one year after that based on independent indexes.

Another feature of a FHA ARM is the maximum rate change in one period is 1% and the maximum lifetime cap is 5% over the initial rate.

In the example below, the payment on the adjustable is $153.48 lower for the first five years or 60 payments. Another interesting thing is that lower interest rate loans amortize faster than higher interest rate loans. In this example, the ARM has a lower unpaid balance at the end of the first five years by $4,239.

The total savings on the ARM at the end of the first period is $13,477. If a borrower felt confident they would sell the home prior to the breakeven point of 8.5 years, the ARM would produce a lower cost of housing even if the mortgage rate escalated the maximum at each adjustment period.

To help determine whether you pay more or less, consult with a trusted mortgage professional and your real estate agent to learn the advantages and disadvantages of different programs. To try your own comparison, check today’s rates at the Freddie Mac Mortgage Rate Survey and plug your numbers into an Equity Accelerator

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