House hunting is such an emotional venture, it’s very easy to forget your criteria. Like us, we know that we’re not cut out to own a “fixer upper” or even be in the market for a home with significant cosmetic needs. We’ve been there, we’ve done that  - and honestly, we’re not very good at it.

So when we were looking at a duplex built in the late 1800’s the other day in a fabulous neighborhood, I left with the impression that it was “old and cold.” One can tell that someone has been working hard on the property, but still - the woodwork has a 100 years worth of paint on it. Literally, the millwork is nearly rounded out from all the paint build-up. I hate refinishing woodwork and feel like life is too short to immerse myself in chemicals and scrape my life away.

My spouse was far more tempted than I am and was even willing to overlook the fact that it has no garage. A garage is high on my list -it doesn’t even have to be attached - but it does need to exist.

Then he voiced the temptation to spend way more than we should to get exactly what we want. And that’s not a good idea either. I know that one day, we’ll find a property that we’ll be willing to compromise one or tow of the things on our list for, but it is indeed good to have  that list handy -literally written down - when you’re out hunting.

It may just help you stay honest to yourself.

The Landlord from Will Ferrell

Being a landlord is hard work. You need to know what’s what with tenant law, how to write a good contract and have a PhD in Interpersonal Communications. I’m revisiting this topic because now we’re looking a duplex. I know, we’re the Sibel of home shoppers. We had a duplex for a number of years in NorthEast Minneapolis and we’re just lucky to have really mellow tenants living upstairs from us.

But luck is not a great business strategy because after all, having rentals - be it one or fifty - is a buisness.

Tom, my agent here at Webdigs, turned me to a course that he took and loved. It’s through Kaplan Professional Schools and can be taken online. The promises to walk you through  screening potential tenants to handling evictions. In short, it provides the right information for you to stay above the legal waterline and be profitable.

And if you haven’t watched the Landlord on Funnyordie.com, it’s worth streaming.

Don’t look now but oil prices are climbing.

This should worry today’s home buyers and would-be refinancers because some of the same forces that helped to push crude past $50 for the first time in 4 months also cause mortgage rates to rise.

March 18, the Federal Reserve committed an additional $1.15 trillion to support the economy. 

Since the announcement, investors have questioned whether the Fed is purposefully spurring inflation.  The Fed’s total debt purchases now total $1.75 trillion.

And to finance its purchases, the Federal Reserve is printing new money, devaluing the U.S. dollar along the way.  This then leads to inflation which, all things equal, causes oil prices to rise, gas prices to rise, and mortgage rates to go with them.

As we’ve seen the last few summers, oil prices and mortgages seem to touch their yearly high points while the weather is warmest.

(Image courtesy: The Wall Street Journal)

To Search Active Real Estate Listings in Your Area, Visit www.webdigs.com

Each month, the National Association of REALTORS^® releases the Existing Home Sales report.  It’s a detailed look at “used” home sale data from all four regions of the country.

Among the key findings of each Existing Home Sales report is something called the “median sales price”, the statistical price point at which half of the homes in the U.S. sold for more, and half sold for less. 

Last month, the median sales price in the United States fell to $165,400, down 15.5 percent from a year ago.

Nevertheless, just because the median sales price is lower from last year doesn’t mean that the housing market is losing steam. The median sales price is just the middle point of all home sales in all U.S. markets.  By definition, it groups New York City and Danville, Illinois; Los Angeles and Cheyenne — markets that have little do with one another. 

When median sales prices are falling, it doesn’t point to housing weakness, per se — just that more homes are selling at the lower end of the pricing spectrum than at the higher end.

Going forward, it’s believed that a reduction in home supplies is the key to a complete, national housing recovery.  It’s encouraging, therefore, in a month known for a high volume of new listings, that the number of homes sold kept pace with the number of new homes available for sale. 

The current housing inventory stands at 9.7 months, flat from January.

(Image courtesy: The Wall Street Journal)

To Search Active Real Estate Listings in Your Area, Visit www.webdigs.com

The national housing market got its third piece of good news in 3 days:

1. Monday: Existing Home Sales up
2. Tuesday: Home values appear higher nationally
3. Wednesday: New Home Sales up

And although national real estate statistics are irrelevant to the local markets in which real estate transactions happen, to a country of would-be and wanna-be home buyers, repeated positive news on housing can be a strong signal that it’s time to get off the sidelines.

At least, that’s what the data is showing us.  According to an industry trade group, first-time home buyers accounted for half of all sales of previously-owned homes. 

The stimulus package’s $8,000 tax credit likely played a role in this 50 percent figure, as well as sagging home prices in most markets and low mortgage rates nationwide.

But lest we carried away, we can’t forget that February’s New Home Sales is still the second-lowest tally on record and that two months of data doesn’t define “turnaround”.

On the other hand, if the trend continues through the Spring Buying Season, we’ll likely look back at Winter 2009 as the low point in housing.

(Image courtesy: LA Times)

To Search Active Real Estate Listings in Your Area, Visit www.webdigs.com

With mortgage rates are hovering near all-time lows, lots of Americans are taking advantage of refinance and home buying opportunities. 

The downside of today’s unexpectedly-low rates, though, is that mortgage lenders are ill-equipped for the rush of new business. 

As a result, the process of underwriting and approving new mortgage applications is taking some conforming lenders as long as 2 months to complete. 

This is double the time needed as recently as six months ago.

Because there may be 60 days between the application date and the closing date, it’s important for applicants to remember that mortgage approvals can be revoked at any time prior to funding. 

As mortgage applicants, there are many events that are out of our control — job security and health matters, for example.  But there are also events that are within our control. 

Knowing that mortgage approvals can be fragile, here are 8 things you should absolutely not do while your home loan is in process.  It may be the difference between being approved by the bank, and being turned down.

1. Don’t buy a new car or trade-up to a bigger lease.
2. Don’t quit your job to change industries
3. Don’t switch from a salaried job to a heavily-commissioned job
4. Don’t transfer large sums of money between bank accounts
5. Don’t forget to pay your bills — even the ones in dispute
6. Don’t open new credit cards — even if you’re getting 20% off
7. Don’t accept a cash gift without filing the proper “gift” paperwork
8. Don’t make random, undocumented deposits into your bank account

Now, avoiding these items may not be practical for everyone.  For example, if your car lease is expiring and you need a larger vehicle, it doesn’t mean you can’t buy the car — just check with your loan officer first to be sure the new payments won’t “break” your approval. 

The same goes for accepting cash gifts from parents.  There’s a right way and a wrong way to accept gifts and doing it the wrong way may prevent you from using the gift as a source of downpayment.

Mortgage lending is full of “gotchas” and with underwriting times stretching to 60 days, it’s a lot more likely that a mortgage applicant will trip into one.  Following these 8 rules, though, is a good start.

To Search Active Real Estate Listings in Your Area, Visit www.webdigs.com

A report published Tuesday showed that home values fell nearly 3 percent in January 2009 versus the month prior and by 19 percent from last year.

On the surface, data from the study looks like more bad news for housing.  With deeper inspection, though, we uncover reasons to discount the report’s finding.

For one, the report includes home price data from just 20 cities around the country — and they’re not the 20 most populated cities, either. 

For example, data from #4-ranked Houston is not included and neither is #7 San Antonio nor #10 San Jose. #54 Tampa, however, is included.

Secondly, the report is two months lagging. 

Published March 31, its data is only accurate as of January and a lot has happened in the last 2 months. This includes a record-drop in interest rates and the introduction of an $8,000 tax credit for qualified first-time home buyers.  The stimulus has helped raise home sales volume on both new homes and previously-owned ones.

And lastly, one more reason to question the relevance of the Case-Shiller report is that a government study on the same topic showed home values rising over the same period, not falling.  According to the Federal Housing Finance Agency, home values grew 1.7 percent from December 2008 to January 2009.

In the end, home values are a local phenomenon that can’t be summarized as a national “summary”.  National data can be helpful for watching longer-term trends, but it shouldn’t be used to make a “Buy or Not Buy” decision.

For that, talk with a real estate professional with access to local data instead.

Source
List of United States cities by population
http://en.wikipedia.org/wiki/List_of_United_States_cities_by_population

(Image source: LA Times)

To Search Active Real Estate Listings in Your Area, Visit www.webdigs.com

We keep going round and round on this house search business. Not even two weeks ago, I pulled the plug and thought it was best to wait to buy. Sell our house and go shopping with cash, even if we lose out on the tax break and the great interest rate. Honestly, I’ve felt like a dog chasing my tail - and that’s never pretty.

But the other night, Jason saddles up to me with the lap top. There’s an MLS listing on it and I immediatly bristle. “Come on, just look at it,” he says with the smoothness of a coke dealer. I do - and of course, there’s a lot to like. I and get the rush all over again. It has a loft with a high-ceiled livingroom making it a pool of light. I’m just a sucker for light.

Buying a house is a balance of trade-offs. (Well, actually all of life is a balance of trade-offs but as this is a real estate blog, I’ll try to limit it to just that.) Twice now, we’ve found adorable homes with some huge pluses. Mostly being in our price range with an open-floor plan, storage and a garage. Where we live there are nearly no garages with properties so to be looking at a house with a 2-car attached PLUS a bonus 2-car in the back for storage is like porn. (Jason says that when it’s a one-car detached it’s only soft core.)

But they’ve all had location issues - not bad ones, not “I don’t want to walk the streets at night issues,” but issues none the less. Too far from town or neighbors with the 40 year-old RV parked in the front yard sort of issues.

And am lucky to have Tom, my Webdigs Realtor, helping me remember to keep my eye on the prize. Do I want to rush into a house in an adrenalin pumped love affair (Yes! Yes! I swoon) …OR do I want to buy a home with long term value in downturn economies like the people in Edina who actually saw growth in 2008. (Oh Yeah, you’re right, Tom.)

The City of St. Louis Park wants its employees nearby. And there’s actual cash behind it. $2,500 bucks towards a home purchase and another cool grand if you pick out something from their foreclosed housing stock. Add that to the $8 K tax incentives right now …and Lordy if you’re a first time buyer and can get in on some of those programs - WOW!  We’re talking real money. (A Webdigs agent could help you shake the sugar tree and see what goodies fall out.)

There are some income guidelines. Two-person households must make $77K or under and $97K for a family of four.

Laurie Blake of the Star Tribune wrote that while there are other communities offering incentives right now, “an outright grant that is available to most buyers and can be used on any home in the city is an unusual incentive.”

If buyers sell before 3 years have elapse, the money will be treated like a loan that must be paid back, but the city is guessing you’ll love it in St. Louis Park.

Presently there are 25 grants available, so if you want to live where you work, get searching in St. Louis Park HERE. And read the community profile of St. Louis Park HERE.

St. Louis Park is offering people who work in the city a $2,500 grant to buy a home there.

For the purchase of a foreclosed house, the city will chip in another $1,000.

A couple weeks ago, I shared with the blogsophere that we bid on a house. (Then my computer took a turn for the worse.) Anyway it’s a house we looked at before and liked, but not loved. We bid exactly the amount we could afford. Not a penny more — and… someone else was looking at the house and put in a higher offer before us.

How do I feel about that? Pretty good actually. I’m happy for the owner to sell the house for closer to his price. And maybe the things that irked us about the house do not bother the new owners in the least.

And how cool is it that we were OUTBID on a house in this market? To me, it means that things are getting better. That has been the word in a broader sense, too. According to the realtor.org website February housing sales INCREASED.

The press release states: “Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 5.1 percent to a seasonally adjusted annual rate¹ of 4.72 million units in February from a pace of 4.49 million units in January…”

I’m sure the good deals in mortgages has a lot to do with it. I heard a report yesterday that some lenders were giving rates in the 4% range. Wow.

So our patient hunt continues…