Minneapolis – St. Paul Real Estate Information

Nov 06

Home Buyers Tax Credit Extension

The first-time home buyers tax credit has been extended. It also has been expanded to include existing home owners. First time home buyers can still get up to $8000 and existing home owners can get up to $6500.
For existing home owners, you must have used the current house as primary residence 5 of the past 8 years.
In both cases you need to have a signed purchase agreement by April 30, 2010, and close by July 1, 2010. For single people, the income limit has been raised to $125,000. For married couples the income limit is $225,000.
If you want more information, please click the CONTACT US link at the right.

Oct 30

Breaking news- Tax Credit Extension

Breaking news- Tax credit extension was passed! We have liftoff. More details coming soon, but it sounds like it does include EXISTING homeowners as well ($6500) as first time buyers ($8000) and extends until April 30, 2010.

Oct 05

One House you don’t want to miss!

South Minneapolis HomeThis is one house in South Minneapolis that you don’t want to miss! So much has happened here that it is easier to list the things that have not been updated. But since I’m using recycled electrons for this webpage, I’ll try to list everything that has been updated.

Let’s start off with the exterior. From what we can tell, the roof, the siding, and the windows were replaced in 2006, items that will afford you years of maintenance free living. On the south side of the house, a dormer was added to give impressive gains in the interior space. With the dormer addition, the roof on that section is brand new. Also, the back roof structure over the kitchen was completely taken off and reframed due to previous rot. That section of roof is also brand new.

Minneapolis Real Estate For SaleMoving on to the interior, you need to check out the unique hardwood floors in the living room and dining room. The original floor has been refinished and you’ll immediately notice the unique border pattern in the floor. The floor contains at least 5 species of hardwood. Perhaps you can spot all five? The living room is, as far as living rooms go, a good sized room, with a great view. Corner windows allow lots of natural light in.

One thing unique about this house is that it has a formal dining room. Many houses of this size do not have a formal dining room, and rely on part of the living room or part of the kitchen. In addition to the eat-in kitchen, this house also has the formal dining space. It is a great space to entertain, with easy overflow into the living room if more space is needed.

South Minneapolis Real EstateNow, turning the corner into the kitchen, you’ll be amazed with what you see. At 16×14 this kitchen is huge and fully updated. This kitchen will inspire you to become a master chef. You’ll want to fly to Italy to take cooking lessons, then come back and practice in your own kitchen. There is enough space to have separate preparation areas for several courses of dinner. The island is the centerpiece of the kitchen with a built-in stove and oven. The kitchen table is a butcher block top that was custom made by professional carpenter’s onsite. It is integral to the island, and provides a space to have breakfast. It is also the perfect height if you are kneading bread, or rolling out cookie dough. Sleek black appliances complement the cherry cabinets, and a tile floor rounds out the impressive kitchen. Be sure to check out the Chicago brick chimney that has been left exposed to the kitchen.

The main floor bedroom is off the living room and is good sized as well. Many times in these older houses, you’ll have a bedroom that has enough space for a bed and nothing else. This room is approximately 15×9 and has a good sized closet as well.

Master Bedroom Minneapolis House For SaleThe master bedroom is truly impressive at approximately 13×15 in size, and has 3 closets and plenty of space for a large dresser or computer desk. Windows on 2 sides allow a nice evening breeze to flow through the room to keep the warm summer nights cool. The dormer addition played a large part in expanding the size of this room to where a queen bed easily fits in the room with plenty of space to spare.

Moving down the hallway, you’ll find the impressive bath. No expense was spared in the redesign of the bathroom. The old bathroom was 3 feet narrower and didn’t have space for a shower. With the dormer addition, both of those problems were solved. There is a fantastic tile surround that looks terrific. Your guests will be impressed by both the style and the size of the bathroom.

Nokomis House For SaleBesides the fresh paint and carpet, and new 3 panel doors, this home has also been updated mechanically as well. The furnace and central air conditioner is brand new and efficient. The electrical system has been revised with plenty of capacity. The plumbing system was changed to the new pex tubing system and should serve the home well for many years to come.

What about the parking situation? There is currently a 1 car garage that has a garage door opener. It also has a lean-to shed that is part of it. The garage is nothing to write home about, but there should be enough space to tear it down and put up a 2 car garage in it’s place.

This home is close to many amenities. Sibley Field and Powderhorn Park are both nearby, as well as Lake Nokomis, and Lake Hiawatha. Both lakes are within biking distance, as well as Minnehaha Creek and Parkway. Just a little further down Cedar Avenue, you’ll find Caribou Coffee and the Grand Olde Creamery, where you can enjoy a wonderful ice cream on a warm summer night. Or take in a Pizza at Carbone’s Pizza right across the street from the ice cream shop. If you like to golf, this home is only 6 blocks from Hiawatha Golf Course.

One of my favorite places to eat is only 1 mile away, a wonderful BBQ shop, Ted Cooks 19th Hole Barbecue. This is the best ‘cue in Minneapolis, slow cooked with a generous portion of their home made mop sauce. It’s just a few blocks off the Hiawatha Light Rail line. Speaking of light rail, If you work in Downtown Minneapolis or at the Mall of America or at the Airport, the Hiawatha Light Rail line is near enough to bike to, which could save on gas and parking costs.

May 25

A Green Choice in Paint

Paint has been around for a long time. But when it comes to environmentally friendly paint, what choices do you have?

One company has come out with what they call a “premium quality, eco friendly latex paint.” This paint is made from suplus paint that’s collected at hazardous materials collection points. That means it’s not putting any more resources to create new paint, while keeping existing paint from being thrown out. At about $12 per gallon, it’s also not very expensive. They do have a limited range of colors, 12 to be exact. Visit them at: http://www.amazonpaint.com

May 12

Traditional Neighborhood Design

Hi, this is Minna, and I will be your guest-blogger for the day.  Today’s topic is Traditional Neighborhood Design (TND).  If you haven’t heard the term before, pay heed because it’s a fresh outlook on how to deal with suburban sprawl, and I have a hunch it’s going to be around for quite some time.  Let me explain what Traditional Neighborhood Design entails.

First of all, when I say the words, “community” and “neighborhood”, what comes to mind?  I think of taking a stroll through my neighborhood and waving hi to my neighbors who are outside grilling or something equally outdoorsy.  There is a feeling of vibrancy in the air.  I can walk to the grocery store and pick up a few things I might need that day, and then I can stroll back home at a leisurely pace.

I live in the ‘burbs, and this is not always possible.  One of the reason people live in the suburbs is because there is so much more space than in the cities.  The houses are bigger, the yards are bigger, and there is more room in general.  The problem with this is that subarban sprawl is not good for the environment.  When one person takes up so much space, well, it’s pretty much wasted.  In addition, a suburb is built for driving.  This means that you might have to spend the whole afternoon doing your errands as you drive from the post office to the supermarket to Home Depot.  It’s inefficient, to say the least.

Traditional Neighborhood Design puts all the essentials in one place.  These neighborhoods incorporate schools, offices, and commercial venues within walking distance.  In addition, they have plenty of paths and lanes for biking, walking, and driving.  They want to bring a sense of community back to the neighborhood, and be kind to the environment at the same time.  I think TND will be the way of the future, so learn about it now.

This website, The Town Paper, has good inforrmation on Traditional Neighboorhood Design.  It also has a list of TND cities in the country.  Scroll down for the ones in Minnesota.

May 12

Homeowner Consequences for a Successful Short Sale Vs. a Foreclosure

sale sale saleI have written previous articles defining short sales and foreclosures.  I will now compare the consequences to a homeowner of a foreclosure versus those of a successful short sale.

Future Fannie Mae Loan–Primary Residence

  •  A homeowner who loses a home to foreclosure won’t be eligible for a Fannie Mae-backed mortgage for 5 years.
  • A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed mortgage after only 2 years

Future Loan with any Mortgage Company

  • On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 which asks, “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?”.  This will affect future rates.
  • There is no similar declaration or question regarding a short sale.

Credit Score

  • With a foreclosure, a person’s credit score may be lowered anywhere from 250 to over 300 points.  Typically, this will affect the score for over 3 years.  
  • With a short sale, only late payments on mortgage will show.  After the sale goes through, the mortgage will be reported as paid or negotiated.  This will lower the credit score by as little as 50 points if all other payments are being made.  A short sale’s effect can be as brief as 12 to 18 months.

Credit History

  • Foreclosure will remain as a public record on a person’s credit history for 10 years or more.
  • A short sale is not reported on a credit history.  There is no specific reporting item for ’short sale’.  The loan is typically reported ‘paid in full, settled’.  

 

As you can see, it’s better to have a short sale than a foreclosure.  If you have any questions regarding short sales or foreclosures, please contact me at steven@stevenhong.com.  I will be glad to help you.

Apr 30

A Brief Explanation of Foreclosures

CB045296These days, you can’t read the headlines without noticing that there are many foreclosed homes around the country.   Since it is so prevalent, we thought it would be best to offer a brief explanation of how the foreclosure process works.  First of all, a little clarification.  ”In foreclosure” is the process that leads up to being foreclosed.   In addition, we are offering an outline of the process, and the actual timeline will vary from bank to bank.  

As you know, there are monthly mortgage payments when you buy a house.  If you miss a month, you will get a notice reminding you that you missed a payment.  You will get a similar notice if you miss the next month as well.  If you miss another month, you’ll receive a stern notice.  The fourth or fifth month missed will net you a packet of legal documents that explain the foreclosure process to you.  You will also receive a notice of a Sheriff’s sale  that will take place two to three months out.  The bank that is owns your mortgage will most likely buy your house in the Sheriff’s sale.

Let’s break away from the timeline for a minute so I can explain something else.  Some people who’ve missed a month or two believe that if they resume their payments, they are no longer in the foreclosure process.  This is incorrect.  If you miss one payment, you are in the process.  The only way to get out is to be paid up in full.  Otherwise, you are still in the process of foreclosure.  Ok.  Back to the timeline.

After the Sheriff’s sale, you have a Right to Redemption period that lasts six months.  In the Right to Redemption period, if you repay your mortgage in full, then you get your house back.  Chances are, if you’ve missed a payment or two, you won’t be able to pay off your mortgage in full.  So, when the Right to Redemption period is over, and the mortgage hasn’t been repaid in full, the home is formally foreclosed.  

It helps to have an agent guide you in this process.  If you would like more information, please contact me at steven@stevenhong.com

Apr 28

A Brief Look at Short Sales

for saleThese days, in real estate, the term short sales is frequently heard.   What is a short sale, you may wonder.  Well, let me explain it to you by giving you an example.  Let’s say you bought a house two years ago with a mortgage of $200,000.  Let’s say you’ve paid of $5,000 of the mortgage.  I’m just using random numbers, so don’t worry about the math.  Fast-forward to now.  Your boss is offering you a job in California.  It’s more of an order, really, and you take it.  You have to sell your home, and it’s now worth $175,000 due to the recession.  So, after all the fees, you recoup $165,000.  You are still $30,000 short on your mortgage, and you don’t have the money or assets to pay down the mortgage.   This is a short sale.  You and your agent will have to enter into short sale negotiations with your bank.  

So.   How do you know if you are a candidate for a short sale?  First of all, you have to be experiencing a hardship.  The example I hypothesized above (relocation) is just one of 17 acceptable hardships.  Here’s the full list:

  1. Loss of job
  2. Business failure
  3. Damage to property
  4. Death of a spouse
  5. Death of a family member
  6. Severe Illness
  7. Inheritance
  8. Divorce
  9. Mandatory job relocation
  10. Medical bills
  11. Military service
  12. Payment Increase or mortgage adjustment
  13. Insurance or tax increase
  14. Reduced income
  15. Separation
  16. Too much debt
  17. Incarceration

In addition to having one or more of the above, you must be financially insolvent.   As I said,  you cannot have any liquid cash or assets that could be used to pay down the mortgage.  

This is a brief summary of a short sale.  If you are in a situation like this, it’d would be helpful for you to contact an agent in order to help you with the process.  If you have any questions about short sales, feel free to contact me at steven@stevenhong.com.

Apr 28

How to Enjoy the Fruits of Your Labor

red paintYou’re selling your house.  It’s a big process, and you aren’t sure where to start.  You need to price it correctly; you  need to get it in tip-top shape for all the showings; you need to fix up a few things.  Now, many people think of the last item last.  In fact, many people put off the last item until after they have the house sold (on contigency, perhaps).  There are several reasons why people put off making the necessary updates and fixes to their house, e.g., buying new appliances, sealing the windows.  First of all, it’s time-consuming to fix up the house.  If the house doesn’t sell, it may seem for naught.  Secondly, it takes money.  Again, if the house doesn’t sell, it might feel like money that wasn’t well spent.  Why put in the time, effort, and energy if the house isn’t going to sell anyway, the thinking goes.

Think of it this way instead.  If you are going to put in new appliances and spruce up the house, shouldn’t you have some time to enjoy your freshened-up house before you sell it?  In addition, repairing the ceiling or putting in a new stove will attract buyers more readily than you telling them that you will get it down AFTER an offer is made on the house.  It’s far better for a potential buyer to see for him/herself how great the house is rather than how great the house could be.  Who knows?  Once you get the house all gussied up, you may fall in love with it all over again and not move after all.  

In the end, it’s a win-win situation for you to fix up your house before you put it on the market or in the early days of the selling process.  The possibilities are endless.

Apr 09

The Benefits of a Professional Opinion

HouseSelling a house is time-consuming and hard work, especially in today’s market.  If you are thinking about selling your house, you might feel a little overwhelmed by it all.  That’s why it is helpful to have a professional by your side–one who can guide you every step of the way.  In this blog entry, I am going to give you a brief overview of how a realtor will help you sell your house.  This is just an overview, so if you would like to discuss it in more detail, feel free to contact me.  

Pre-listing:  This is the first meeting between sellers and agent.  This will be an interactive interview in which both sides get to discuss what they want and need from the relationship.

  • Discuss and explain what are agency relationships.  
  • Obtain a signed Agency Relationships in Real Estate Transactions form.
  • Find out what the seller’s experctations are, as well as his/her wants, desires, motivation for moving, price, marketing plan, etc.  
  • Find out what the sellers are looking for in an agent.  What is most important to the sellers?
  • Discuss compensation in a real estate transaction, including the listing company’s policy for paying co-op agents.  This includes a discussion of the Code of Ethics Standard of Practice 1-12, Variable Commissions, etc. 
  • What is the sellers’ position?  Are they first-time buyers?  Are they relocating, moving-up, or retiring?

Marketing Plan Presented

  • Present a Comparative Market Analysis (CMA)
  • Discuss the venues in which the sellers want to market.  Discuss the pros and cons of said marketing.  For the real estate agent, present a comprehensive marketing plan–including on-line marketing.

Read more…