6 Ways to Be the Best Buyer in a Competitive Market

6 Ways to Be the Best Buyer in a Competitive Market

If you’re trying to purchase a home in a competitive market, you need to be able to prove to the seller that you are the right buyer for their home. Here are a few ways to be a better buyer than the rest.

The housing market in Central Ohio has seen steady growth over the past few years. The demand for housing is high, but a lack of inventory has created an environment where there are too many buyers for the number of available homes. For sellers, this often leads to multiple offers for higher prices, but buyers are discovering that homes only stay on the market for short periods of time and that they often have to compete with other buyers for those properties.

If you’re a buyer, you have to bring your A game to get a shot at landing the home that you want. Here are a few ways to stand out from the crowd:

1. Get pre-approved. Getting pre-approved by a lender shows sellers that you are a serious buyer, and it lets you know how much you can afford to spend. Having a pre-approval letter in hand when you make an offer can give you an edge over other buyers who haven’t taken that extra step.

2. Know what you want. These days, homes go on the market and sometimes receive multiple offers that day, which means that there is no time to wait before making a move. Before you start looking at homes, make a list of “must-haves” and know which features you’re willing to budge on, so that if you find a home that has almost everything you want, you can make an offer without a lot of deliberation. Share your list with your real estate agent so that they can try to quickly find the right home for you.

3. Make a strong offer. The days of low-balling sellers are over. If a home is in good condition and has most or all of the features you’re looking for, put in a strong offer. Sellers do not have to haggle over home prices when they’re looking through multiple offers, and chances are high that they won’t let you raise your offer after submitting it. If you really like the home, make a strong offer from the start.

4. Get rid of contingencies. If possible, try to reduce or completely remove the number of contingencies you have with your offer. Contingencies and other factors that could delay closing are not ideal to sellers, especially when they’re getting clean offers from other buyers. Talk to your real estate agent about ways to make sure that your offer is one that sellers won’t hesitate to accept.

5. Make it personal. Sometimes, a letter or personal statement to the sellers can give you an advantage over other buyers. Sellers are often attached to their homes, and knowing that the person purchasing it will take good care of it can make having to part with the property a little easier. If you know that your offer is one of many, including a letter that says why this home is perfect for you could make you the top contender.

6. Work with the right real estate agent. This is crucial in any home sale but especially when you’re dealing with a competitive market. Your real estate agent should be responsive and able to act quickly when you find the home that you want. They should be able to offer good advice on how much to offer and effectively negotiate if necessary. Take some time to research real estate agents before choosing one, and make sure that they have your best interests in mind.

Contact Liz Sandwick your Coldwell Banker Burnet Real Estate Professional to analyze all of the options and opportunities available to you for selling your property in today’s marketplace. 

The Best & Brightest Lighting Ideas for Your Smart Home

The Best & Brightest Lighting Ideas for Your Smart Home

Adding smart lighting to your home can make life more comfortable and convenient and can ever lower your energy bills but if you don’t have a game plan it can also get a little pricey.  Smart light bulbs are incredibly efficient in terms of lowering bills and consuming energy. Check out these incredible stats:

Smart lighting is a great way to make an improvement to just about any room in your home. A good idea is to invest first in energy draining spaces in the house like the porch and bedroom. Here are some other factors to consider…

Once you are ready to add smart lighting to your home the great debate begins! Switch out the bulb, the switch or both? Take a look at the different benefits…

Using a traditional light bulb is as easy as flicking a switch but there aren’t many benefits aside from actually lighting up a room. Smart light bulbs can boost your WiFi, play music and can set the mood in a room but they also take a little bit of learning. Here are some smart bulb basics…

So as you can see smart lighting can not only take a big bite out of your utility bill but it can also make life at home more convenient and comfortable. All that is left is picking the right bulb. Here are some helpful tips…

See the full infographic here. 

Loved learning about smart lighting and want to see even more? Check out more CNET & Coldwell Banker Smart Home Content.

How to Choose the Best Type of Mortgage for You

How to Choose the Best Type of Mortgage for You

Choosing the right mortgage rate can be difficult. There are many different options, and what’s the best choice for one person may not be for another.  When borrowers begin the mortgage process, they first need to develop an understanding of mortgage rates. Then, the challenge becomes identifying what type of mortgage meets their individual needs.  Here are two questions every home buyer should ask themselves when choosing a mortgage rate:

1. Do I want a fixed rate or adjustable rate mortgage (ARM)?

Borrowers have a choice of two types of loans, fixed rate or adjustable. In short, fixed rates mean the monthly payments never change. ARMs offer fixed rate terms for, usually, five or seven years followed by rates that can change once a year after that.

“I’m a big fan of fixed rate mortgages,” said Greg McBride, chief financial analyst for Bankrate.com, a leading mortgage loan information site. “For home buyers, it’s the best gauge of affordability. If you can’t afford a home with interest rates at below 4%, you can’t afford a home.”

ARMs are cheaper initially: At recent interest rates, the monthly payment for an ARM would save about $60 a month on a 30-year fixed with a $200,000 principal. But for many borrowers, that may not be enough savings to offset the uncertainty of potential adjustments.

For others, however, adjustable rate loans can make sense, according to Keith Gumbinger of HSH.com, a mortgage information provider. “ARMs work well with short-term forms of ownership,” he said. “If you think you’ll be there only five or six years, ARMs will save you money.”

Other candidates for ARMs are households whose incomes are likely to rise, such as a one-income household with a partner who plans to return to the work force in a couple of years. They could opt for a more affordable payment during the lean times, knowing that, when their costs rise, they’ll be in a better financial position to afford the higher payments.

2. If I have a fixed rate mortgage, should I choose a 30-year or 15-year?

The shorter the term of the fixed rate mortgage, the lower the interest rate, but the higher the monthly payments. On a $200,000 loan, a 15-year fixed at current rates will cost about $1,376 a month, $460 more than the payments on a 30-year mortgage.

Of course, the loan will be paid off in half the time, saving borrowers more than $80,000 in interest over the full course of the mortgage.

According to McBride, borrowers should opt for 15-years only when they can afford to do so without harming their other financial goals.

“Handcuffing yourself to higher monthly payments is bad if it prevents you from investing in tax-advantaged retirement accounts or if you’re unable to set aside enough cash in an emergency fund,” he said.

If you can’t max out your 401(k) payments because your mortgage payments are too steep, you’ll end up costing yourself a lot of money in the long run.

But if you’re convinced that you have enough income and savings, then go for the 15-year. You may be the first one on your block to be mortgage-free.

In our third and last installment of this series, we’ll look at other money-saving tips and tricks that could help you shave down the cost of your mortgage or even get ahead on a few payments. Stay tuned!

Contact Liz Sandwick your Coldwell Banker Burnet Real Estate Professional to analyze all of the options and opportunities available to you in today’s marketplace. 
Call/Text: 612-548-4549 or www.LizSandwick.comHo

Spring Home Maintenance Checklist

Spring Home Maintenance Checklist

Soon enough, the unforgiving winter will be over, and that means we will no longer need to wrap ourselves in an excessive amount of clothing – like poor Ralphie’s little brother in A Christmas Story.

This is of course great news, but don’t forget that with the introduction of spring comes the responsibility to nurse our homes back to health after several months of an elemental beating.

To smooth out the process, we’ve put together a basic checklist of spring maintenance tips that you can follow as you bring your property back to life.

• Roof: What is a house without its roof? Be sure to inspect all components of it – flashing, eaves, soffits, etc. – to ensure they’re fully intact. Wind, ice and rain can wreak havoc on these areas, which can lead to bigger structural issues.

• Foundation: Take a close look at your foundation, if you happen to see a crack or a hole within the concrete, call a specialist to seal these up before any uninvited intruders decide to sneak in, or spider-cracking occurs.

• Gutters and Downspouts: This is the perfect place for debris to get caught, which may be fine at this present moment, but it won’t be during our first April shower, when rain water is unable to sufficiently drain through your gutters/downspouts.

• Air Conditioners (Evaporative): Clean your AC unit thoroughly and check to make sure you have a strong, healthy intact belt. If heavily worn or cracked, replace this immediately.

• Windows: Be on the lookout for any gaps between your windows and sills. If you spot some, make sure to fill them with caulk, or if you see any significant cracks in the windows themselves, it may be best to replace them completely.

• Siding: These areas can become an eye sore after the winter, and may end up being coated in dirt and other grime. Use a power washer, or a soapy water bucket and brush to clean up the siding. Then coat with a few new layers of paint to combat any fading from the elements.

Contact  Liz Sandwick your Coldwell Banker Burnet Real Estate Professional to analyze all of the options and opportunities available to you for preparing, enhancing, selling or buying a property in today’s marketplace. 

Housing Market To "Spring Forward" This Year

Housing Market To “Spring Forward” This Year

Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in the market right now is what is holding back the market.

Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right.

Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions.

That hasn’t happened this year.

Demand for housing has remained strong as mortgage rates have remained near historic lows.

The National Association of Realtors (NAR) recently reported that the top 10 dates sellers listed their homes in 2015 all fell in April, May or June.

Those who act quickly and list now could benefit greatly from additional exposure to buyers prior to a flood of more competition coming to market in the next few months.

Bottom Line

If you are planning on selling your home in 2016, meet with a local real estate professional to evaluate the opportunities in your market.  Contact Liz Sandwick,  your Coldwell Banker Burnet Real Estate Professional to analyze all of the options and opportunities available to you for selling your property in today’s marketplace. 

Liz Sandwick, Coldwell Banker Burnet REALTOR® helping buyers & sellers in areas like: Apple Valley, Lakeville, Burnsville, Prior Lake, Savage, Farmington, Rosemount & throughout Minnesota!

What You Need to Know about Mortgage Rates

What You Need to Know about Mortgage Rates

The biggest tailwind for the housing market right now is mortgage rates that have hovered at or near historic lows for years. Other than the home price itself, nothing dictates buyer choice more than interest rates.

Rates determine how much house families can afford; they can make the difference between buying their dream house or settling for one too small, too outdated, or too out-of-the-way.

Currently, rates are near 3.5% for a 30-year, fixed rate loan–the most popular mortgage for home buyers.

Look at the table (below) to see how rates affect costs.

Loans carrying an interest rate of 7.5% would burden a borrower with an extra $500 in monthly payments compared with current low rates. Borrowers who pay off a $200,000 loan would spend more than $503,000 (interest would total $303,434) over the full 30-year term. In contrast, borrowers with loans at 3.5% would pay about $323,312 (interest of $123,312). That’s a total savings of $180,000.

At its historic high of about 16%, a 30-year loan would cost borrowers $2,690 a month and pile up $768,000 in interest over the full term of the loan. Yikes!

Bottom Line

With home prices down more than 10% from their boom year highs and today’s bargain mortgage rates, home buying is still affordable. The low rates will not last forever – although industry experts forecast only very modest increases in mortgage costs for a while.

But home prices have been on the upswing and are easily outpacing inflation, which means the year 2016 may be one of the best opportunities home buyers will have to buy their dream home.

All in all, it’s a great time to get a mortgage. But there are other choices consumers must consider when making what is usually the biggest financial decision of their lives. We’ll explore these factors in part two of the series, where we’ll define fixed versus adjusted mortgages and determine the pros and cons of 15 and 30 year mortgages. Stay tuned!

If you are ready and willing to buy or sell a property -contact Liz Sandwick, licensed in Minnesota,  your Coldwell Banker Burnet Real Estate Professional, to analyze all of the options and opportunities available to you in today’s marketplace. 

Liz Sandwick, Coldwell Banker Burnet REALTOR® helping buyers & sellers in areas like: Apple Valley, Lakeville, Burnsville, Prior Lake, Savage, Farmington, Rosemount & throughout Minnesota!

Home Sales Cruise in January

Home Sales Cruise in January

The housing market ended 2015 with a bang: Gains in home prices accelerated throughout the last quarter of the year. Prices closed out December 7% higher than in December of 2014. That strength has continued into 2016, with a year-over-year home price rise of 8.2% in January, to $213,800, according to the regular monthly report from the National Association of Realtors (NAR).

January was also the strongest month for home sales since last April, with 11% more homes sold during that month than were sold during January of 2015 – the annualized sales pace hit 5.47 million. That uptrend occurred despite shortages of inventory in many of the nation’s hottest markets, according to Lawrence Yun, NAR’s chief economist.

“The spring buying season is right around the corner and current supply levels aren’t close to what’s needed to accommodate the subsequent growth in housing demand,” he said.

Tight Supply of Homes is Limiting Sales

At the current pace of sales, there is only a four-month supply of homes on the market. Ideally, in a balanced market there should be closer to a six-month supply. The nation’s home builders are trying to boost production: Home construction starts rose about 7% during the last three months of 2015, compared with the end of 2014. January construction starts were up just 2% or so, however.

Economic conditions are adding to the demand for housing. The national unemployment rate fell to 4.9% in January, its lowest level in almost eight years. Returning workers are adding to the clamor for homes. The home ownership rate ticked up during the last three months of 2015 to 63.8%, but that’s still far below the housing boom year highs, when rates hit as high as 69.2%. The impact of the improving labor situation is reflected in a jump in first-time home buyers. They accounted for 32% of the market in January, compared with the 28% one year ago.

Consumer Income on the Rise

The latest report from the Bureau of Labor Statistics said that earnings are finally producing some gains: The average worker is now making about 2.5% more than a year earlier. While that gain still trails home price increases, bargain mortgage rates have kept homes reasonably affordable in many parts of the country. In January, the average interest rate home buyers have been getting was well under 4%.

Market experts don’t see any reason to expect much higher interest rates before the end of the year. That should enable the housing market to continue its solid trajectory going forward.

January Home Sales Figures across Regions of the United States

The sales jump year-over-year in the Northeast leads among other regions across the U.S., but the South leads in number of home sales. Home prices were highest in the West, with a moderate year-over-year increase compared to the South and Midwest.

Region	Home sales	% Increase year-over-year	Median home price	% Increase year-over-year
Northeast	760,000	20.6%	$247,500	0.9%
Midwest	1.3 million	18.2%	$164,300	8.7%
South	2.24 million	5.7%	$184,800	8.5%
West	1.17 million	8.3%	$309,400	7.4%

Source: National Association of Realtors

Bottom Line

If you are ready and willing to buy or sell a property -contact Liz Sandwick, licensed in Minnesota,  your Coldwell Banker Burnet Real Estate Professional, to analyze all of the options and opportunities available to you in today’s marketplace. 

Liz Sandwick, Coldwell Banker Burnet REALTOR® helping buyers & sellers in areas like: Apple Valley, Lakeville, Burnsville, Prior Lake, Savage, Farmington, Rosemount & throughout Minnesota!

Tips for Staying "Showing-Ready" While Selling Your Home

Tips for Staying “Showing-Ready” While Selling Your Home

One of the hardest parts of selling a home is keeping it “showing-ready”. Potential buyers could drop by at a moment’s notice and a dirty or cluttered house could turn them off from making an offer. Follow these helpful tips to stay clean and organized during the home selling process.

Step 1: Declutter/Depersonalize

One way to make your house instantly show-ready is to declutter. When you have too many bulky items in the way, your home can appear smaller than it really is. Remove items or furniture that block pathways or overwhelm closets. This is when storage boxes or even a storage container can come in handy. You’ll also want to depersonalize your home. Take any family photos down from the walls, remove family heirlooms, etc. You want the home to be a blank slate that the potential buyer can envision themselves living in.

Step 2: Cleaning/Laundry

Clean like your life depended on it. (Or just clean like your in-laws are coming over.) A clean home can be indicative of how well the home was maintained. If you stay on top of the chores each day, it will be easy to stay spotless. This includes keeping clothes hung up, folded in drawers or neatly stored away in laundry baskets, not left in the washer/dryer or, worse, in piles on the floor. In fact, use this time to donate or throw away old clothing items. If you have children, make a game out of cleaning up their toys with them. (The last thing you want is for someone to step on a Lego during the showing.)

Step 3:  Make Repairs

Make sure to keep up with any repairs during the selling process. This includes tightening leaky faucets, replacing burnt out bulbs, keeping smoke/carbon monoxide detectors working, etc. Having tools, extra light bulbs and batteries on hand can make this easier to keep up with. Painting the walls can also be a great way to freshen up the space. (Use a neutral color though as bright or unusual colors can actually turn-off potential buyers.)

Bottom Line

If you are ready and willing to buy or sell a property -contact Liz Sandwick, licensed in Minnesota,  your Coldwell Banker Burnet Real Estate Professional, to analyze all of the options and opportunities available to you in today’s marketplace. 

Liz Sandwick, Coldwell Banker Burnet REALTOR® helping buyers & sellers in areas like: Apple Valley, Lakeville, Burnsville, Prior Lake, Savage, Farmington, Rosemount & throughout Minnesota!