St. Cloud, MN - Real Estate Blog

I recently saw a question on Trulia.com in regards to buying a home and what does the buyer pay for the services of a real estate professional.  It was a great question because like most things in real estate, the answer is almost always "It depends."

Attached below is a copy of the exclusive right to represent buyer contract that is approved by the department of commerce and the Minnesota Association of REALTORs.

Download file

Note that this is the standard version of the Minnesota buyers representation contract and each brokerage will more than likely tweak it to suit their specific needs.  The reason for the "It depends" answer deals with lines 23-51 of this contract, how they have been changed by each individual brokerage, and if the seller (or seller's brokerage) is offering compensation. 

For example, if a buyer signs this contract and then purchases a home from a for sale by owner seller who is not willing to pay any commissions, they would legally be liable for the amount listed on line 33.  Most agents will be able to negotiate something with the seller in that situation to get compensated, but not always. 

Other things of note, make sure that as a buyer you understand line 44 and the difference between the two choices.  One of them could make you liable to pay your agent above and beyond what the seller was willing to pay to a buyers agent. 

Lastly, compare this against each offices specific buyers representation contract.  There will likely be changes that might include Broker Administrative Commissions (generally a flat fee to Brokerage) and various other things.  Like you have been told 1000 times, read and understand what you are signing.  Make sure that the agent you hire is knowledgeable about not only the market, but the forms that they are making you sign.  Also, make extra certain that you feel comfortable they are working in your best interests.  Hiring the right agent is a great part of your home buying decision that is often overlooked.

If you have any additional questions regarding buyers representation or compensation in real estate transactions, feel free to give me a call at (320) 492-2667 or e-mail me at jason@stcloudedina.com.

Jason Tangen - Real Estate Broker Associate with Edina Realty in St Cloud, MN

http://StCloudEdina.com - Search homes for sale in St Cloud, MN and surrounding areas

http://JasonTangen.EdinaRealty.com - Find open houses in Central MN

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Posted by Jason Tangen at 06:56 AM | Permalink | Comments (0)

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Here is a friendly reminder to people as they go out and tour homes at open houses - The agent working at an open house is in contract to look out for the best interests of the seller.  If you tell them information and it is pertinent to their sellers, do you think they are going to withhold it on your behalf? 

Things to consider when going through open houses:

1) When an agent asks you if you are working with another agent, you should say "Yes."  It'll keep them off your back.  If they ask who, just give them my name.

2) Any time that substantive contact is made, price and terms are starting to be discussed, an agent is required by law to go over Agency Relationships in Real Estate Transactions with you.  It is a breakdown of the roles that real estate agents/brokers perform as it pertains to residential real estate transactions.

More questions?  You should hire your own buyer's broker to work on your behalf.  Its generally paid for out of the sellers gains at closing.

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud, MN

http://JasonTangen.EdinaRealty.com - Search open houses in St Cloud, Sartell, and Sauk Rapids, MN

http://StCloudEdina.com/blog - Real Answers for Real Estate in St Cloud MN

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Posted by Jason Tangen at 09:31 AM | Permalink | Comments (0)

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For those of you out there who love to procrastinate until the last minute before doing anything, the time to buy a home and qualify for the $8,000 tax credit is now. 

Granted, that statement is speculative that the government will not extend its current policy to first time home buyers in 2010.

What do I think they'll do?  I'm putting it at about 60% that the government powers that be will decide to extend it.  Reasoning: If what they are saying is true and we have another huge wave of foreclosed properties waiting to hit the market, we might need the additional incentive one more year.  Also, if the interest rates do start creeping upwards, as some experts are predicting, we might need the additional incentive to keep the market rolling.

Personally, I hope they scrap the idea and let the free market correct the problem (sorry to my fellow agents out there who don't see it the same way).  From my perspective, why would I make my kids and grandkids pay higher taxes because we decided to give a little incentive to first time home buyers in 2010.  We've already ran up a pretty big bill with all of our other government programs in 2009.  In the grand scheme of things it seems to be a bad idea.

Penny for your thoughts on the matter.

Jason Tangen - Real Estate Broker Associate with Edina Realty St Cloud MN

http://StCloudEdina.com - Home of the e-Market Analysis (free home value estimator)

http://JasonTangen.EdinaRealty.com - Search homes for sale in St Joseph, MN

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Posted by Jason Tangen at 10:56 AM | Permalink | Comments (0)

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I have had multiple requests for this over the last couple of months as some parents are getting geared up for the 2009 school year.  The thought - "Why pay rent or dorm costs for my kids when they are at school when I could purchase a home and reap the benefits?"

I can't fault this thought process because overall it is a good idea.  There are a couple of things to consider before going out to purchase another home:

1) Is your kid(s) responsible enough to be your on-site property manager?

2) How long will your Kid(s) be attending school in the St Cloud area?

3) Can you handle a distressed and/or foreclosed property or would something a little more maintenance free be a better option?

4) Are you willing to let on of your kids co-sign to try and capture the $8,000 first time home buyers tax credit?

5) Will you be renting out additional rooms and to whom?

6) Where do you sign?? :)

There are many other questions that will come into play like how to finance the property, how far away from campus, etc.  If you'd like to learn more about making this option a reality, give me a call at (320) 492-2667.

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud

http://StCloudEdina.com - Home of the e-Market Analysis (free home value estimator).

http://JasonTangen.EdinaRealty.com - Search homes for sale in St Cloud MN

Best on the Internet for Real Estate St Cloud MN

Posted by Jason Tangen at 01:18 PM | Permalink | Comments (0)

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There are loads of real estate deals available for potential buyers in today's housing market.  Whether you are looking into the bank owned homes (REO's), short sales, builder foreclosures, auction properties, or just a truly motivated seller - there are literally hundreds of great buys for just about anyone looking to purchase in the St Cloud area.

But what if that great home is a traditional sale with an actual person as the seller?  How are you going to get the screaming deal on those homes?

Chances are likely that you won't get the lowest price on a traditional sale.  Instead, you will get piece of mind in place of the monetary gains (i.e. accurate disclosures, better kept home, etc.).  Even though you might not get the huge discounts on these homes doesn't mean that you can't get a really good buy.  But before you write that $100K offer on a $150K home, think about the other side of the equation.

1) Try to find out why the seller is selling.  If they don't need to move, they more than likely won't even slightly entertain a lower offer.

2) How are they priced against the market?  If they are competing with a bunch of foreclosures in their development, did they price accordingly?  If they are only a couple of thousand dollars higher than a similar bank owned property, they probably don't need to come down that much.

3) How much did they pay for their home?  Having a ballpark estimate of what someone owes on a home can help you figure out how much they might be willing to lose.  While this has no bearing on value, it might help you better understand their bargaining position.  If they owe $100K on a home and they are sitting on returnable bottle boxes instead of furniture - they probably can't afford to write a $10-20K check at closing.

Let's look at a case example (this is a fictitious sample).

Owner is selling a home for $125,000 that they bought for  $120,000 back in 2003 with $3,000 in closing costs added in for a mortgage of $123,000.  Will they take a $100,000 offer?  Or will that offend the seller into not negotiating?

There isn't enough information there to determine what is the best situation.  What you need to know (if you can find out) is why are they leaving?  What is the price of the homes selling around them? 

There are many variables that come into play when trying to figure out what is the best price that one can purchase a home.  Before you submit an offer that will cost you more in the long run, do some homework.  An offer of $130K on a $140K home can get a home for a buyer cheaper (after counter-offers are completed) than an offer for only $100K on the same home.

Consult your real estate professional to learn more.

Jason Tangen - GRI, e-PRO - Real estate broker associate with Edina Realty in St Cloud MN.

http://StCloudEdina.com - Get a free list of the bank owned (REO) properties available on the St Cloud MLS.

http://JasonTangen.EdinaRealty.com - Search for Open Houses in North St Cloud.

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Posted by Jason Tangen at 08:55 AM | Permalink | Comments (0)

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While I won't get into what I don't like about these stimulus bills that the government keeps passing (with a seemingly limitless amount of money), I do want to stress one of the changes and how it affects first time home buyers.

Last year, first time home buyers were granted a $7500 tax credit that was to be paid back at a rate of $500/year for 15 years.

With the new stimulus bill that was just signed by President Obama, first time home buyers who purchase from Jan. 1st of 2009 through the end of the year will be granted a true $8000 tax credit.  This money doesn't need to be paid back.

There are some income guidelines, but for the most part, everyone who is buying their first home will be able to obtain this credit.

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty St Cloud MN

http://StCloudEdina.com - Search real estate in St. Joseph, MN

http://JasonTangen.EdinaRealty.com - Home of the e-Market Analysis.

Posted by Jason Tangen at 08:45 AM | Permalink | Comments (0)

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I would like to thank Jada Camara of Edina Realty Home Mortgage for providing me with the information on this program.  As it turns out, Police Officers, EMT's, Firefighters, and Teachers are able to purchase HUD foreclosed properties and have 1/2 of the loan as a silent second mortgage (no payments and no interest) that is to be forgiven in three years (no obligation to pay!).  That means that any people in these professions can get a HUD property for 1/2 price if they live there for only three years.  Think about it, if you buy a home for $150,000, in three short years this program will make it so that you only owe $75,000!  Definitely worth looking into.  Here are some of the qualification guidelines and a brief program overview that Jada typed up for me:

Good Neighbor Next Door Loan Program

 Overview

• Entitle a full time Law Enforcement Officer, Teacher, or Firefighter/Emergency Medical Technician to purchase specifically designated HUD acquired homes
• At a 50% discount from the list price 
• Property must be located in a revitalization area
• Successful bidder is selected by random lottery
• Offers must be submitted through real estate brokers

 Purchaser Qualifications

• Law enforcement officer, Teacher, or Firefighter/emergency medical technician
• Good faith intent to remain in employment status for one year
• Earnest money
• Fulfill owner occupancy period- 36 months
• No residential real property ownership for 1 year preceding offer submission date by either spouse
• No prior participation in program by either spouse
• Only one spouse may purchase
 Law Enforcement Officer
• Employed full-time by a law enforcement agency of the federal government, a state, unit of general local government, or an Indian tribal government; and
• In carrying out such full-time employment, the person is sworn to uphold, and make arrests for violations of, federal, state, tribal, county, township, or municipal laws

 Teachers

• Employed as a full-time teacher by a state accredited public school or private school that provides direct services to students in grades pre-kindergarten through 12; and
• The public or private school where the person is employed as a teacher serves students from the area where the home is located in the normal course of business
Firefighter/Emergency Medical Technician
• Employed full-time as a firefighter or emergency medical technician
• By a fire department or emergency medical services responder unit of the federal government, a state, unit of general local government, or an Indian tribal government serving the area where the home is located Owner Occupancy Term
  • 36 months
  • Starts on 30, 90 or 180 days from closing according to property condition

    Interruption of Owner Occupancy Term

    • Permitted if the interruption is necessary to prevent hardship as determined by HUD
    • Request in writing received 30 days or more from desired vacation date
    • Agrees to resume occupancy Special Financing Incentives
      • Finance all reasonable and customary closing costs
      • Down payment of $100May Not Be Used for Multi-Family HousingPost Purchase Obligations
        • Continue to own, and live in as his/her sole residence, the home purchased through the GNND Sales Program; and
        • Certify initially and once annually thereafter during and at the conclusion of the owner-occupancy term that s/he was at all times fully in compliance with paragraph (a) of this sectionFor more details, check out the flyer in the file below.

          Download file

          To view the HUD foreclosed properties that qualify for this incentive, visit http://www.tenmanagement.com/listings/property-list.do.

          To learn more about Jada Camara with Edina Realty Home Mortgage, visit http://jadacamara.edinarealty.com/.

          Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud, MN.

          http://StCloudEdina.com - Home of the free on-line home value estimator, the e-Market Analysis.

          http://JasonTangen.EdinaRealty.com - Search real estate in St Cloud, Minnesota and surrounding areas.

Posted by Jason Tangen at 07:31 AM | Permalink | Comments (0)

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I read that in Southern California home prices were down 30+% in 2008. 

I also read that there was a huge increase in the total number of homes sold last year in Southern California.???

That makes for a lot of people trying to buy up all of the great deals.  I know of a couple of old military friends from out there who had to make offers on multiple homes just to get into one.  They kept getting stuck in multiple offer situations with other buyers wanting the same great deal.

So what do you need to know if you are looking into buying one of these great bargains?

1) If you want the home and there is a lot of demand for it, you may have to write over their asking price.  As crazy as it sounds, this is happening quite frequently on homes that have been priced to move.

2) Have your pre-approval ready to go.  In the past year I have had 3 people lose out on homes because they didn't want to go to the bank before they started looking at homes.  All three of them found the great deal... and lost it because their loan officer wasn't in until Monday.  Tough breaks.

3) Be prepared to move.  The good homes sell fast.  I'm not talking within days, I'm talking hours.

4) If the home you wanted gets sold, write a back-up offer on it.  You'd be surprised how many home deals are falling apart these days because of financing reasons.  You could get a second shot at the home of your dreams.

5) Hire a buyer's broker to work on your behalf.  Make sure that you have someone looking out for your best interests and that can get things done in a timely fashion.

I received a call from a potential home buyer today that was quite enlightening.  He wanted to see a home that was back on the market because the buyer couldn't get financing thanks to some of the recent loan changes.  Not everyone has an extra 5-10% to put down on a home above what was needed in December.  I know this because It was my clients who had the financing fall apart.  I told the potential buyer that I needed to check what the current status was on the home.  I wanted to check because there were at least 4 interested buyers back in December when my clients wrote their offer.  It could have already sold again.

It turns out the home had already been re-sold.

This isn't good news for me as I could use the sale.  The potential buyer tells me that he was ready to buy the home back in early January.  Unfortunately, they hadn't sought out proper representation at the time and lost out.  Now, they have lost out again because they didn't have someone write a back-up offer for them back in early January.  My recommendation to them - get proper representation and write a back-up offer now.  Who knows, this offer could fall apart too. 

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud.

http://JasonTangen.EdinaRealty.com - Search homes for sale in Sartell, MN and surrounding areas.

http://StCloudEdina.com - Get a free list of the bank owned homes on the St Cloud MLS.

Posted by Jason Tangen at 04:05 PM | Permalink | Comments (0)

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I hate to say it, but I think the end is here.  My guess is that within the next year, we will be back to only one option for 0% down home purchases.  The VA loan.

Am I sad?

Not really.  I think that a lot of people are not meant to be home owners.

Do this hurt the real estate market?

Most definitely.  If we take all of the first time home buyers out of the equation that don't have downpayments, we are left with 4 first time home buyers (a sarcastic statistic - say that 3 times fast).  We already have enough problems with the buying chains being broken by every foreclosure that sells.  If we take eliminate more of the buyer pool, our problems will magnify.

But this isn't really the negative that my last paragraph makes it sound to be.  It is a good thing to pre-qualify people that would like to buy homes.  What better way to ensure that they can handle their money then to make them save some.  If someone wants to buy a home bad enough, they will save the money to get it.  I know that it sounds harsh, but if you really think about it, I think you will agree.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

www.StCloudEdina.com - Search real estate in St Cloud MN

Posted by Jason Tangen at 04:16 PM | Permalink | Comments (0)

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For those of you in the St Cloud area who were planning on purchasing a home with 0% down, your loan options are disappearing fast.  It sounds like as of April 7th, 2008 Freddie Mac will follow Fannie Mae's lead in declaring the majority of the areas covered by the St Cloud MLS declining markets.  This means that as a minimum for a conventional loan in these areas buyers will need 5% of the sales price.  Gone are the 80/20 conventional loans that were so prevalent just last year.

So what does a home buyer with no money do? 

How can you get into a home with 0% down?

The answer: Get creative.

I know the most common program being used today is theFederal Housing Administration's (FHA) loan with 6% seller paid closing costs and down payment.  As long as the home appraises, a buyer can ask the seller to pay the minimum 3% required down payment and up to 3% in closing costs.  I have seen about 12 local lenders in the St Cloud area utilizing this new product.

What does this mean to you as a buyer?

Answer:  You are basically pulling out the equity on a home purchase (assuming that you purchase a home with some instant equity) to pay for your closing costs and down payment.  This will make it so that it takes a few years before you can even think about re-selling a home.  It's perfect if you plan on staying in the area for many years to come, but not if you aren't sure.

Numbers for reference:

List Price = $141,000

Offer = $150,000

Seller Pays = $9000 ($4500 for minimum 3% down, 3% for closing costs)

Effect = Seller gets $141,000   /   Buyer mortgages $150,000

As long as the home appraises for at least $150,000 this deal works.

If you have heard of some other creative financing options, and you are afraid about their implications, post them here for everyone to see.  If they are good, I would love to be able to tell my buyers about them.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud MN

http://jptangen.featuredblog.com - Blog postings on www.REALTOR.com

Posted by Jason Tangen at 08:17 AM | Permalink | Comments (0)

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Let's ponder this for a second.

2-3 years ago, all of the headlines in newspapers and on television told the general public it was a great time to buy.  Interest rates were still historically low and properties were appreciating at a great pace.

Fast forward to today.  Now all of the headlines in the newspapers and on television tell us about the horrible state of the real estate market.  Home prices are depreciating and nothing is selling (according to the media).

Now I want you to decide when you would have preferred to purchase a home.  Would you prefer to have bought when the home prices were inflated and the media was telling you it was great?  Or would prefer to purchase a property when home prices are lower, interest rates are roughly the same, and the media is telling you that the real estate market is horrible?

Something to think about.

"When everyone else is walking, run.  When everyone else is running, walk" - I can't find who said this first, but I know it wasn't me.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud

www.StCloudEdina.com - Search Real Estate in and Around St Cloud MN

www.JasonTangen.EdinaRealty.com - Search for Open Houses in and Around St Cloud MN

Posted by Jason Tangen at 09:34 PM | Permalink | Comments (0)

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There is one defining thing that always comes into play when someone says they are a REALTOR and not just a real estate agent.  That is the Code of Ethics that every REALTOR is to follow.  What I would like to touch base on in this post is Article #1:

"Article 1
When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS^® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS^® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS^® remain obligated to treat all parties honestly. (Amended 1/01)" - Copied directly from link above.

What I like the best is in the first line: "... protect and promote the interests of their client"

I have been given some grief about asking for more than just a pre-approval letter from a couple of lending institutions recently.  They don't want to divulge the buyer's loan package (30 year fixed, ARM, etc.) or what my buyer's good faith estimate reads.  I feel that this is a necessity if you are looking out for your client's best interests.  Am I wrong?

How would you feel as a REALTOR, bound by the code of ethics, if you got to a closing and found out there that your buyer was using a negatively amortized loan on a home they plan on living in for an extended period of time?  It would raise a red flag in my head that these people probably cannot afford this home.

Think of how many foreclosed properties could have been staved off if the real estate professional had learned the ins and outs of their client's loan package in advance.

The other aspect of this, how can you tell if your client is being gouged on their loan application with "fluff" fees if you don't look at their good faith estimate?  As REALTORS, we have the duty to tell our clients if their banks are charging exorbitant amounts for appraisals or whatever.

A plea to REALTORS:  Please re-look over the Code of Ethics and take the time to analyze your business practices.  Are you in violation?

A plea to banks:  Lets work together to get our clients the best loan, best home, and best service possible.

A plea to buyers:  Be honest with us about your comfortable range for house payments.  I realize that an extra $20,000 can go a long way in what amenities you can get in a home.  But you really want to be able to keep the home right?

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud

http://JasonTangen.EdinaRealty.com - Search real estate for sale, open houses, etc. in Central MN

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud, MN

Posted by Jason Tangen at 11:24 AM | Permalink | Comments (0)

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Is there a billboard (Franklin Outdoor Advertising or Lamar Advertising Company) somewhere near St Cloud MN that has this statistic printed on it?  I have heard this exact number recently from at least 10 different home buyers that are thinking about writing an offers on foreclosed properties.

Below are the statistics.  Nowhere in my research did I find that foreclosed properties are selling on average for 85% of their asking price. 

*Please note that these are average numbers.  Each real estate transaction is unique and a home's price needs to be evaluated on an individual basis to show what is (or isn't) a good deal.

Under 30 Days on Market: Foreclosed properties are being sold at an average of 98.3% of their original asking prices.

30-60 Days on Market: Foreclosed properties have had price reductions on average of just over 7%.  Homes in this range are selling at 97.8% of their new asking prices (90.9% of original asking prices).

60-100 Days on Market:  Foreclosed properties have had price reductions on average of just over 11%.  Homes in this range are selling at 96.8% of their new asking prices (85.9% of original prices)

100+ Days on Market:  Foreclosed properties on the market more than 100 days have had price reductions on average equaling more than 17% of their original list prices.  These homes are selling at 93.4% of their new listing prices (which equates to 77.4% of the original list price).

So what can you take from these stats?  If you offer 85% of the asking price on a foreclosed property that has been listed for more than 100 days and the bank counters back right in the middle, you are doing an OK job of negotiating.  I'll give you a "C".  You can also guesstimate that if you offer 85% on a foreclosed home that has been listed less than 60 days, the bank won't budge much from their asking price.

Want more information?  Are you curious what the average sales price is for a new construction home in Sartell?  Or how about what percentage of the homes sold on the St Cloud MLS are foreclosures?  Post your questions here and I can pull you just about any stat from the St Cloud MLS.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud

The 192,326th Best REALTOR in the US. - This is a joke.  I have no way of knowing (or proving) where I would rank in a nationwide "Best REALTOR" contest.  I know that I don't sell as many homes as some of the top producers in the country so I'm not #1.  But I also know that my clients love my services.  Funny enough, this stat would put me in the top 15% of REALTORS nationwide.

Posted by Jason Tangen at 08:41 AM | Permalink | Comments (15)

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If you hem and haw too much, you'll lose the property.  I'm sure all of you have heard that over the past few years when the market was in full swing for sellers.  What is surprising to me is the amount of times this has happened recently in regards to the foreclosures available to purchase around St Cloud, MN.

There are 3 such properties that I have had people request showings on that have sold within a few hours of being listed.  The most recent property was in St Joseph.  It was a fully finished bi-level home selling for under $100,000.  I bet you that I have had 8-9 people ask to see this home within the last few days, but it sold almost the moment that it was available.

My advice to those of you who are looking for the "unbelievable" buys - don't hesitate to pull the trigger and get your real estate professional to show you a home the moment it becomes available.  It might not be available to see tomorrow.

Lastly, if you know your search criteria, get your REALTOR to have an automated search run for you that will notify you immediately when a property comes available.  The faster you know about a home that is perfect for you, the better your chance of buying it.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud

REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 03:35 PM | Permalink | Comments (0)

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I am reminded, once again, of the value of having a home de-winterized prior to performing a home inspection when purchasing a property.  With all of the vacant properties that are on the market, it only makes sense that sellers winterize their homes to ensure no pipes burst during a Minnesota Winter.  The problem is, sometimes pipes crack even when the de-winterization performed.

My buyers (purchasing a foreclosure) were at a sticking point in negotiations dealing with whether or not the bank was going to de-winterize the home for the home inspection.  Myself and Lori Reinert (another great real estate agent with Showcase Properties) decided to just split the cost of de-winterizing the home because we knew the value that this knowledge is to potential buyers.  As it turns out, there was a bad pipe between the city's main shutoff valve and the home's water meter.  If this wasn't detected, the new home owners would not have known about this prior to moving in to the home.

For everyone who is out there looking at purchasing a home during the winter months in Minnesota, be sure to get the home de-winterized and have a professional home inspector walk through the home.  I know that it costs a little bit of money, but the piece of mind and knowledge of potential problems make it more than worth the money.  If you need a couple of names of good home inspectors in the St Cloud area, give me a call or visit some of my prior blog posts in the business testimonials area.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud MN

www.StCloudEdina.com - Search Homes for Sale on the St Cloud MLS

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 11:35 AM | Permalink | Comments (0)

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I am a little bit in awe (not in a good way) that some of the larger real estate companies do not utilize any sort of broker reciprocity on their national websites.  It would seem that with all of the real estate technology that is available, they could easily include more than just their offices property listings.  Maybe there is something that I am missing.

For the time being, if you are looking for real estate listings somewhere in the US (not just St Cloud MN), I recommend using either a local real estate website or REALTOR.com.  If you plan on using a local real estate website, make sure that is has some form of broker reciprocity and gives you all available real estate listings.

As a last note - if you are searching for homes for sale in St Cloud MN or the surrounding Central MN area, make sure that you find a website that includes both St Cloud and Minneapolis Multiple Listing Service (MLS) systems.  With the influx of foreclosed properties in Central MN that are being listed by real estate agents in the Twin Cities, it behooves any potential buyers to see all available properties.  There are lots of real estate agents that belong to either the St Cloud MLS or the Minneapolis MLS but not both.  Without belonging to both MLS systems (or subscribing to both in their broker reciprocity agreements), specific websites might make it impossible for buyers to view all of the deals that are currently available in the real estate market.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty of St Cloud MN

jasontangen.edinarealty.com - Search Homes for Sale Everywhere in Minnesota

www.StCloudEdina.com - Home of the e-Market Analysis (Free Home Value Estimator)

If you have questions as to whether or not the website you are currently using is giving you every property available, post the website here and I will compare it against both St Cloud and Minneapolis MLS systems.

Posted by Jason Tangen at 12:04 PM | Permalink | Comments (0)

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I was directed the other day to Hotpads.com from another real estate informational website and was very impressed with Hotpad.com's features.  There is an easy search that will organize real estate properties that are listed for sale by their potential mortgage payments.  For example - if you are willing to spend $900 a month to rent a property, this search feature will show you what homes you can afford to purchase within that same price range.  Check it out and tell me what you think.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud

www.StCloudEdina.com - Home of the e-MARKET ANALYSIS (Free Home Value Estimator)

jasontangen.edinarealty.com - Search the St Cloud MLS

Posted by Jason Tangen at 04:21 PM | Permalink | Comments (0)

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With the first snow storm of the year coming soon, it's fairly safe to say that the real estate market should start a little break as it gears up for the spring rush.

 Things to know:

1)  The best deals on homes generally happen during this time of year.  There are many sellers in the area who have to sell their homes no matter what.  Take a good look at the homes available to purchase and see if there aren't one or two that might strike your fancy - the sellers may be willing to make a deal.

2)  Rates under 6.00%.  That's right, even though the money is a little harder to come by, for those of you who can get loans the rates are phenomenal once again.

 3)  According to the St Cloud MLS, there are more than 200 foreclosed properties just waiting to be plucked off the market.  I've heard rumor that Freddie Mac wants to try and unload as many of their foreclosures as possible in December.  I know for a fact that no bank wants to hold a foreclosure through the winter months in Minnesota.

What's your thoughts on the real estate market?

Jason Tangen, GRI - Broker Associate with Edina Realty St Cloud

www.jasontangen.edinarealty.com - Search the St Cloud MLS

www.StCloudEdina.com - Home of the e-MARKET ANALYSIS (Free Home value Estimator)

Posted by Jason Tangen at 08:28 AM | Permalink | Comments (0)

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I recently had a person ask to see a home that had sold almost two years ago!  Where did they find this property?  On the St Cloud Times' Home Times website.  I've done a little research and found some glaring problems with the St Cloud Times' search results of homes for sale.  Below are the statistics I found with a brief search of homes for sale in Sartell MN with a price range of $175,000-200,000*:

1)  The St Cloud Times website has 13 properties available in Sartell MN between $175,000 and $200,000 - There are currently 37 listed on the St Cloud MLS

2)  Of the 13 homes, 12 are listed by real estate professionals in the St Cloud area - One FSBO.

3)  Of those 12 homes the St Cloud Times website offered by real estate professionals, over 41% had inaccurate prices, addresses, or were no longer available to purchase.

4)  One of the homes was a property that hasn't been listed for sale by that real estate agent in almost a full year.

Until the St Cloud Times changes the way they provide homes for sale to potential home buyers on their website, I highly recommend going to any of the personal or company websites in the St Cloud area that is equipped with some sort of Broker Reciprocity home search.  For the FSBO properties, I recommend one of the national sites like FSBO.com.  With the potential to search homes for sale on a multitude of websites, why settle for inaccurate and untimely information?

*Data obtained by comparing listings on the St Cloud Times' Home Times website and the information provided on the St Cloud MLS.

Jason Tangen, GRI - Broker Associate with Edina Realty St Cloud

www.StCloudEdina.com - Search The St Cloud MLS

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 05:29 PM | Permalink | Comments (0)

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I had this request from a person in the local community regarding what the average difference was between the assessed value for tax purposes and the average market value (sold price) for homes.  I've asked if I could include it here for everyone to everyone to review.  The following is a copied version of our e-mail communications.  If you would like similar information about a different area surrounding St Cloud MN, post your requests here or e-mail me at jason@stcloudedina.com. :

Inquiry Message: Jason, I was wondering if you could tell me approximately which percentage a home's market value is over the tax value in Waite Park . Ie: Your tax value is at $112,000. What percentage over that would you estimate a homes true value to be? 10-15% or something? I would appreciate any info you could give. Thank you, S.T.

Response: S.T,

Posted by Jason Tangen at 05:28 PM | Permalink | Comments (1)

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I write this post due to an unfortunate situation revolving around a couple of potential new home buyers.  I was speaking with these potential clients about buying a property in Sartell, MN.  We decided to schedule a showing for them at a foreclosed property that was being offered at a phenomenal price in the Sartell area.  To make sure the numbers concerning the loan were accurate, these home buyers wanted to wait until the right property came along before starting the pre-approval process.  As it turned out, we went to the property that was the perfect fit for them.  We decided it would be best if they hustled bank to their bank to get pre-approved.  Unfortunately, while waiting for the pre-approval to come back from a local bank, a different offer was presented to purchase the home.  Long story short; the bank accepted the other offer with a pre-approval letter as we couldn't deliver our pre-approval letter in time.

The biggest benefit when it comes to being pre-approved is that home buyers know exactly what they can and cannot afford.  This can save everyone a ton of time and remove the potential disappointment of looking at homes outside a buyer's price range.  Another reason for being pre-approved for a loan purchase prior to looking at homes is because the good deals in real estate always sell fast.  I know that in the current real estate market a home receiving more than one offer seems kind of rare, but I have been in five multiple offer situations in the last two months.  If a home is priced below market value, there are plenty of buyers waiting to snatch it up.  Potential home buyers need to be able to act fast if they want that great deal.

If you are unsure where to go to get pre-approved for your next home purchase, below are a few of the good loan officers around St Cloud, MN.

Bill Pennings - Wells Fargo Home Mortgage

Mark Timpane - Edina Realty Mortgage

Sharon Schumacher - US Bank

Aaron Reznechek - Wells Fargo Home Mortgage

There are many other outstanding loan officers in the St Cloud Area Chamber of Commerce and around St Cloud in general.  The above four loan officers are ones that I have utilized used most recently.  All of the loan officers contained in this post do a phenomenal job of making sure that their clients get the right loan package for their home buying needs.  If you have questions, comments, or concerns about making your home purchase in the St Cloud area, post them here for answers and review.

Jason Tangen, GRI

Real Estate Broker Associate with Edina Realty in St Cloud, MN

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud, MN

Posted by Jason Tangen at 11:40 AM | Permalink | Comments (2)

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It seemed like there was no way we could see mortgage rates stay this low for this long.  Early this year I was expecting to see mortgage rates hover around 7.0% this winter and raise even higher next spring.  Instead, it seems that the various economic factors that come into play as banks figure out their lending rates are as uneasy as the real estate market in general.  All of the doubt and negativity that has flooded the real estate market by the recent sub-prime lending practices and the extreme deflation of markets like California, Nevada, and Florida (to name a few) has found its way across the country.  Everyone feels like the real estate market is in the tank because this is what we keep hearing. 

I propose that we look at the St Cloud, MN real estate market and the surrounding areas of Sartell, Sauk Rapids, Waite Park, and St Joseph to get a feel of what we should be doing in Central MN.  Interest rates are currently just over 6.0% (I've seen 5.95% on a couple of national stat sheets) and Bernanke, the Chairman of the Federal Reserve, is expected to lower the Fed's rate again on Halloween.  The average and median home prices in the St Cloud area are only down approximately 1-2% as compared to 2006.  There are a literally 140+ foreclosed properties on the St Cloud MLS as well as hundreds of other distressed sales allowing for some phenomenal deals.  So why should a buyer want to purchase a home in the St Cloud, MN area now?

Simple breakdown:

   Great interest rates allow buyers to qualify for more home with less money.

   More deals and some true steals available to potential buyers.

   Overall, home prices are fairly stable in the St Cloud area.

Have you heard this phrase?  "When everyone else is walking, you should run."  I'm giving a big hint that todays real estate market is the perfect time to fight the system and buy up the houses that are being sold at great discounts.  I just sold a home to one of my buyers for $125K, minus closing costs to be paid by the bank, that appraised for $153K without the improvements that can be done to the inside of the home!  My buyer is looking at $30K in instant equity for just buying this home.  I personally purchased a third property earlier this year for just over $180K that is valued at almost $220K.  These deals are everywhere with the amount of foreclosures that are currently available.  If you haven't made your home purchase yet and would like to get set up to view the foreclosures currently for sale on the St Cloud (or Minneapolis) MLS systems, visit www.StCloudEdina.com/Foreclosures.html.  If you are still a little nervous about making your home purchase, please post your questions, comments and concerns below for answers and review.

Jason Tangen, GRI

http://jasontangen.edinarealty.com/AgentHome/Homepage.aspx

http://www.StCloudEdina.com

Posted by Jason Tangen at 09:13 AM | Permalink | Comments (0)

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I'm often asked what the true monthly cost is in owning a home.  I love this question because it brings up several great points about the benefits of home ownership.  Obviously you have to make monthly payments into your motgage company, so you aren't getting to live in a home for free.  Therefore the question becomes how is it more beneficial to make mortgage payments vs. making rent payments? 

It is true that purchasing a home will cost you more money out of pocket every month than making rent payments.  Once you calculate in your principle and interest payment to the bank, property taxes, insurance, and potential mortgage insurance you will find out that there is indeed a big chunk of money making up your monthly motgage payment.  But there is the investment side of home ownership that makes it truly worth a persons time and money.  There are tax deductions for property taxes, insurance and mortgage insurance payments.  There is the principle reduction on your original loan (just like putting money in a really big piggy bank).  There is also the fact that over time a home will appreciate in value.  We haven't seen really any sort of appreciation in the St. Cloud and surrounding areas over the past few years, but historically you can almost guarantee a 2-3% appreciation rate every year.  Note that we are in much better shape than some real estate markets that have seen actual decreases in property values of 10-20% or more in the last few years.

So how does it all work out?  I have attached below a sample of a recent effective monthly payment spreadsheet.  I put this together for one of my buyers on a home roughly $200k in price.  The actual monthly payment, with 0% down, was just over $1650/mo with principle, interest, property taxes, homeowner's insurance, and mortgage insurance.  After all the tax breaks, priciple reduction, and appreciation (calculated at 2%) were removed from the equation, the effective payment is really only $620/mo!  Granted you won't notice this effective monthly payment while you are living in the home.  Your pocketbook will only feel the actual monthly payment.  It's at a time of sale, when you get to recoup the amount that you have stored in you "piggy bank" as your equity, that you will reap the rewards.  Go ahead and use this spreadsheet if you'd like to see what an effective monthly payment might be for you as you make a real estate purchase.  Post any questions, comments, or concerns as to the use of this spreadsheet below.

Download file

PLEASE NOTE - You have to make the actual payment every month.  Do not use this file to create a reason for over-extending yourself with a bad mortgage.  Every home at every price can be used as an investment.  Start with a home that fits into your monthly budget and from there you can work your way up to your dream house.  Also note that not all people are meant for home ownership.  If you are planning to move again within the next few years, it may be difficult to gain enough equity to sell at a monetary gain.  Please contact a professional before deciding it's time to buy a home.  In most all situations it's FREE to work with a buyers agent in Minnesota so what do you have to lose?

 Jason Tangen

www.stcloudedina.com

www.stcloudedina.com/blog - REAL ANSWERS for REAL ESTATE in St. Cloud, MN.

Posted by Jason Tangen at 11:47 AM | Permalink | Comments (0)

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An unexpected larger drop in the Fed's rate should have positive impact on the real estate market in St. Cloud as well as around Minnesota.  I was expecting a 1/4 percent drop in the Fed's rate, but the 1/2 percent drop was definitely much larger than anticipated. 

How does this affect you in buying or selling a home?  As a buyer you will now be able to qualify for a larger amount of money and purchase a potentially better home than before.  As a seller you can expect an increase in activity on your homes as buyers that have been waiting will now be thinking about moving forward with their home purchase. 

This reduction in interest rates will also help the shaky real estate maket by alleviating some of the hikes that were expected in existing ARM option mortgages.  With the high number of mortgages that are already in default, this drop in interest rates will slow down the addition of new foreclosures to an already flooded market.

If you have an existing ARM loan, or some hybrid interest only style mortgage, now is probably the time to refinance.  Many of the loan officers and brokers were willing to put people into mortgages that were not in the homeowners best interests in recent years.  Double check and make sure that you are in some sort of fixed rate mortgage while the interest rates are down.  It may cost you a little money now, but the savings will be very beneficial to you in the future.

Unsure where to go to refinance your loan or get financing for a home purchase?  Give me a call at (320) 492-2667 or post your questions, comments and concerns here for answers and review.

Jason Tangen

www.stcloudedina.com

www.stcloudedin.com/blog - REAL ANSWERS for REAL ESTATE in St. Cloud, MN

Posted by Jason Tangen at 09:29 AM | Permalink | Comments (0)

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One of the greatest things about moving to Edina Realty in St. Cloud from Coldwell Banker Herges Realty is the technology advancements that Edina Realty offers its agents and clients.  Just one of the technological hits, in my eyes, is the interactive property search for home buyers.  If you haven't already viewed the Edina Realty search feature for real estate in St. Cloud MN and the whole of Minnesota, I highly recommend giving it a test drive.  The url is http://jasontangen.edinarealty.com/listing/ListingSearch.aspx?Clear=2.  I know that once you try this new property search feature you will be very happy that I am not using my old search system any more.

Another thing to consider as you are looking to make a home purchase is the recent foreclosure market.  If you haven't already signed up to get a list of the current foreclosed properties on the St. Cloud MLS, you can sign up for free at www.stcloudedina.com/Foreclosures.html.

As you are searching the internet, I hope that you are willing to post your real estate related questions, comments, and concerns here for answers and review.  You can keep your post anonymous and everyone will benefit from the questions and answers in the future.

Jason Tangen

www.stcloudedina.com

Posted by Jason Tangen at 09:05 PM | Permalink | Comments (0)

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