Four Reasons to Buy Before Winter

Four Reasons to Buy Before Winter

It's that time of year, the seasons are changing and with them bring thoughts of the upcoming holidays, family get-togethers, and planning for a new year. Those who are on the fence about whether now is the right time to buy don't have to look much farther to find four great reasons to consider buying a home now, instead of waiting.

1. Prices Will Continue to Rise

The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released recently projects appreciation in home values over the next five years to be between 11.2% (most pessimistic) and 27.8% (most optimistic).

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise later this year. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by the end of next year.

An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3. Either Way You are Paying a Mortgage

As a recent paper from the Joint Center for Housing Studies at Harvard University explains: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.

Bottom Line

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Don't Get Caught in the 'Renter's Trap'

Don’t Get Caught in the ‘Renter’s Trap’

In a recent press release, Zillow stated that the affordability of the nation’s rental inventory is currently much worse than affordability of the country’s home sale inventory. The release revealed two things:

1. Nationally, renters signing a lease at the end of the second quarter paid 29.5% of their income to rent
2. U.S. home buyers at the end of the second quarter could expect to pay 15.3% of their incomes to a mortgage on the typical home

Furthermore, renters pay more than the average of 24.9% that was paid in the pre-bubble period while buyers actually pay far less than the 22.1% share homeowners devoted to mortgages in the pre-bubble days.

Don’t Become Trapped

If you are currently renting you could get caught up in a cycle where increasing rents continue to make it impossible for you to save for a necessary down payment. Zillow Chief Economist Dr. Stan Humphries explains:

"The affordability of for-sale homes remains strong, which is encouraging for those buyers that can save for a down payment and capitalize on low mortgage interest rates… As rents keep rising, along with interest rates and home values, saving for a down payment and attaining homeownership becomes that much more difficult for millions of current renters.”

Know Your Options

Perhaps you already have saved enough to buy your first home. HousingWire recently reported that analysts at Nomura believe:

“It’s not that Millennials and other potential homebuyers are not qualified in terms of their credit scores or in how much they have saved for their down payment.

It’s that they think they’re not qualified or they think that they don’t have a big enough down payment.” (emphasis added)

Freddie Mac came out with comments on this exact issue:

1. A person “can get a conforming, conventional mortgage with a down payment of as little as 5 percent (sometimes with as little as 3 percent coming out of their own pockets)”.
2. Freddie Mac's purchase of mortgages with down payments under 10 percent more than quadrupled between 2009 and 2013.
3. More than one in five borrowers who took out conforming, conventional mortgages in 2014 put down 10 percent or less.

Bottom Line

Don’t get caught in the trap so many renters are currently in. If you are ready and willing to buy a home, find out if you are able. Have a professional help you determine if you are eligible to get a mortgage.

The Complete List of Important Questions to Ask A Contractor Before Hiring Them

If you are thinking of doing some work to your property - consult a licensed REALTOR® to make sure you are putting your money to best use.  Contact Liz for a free consultation today!

218-310-3350 text/cell

612-548-4549 office

Licensed in Minnesota

ECSandwick@CBBurnet.com

LizSandwick.com

From Coldwell Banker Blue Matter's Blog

Thinking about hiring a contractor? These questions will help to find the right fit for the job.

LINDSAY LISTANSKIYESTERDAY

When you set out to do a remodel, addition or other major home renovation, you will need a general contractor to oversee the work that needs to be done. Hiring a general contractor means getting the best person, and while there are many general contractors in your area, you will need to screen them.

Part of that screening process is asking the right questions and getting a sense of their work history and ethics. There are a lot of questions you could ask, but here are some of the essential ones:

What’s your business history?

Asking a contractor’s business history is one of most important steps to finding out more about the work they’ve done, how well they did it and if their past clients were satisfied. If they are unwilling to give you references or talk about their history, it’s a good indication you might look elsewhere.

Some follow-up questions to ask around this question include:

• How many years have you been doing contractor work?
• How many projects have you completed like mine in the last year?
• Do you have a list of references I could call?
• What kind of insurance do you have?
• Are you licensed?
• Do you carry worker’s compensation for your employees?
• Do you have insurance in case something in my home is broken during the remodel or addition?
• Will you sign a “time and materials” contract?
• Do you often finish a project within the allotted time frame?

Who will be at the site and how will it be supervised?

Knowing who will be at your house every day during the renovation is important. You should know who they are, if the contractor will be there and any details about the team working on your home. For example, there might be a construction manager hired, which can cost between $3,200 and $4,400. It will depend on the extent of the project, and if the general contractor isn’t going to be the manager.

Some additional questions to ask:

• Can I meet the job foreman or project manager, if there will be one for my project?
• Will you be using any subcontractors on this project?
• Who will be on the site every day during the project?
• Will you be onsite every day or stopping by, and if the latter, how often?

Can you give me a timeline?

There should be a timeline for the project, so you know what to expect and when. Having a timeline will keep you aware of whether they’re behind or ahead of schedule. It will also let you know when you might need to be out of the house or specific rooms during the renovation.

You should ask the contractor:

• What is our schedule?
• Will this require a permit and who needs to pull them?
• When will you start and finish?
• What will be the start time and finish time every day?
• Will you work seven days a week?
• How will you communicate with me after hours?
• How will I know when I need to make decisions?
• What documents will I receive when the project is complete?

What guarantees can you give me?

Guarantees may or may not be part of the contract you sign with the general contractor. You want to have everything worked out before signing anything, so questions you might ask include:

• Is there any part of my project that worries you? If so, what is it and how do we work it out?
• Will you provide me with updates on a daily basis?
• Do you offer a guarantee on your work, and if so, what is it?
• Do you have any legal disputes pending from previous work that I need to be aware of?

Can I get that in writing?

Once you get everything worked out, it’s time put it all down in writing. What you need to have in the contract will depend on the project, so some questions you might ask include:

• Would you itemize the bid?
• Is the bid just an estimate or your fixed price for the project?
• Will you agree to a termination clause?
• Will your contract include the job details, timeframe, materials, cost, “time and materials” and termination clause?

If you think you need to ask any additional questions not covered here, you might want to consult friends and neighbors who have done similar renovations. Some other questions to consider asking when you decide whether to hire a general contractor include:

• What do I have to put down?
• What’s the bottom line?
• What’s your work routine like?
• Who are your main suppliers?

Remember, you want the right man or woman for the job and don’t want to go back for extensive repairs later.

Andrea Davis is the editor at HomeAdvisor, which connects homeowners with home improvement professionals in their area for free. Connect with Andrea on Google+

College Students Swapping Homes with Mom & Dad

College Students Swapping Homes with Mom & Dad - Below you can check out: College Students Swapping Dorms for Homes Purchased by Mom and Dad by blogger Lindsay Litanski.

But before you dive in - think about the college towns in Minnesota:  Twin Cites, Duluth, Bemidji, Mankato, Rochester, Mora, Moorehead among others.  If you would like more information about properties in these areas- contact me today!  Now on to Lindsay's blog:

Home away from home is getting even sweeter for college students. (As if college wasn’t already the best four years ever)

In a recent informal survey of its sales associates, Coldwell Banker found that more than one-third of agents across the country are seeing more buyers looking to purchase properties for their children now than in previous years. The reasons for the investment are varied – some are taking advantage of low prices and interest rates, while others are anticipating inventory may be scarce when their child enters school.Do you ever secretly wish you could head back to college and re-live the good old days, maybe for just one semester? If it seems like college life is only getting sweeter, you may be right. On more and more college campuses, a few lucky students are ditching the crammed dorm life and tiny off-campus apartments for bigger digs – courtesy of mom and dad of course.

Ed Feijo, a sales associate with Coldwell Banker Residential Brokerage in Cambridge, Mass., has seen international buyers purchase homes for children as young as 14! No, these child prodigies are not yet at Harvard or MIT. But their parents certainly have high hopes, so they are determined to snatch up a desirable property while they can.

Whether you’re a parent looking to make an investment, or a student who wants to persuade mom and dad, here are some listings within a two mile radius of a few iconic college towns:

• Madison, Wis.
• State College, Pa.
• Athens, Ga.
• Chapel Hill, N.C.
• Ann Arbor, Mich.

Still a Great Time to Buy a Home…but HURRY!!

Kevin Kelly, Chairman of the National Association of Home Builders (NAHB), recently explained that:

“With interest rates near historically low levels and strengthening job growth, now continues to be a great opportunity to buy a home.”

We couldn't 
 agree more. However, we must realize that, with prices and interest rates both projected to increase, waiting could cost us.

There are two organizations that look at the affordability of purchasing and actually measure it over time. The National Association of Home Builders has their Housing Opportunity Index (HOI) and the National Association of Realtors’ has the Housing Affordability Index .

Both indexes are reporting the same thing. The cost of buying a home is beginning to increase leading the affordability indexes to dip.

Both indexes say we passed the bottom of the housing market

According to NAHB’s HOI housing affordability dipped slightly in the second quarter of 2014. NAHB’s Chief Economist David Crowe explains:

“The second quarter HOI reflects the slow but steady march toward the historic levels of price appreciation and interest rates that result in affordability levels we experienced before the mid-2000s boom.”

According to NAR in a recent Economists’ Outlook post, home affordability is down from both one month ago and one year ago in all regions.

Michael Hyman, Research Assistant at NAR said:

“At the national level, housing affordability is down for the month of June due to higher prices and qualifying income levels despite the lowest mortgage rates of the year.”

In a recent article, the Wall Street Journal also revealed that the cost of home ownership is higher than any time in over five years:

“Housing affordability hit its lowest level in nearly six years in June as home prices continued to climb."

Bottom Line

If you were waiting for the bottom of the market, you missed it. Yet, with prices below values of seven years ago in most parts of the country and interest rates near historic lows, it is still a great time to buy a home…but hurry!

Buying a House? Four Reasons to DO IT NOW

Buying a House? Four Reasons to DO IT NOW

Here are four great reasons to consider buying a home today, instead of waiting.

1. Prices Will Continue to Rise

The Home Price Expectation Survey polled a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects appreciation in home values over the next five years to be between 30.8% (most optimistic) and 9.4% (most pessimistic).  The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Although the Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage are currently around 4.2%, Freddie Mac is projecting (active link) that rates will increase to 5.2% by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3. Either Way, You are Paying a Mortgage

As a research paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It’s Time to Move On with Your Life

Leslie Hanna Smitke just closed on her new house
with Liz Sandwick.  Make the right choice, contact Liz today!

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.  But, what if they weren’t? Would you wait? 

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe it is time to buy.  If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

11 Questions to Ask Before Hiring a Moving Company Was your plan to Google Moving Company? Think again.

11 Questions to Ask Before Hiring a Moving Company

Was your plan to Google Moving Company? Think again.

LINDSAY LISTANSKIYESTERDAY

Guest post by Co-Founder NorthStar Moving Company Laura McHolm

I know, you were thinking you would just Google “moving company.” Sure, you will find a zillion moving companies, but are you ready to handover your baby grand piano or other prized possessions into any stranger’s hands? So, how do you choose the mover you can trust?  Here are some handy tips on what to look for when hiring a mover.

First, when choosing a moving company, reputation is crucial. A great reputation saves you time and money. And, a great reputation equals great rates. No one ever says: “oh yes, I LOVE this company they just made me over pay for their crappy service.” So, if you take away only one tip: It’s choose your mover based on reputation.

How do you know who to trust with all your worldly possessions? Asking key questions not only uncovers a wealth of knowledge about the company and helps prepare you for moving day, but a little extra research can save you from a huge hassle in the long run. Here are some surefire questions to ask before hiring a mover:

• How long has the moving company been in business? Experience counts and a track record shows their ability to deliver each and every time. They have moved countless kids clay hand-prints and know they are simply irreplaceable: no amount of insurance is going to ever give you those back.
• Are they licensed? If you are looking for a moving company to move you from state to state the moving company should have a US DOT number, which is a unique license number issued by the United States Department of Transportation. Make sure your mover’s DOT number is valid by searching it in this database. If you’re looking for a moving company to move you with in your own state they need a state license. In California, it’s a Cal T license.
• Is the company insured? Verify that the company is insured on the same website you use to check their license number. Never use a moving company without a license number or insurance. Think underage unlicensed teenage driver at the wheel of a semi-truck. Not a good idea, right? Neither is an unlicensed or uninsured bunch of folks who call themselves a moving company or group of dudes who really only do moving as a side job. Also, check to see if your personal items are covered during a move under your homeowners or renters policy. If not, you may want to consider supplemental moving insurance.Movinginsurance.com or moveinsure.com are good resources.
• Have they won any awards or accolades for service? Can they show you any letters of recommendation? If they haven’t won any awards for service, chances are they aren’t going to win any awards from you. Remember a great reputation absolutely saves you money. NO ONE gives a glowing review to a company that over promised, under delivered and over charged.
• Be sure to check out the company’s rating with the Better Business Bureau (BBB). Social media sites such as Yelp, Citysearch and TrustLink will also give you a look into other people’s experiences with the company. Make yelpers your new BFFs.
• Low rates don’t necessarily mean a low final bill. Study rates! What do their rates really include? Are fuel charges incorporated? Also, just like the airlines, rates can vary based on season and days of the week. Will they give you a better rate if you move on a Sunday as opposed to a Monday? Repeat your new mantra: Great Reputation equals Great Rates. And repeat again: no one wins awards or great reviews when they overcharge!
• If you are moving out of state, ask the company to explain in detail its consolidation policy and delivery windows. Consolidation is when your belongings are combined with other people’s and shipped together. It’s a great way to save money, but be aware that it will add time to the delivery schedule because multiple stops for the other folks’ deliveries are made as your belongings travel across the country. Is the moving company forth coming about the fact that long distance moves almost always involve a delivery window not an exact delivery date? It’s better to know all this upfront so you can pack a suitcase that stays with you, you don’t want to start your new job in your gym shorts or pjs.
• Will the moving crew wrap and protect your furniture to prevent damages? How many movers will be on the job? How long will the job take? Are there enough hours in the day? Will you be charged if there is overtime?  By law a moving company can only give you rates on the phone not estimates on the phone. Does the moving company provide free on site estimates?
• Are they active in the community? If they care about the community, chances are they will care about you and your move. They want to continue doing business in your town a long, long time. And, they aren’t just into one night stands but really want a committed relationship with your community and you, your friends and your family.
• What sort of specialty experience do they have? Are they familiar with high rises and elevators? Additional men and equipment can mean surprising extra costs.
• Ask the movers to measure your doorways, stairways, elevators etc… and take pictures of them before the move so you can’t be blamed for any damage.
• Lastly, let the moving estimator ask YOU questions. If he/she hasn’t asked a single question, yet is ready to give an estimate, turn and run.

Laura McHolm is an organizational, moving & storage expert and co-founder of NorthStar Moving Company. NorthStar Moving Company is an award winning, “A+” rated company, which specializes in providing eco-luxury moving and storage services. www.northstarmoving.com

Pent-Up Buyer & Seller Demand About to be Released?

Pent-Up Buyer & Seller Demand about to be Released?

American consumers’ perception of the residential real estate market was revealed in a recent survey by Edelman Berland. They interviewed 2,500 Americans who are “in the market” to buy or sell a home. Respondents were between 25-64 years old with a household income of at least $50,000.

Here are the key findings of the survey:

BELIEF in the HOUSING MARKET

There is a strong belief among this segment of the population that the housing market is on the right track and that is committing almost 7 out of 10 to buy or sell a home this year. Millennials belief in real estate is actually higher than the overall population.

• 77% of consumers (and 85% of Millennials) have a favorable view of housing
• 79% of people (and 83% of Millennials) believe the housing market is on the right track
• 69% of consumers said they are committed to buying or selling a home now

CHALLENGES

The extreme weather faced by much of the U.S. definitely delayed many real estate transactions. That pent-up demand is now being released causing price appreciation in many regions of the country. This rise in prices and the expected increase in interest rates is causing many purchasers to buy sooner than later.

• The main reason (45%) people waited to make a real estate transaction is they were waiting for spring weather to arrive
• 76% of consumers believe that pent-up demand will create even more competition for existing homes
• 74% of consumers are most concerned about higher than expected prices when buying a home this spring
• 83% of consumers are motivated to act sooner than later because they fear interest rates will increase

Other interesting findings from the survey (broken down by buyers and sellers):

Buyers

• 80% of real estate consumers are more committed to buying
• 78% of potential buyers said it will be easier to purchase a home this spring since “homeowners want to sell”
• 72% are encouraged because “the economy is improving”
• 46% of buyers said spring was a more favorable time to buy a home
• 28% of buyers said summer was a more favorable time to buy a home (an 8% increase over last summer)

Sellers

• 83% of real estate consumers are more committed to selling
• 63% of sellers are buoyed this spring by the improving economy and their perception that buyers are motivated following the difficult winter

Bottom Line

The real estate market will continue to gain ground through the summer as more and more people realize this is a great time to move. And, the vast majority (88%) of those surveyed realized that hiring a real estate professional is important to their home buying or selling success.

Five Reasons to Sell Now

Five Reasons to Sell Now

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? Can buyers qualify for a mortgage?  These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are five of those reasons.

1. Demand is Strong

There is currently a pent-up demand of purchasers as many home buyers pushed off their search this past winter because of extreme weather. According to the National Association of Realtors (NAR), the number of buyers in the market, which feel off dramatically in December, January and February, has begun to increase again over the last few months. These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition Now

Housing supply is still under the historical number of 6 months’ supply. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future. Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen.  Selling now will make the process quicker and simpler.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by this time next year.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market and pricing it so it sells. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.