So you thought that it was all gloom and doom in the real estate market.   Well looky here!

There are signs that are showing improvement and we are all hoping the time will soon be here

when we see regular and consistent growth once again.  Click below for the recap.   Enjoy!

MAAR 2011 Wrap-Up

Wonderful and spotless Oakdale end-unit townhome with 2 bedrooms, 2 baths and 2-car attached garage.

For more information or to schedule an appointment click below:

408 Hickory Lane. Oakdale, MN 55128

Be one of the first to see this great new listing with a great and easy living floorplan, lots of updates and a two + car insulated and heated garage: a real man-cave!

For more information on this great home, click here:

1988 Memory Lane

North Saint Paul, MN  55109

Lake living right in the Twin Cities metro area. This great lakeshore property is located on  144 acre Lake Demontreville, a fully recreational lake with, rumor has it, great fishing!  The home, built in 1956, is unfinished and ready for you to make it your own.

7962 Hill Trail North

Lake Elmo, MN  55042

The market continues it’s healthy trend with buyer’s apparently undaunted, even with the time demands of the fast approaching holiday, in their pursuit of home ownership.

If you are interested in more targeted information for a particular neighborhood or zip code, be sure to visit my Market Snapshot Tab.

To view more info on the market from the Saint Paul Area Association of Realtors and to look at their great graphs, click below

Saint Paul Weekly Market Stats

Apparently shoppers are doing more than driving up the retail sales numbers!  House shopping seems to be just as popular.   Pending sales are up again by 36%, new listings are down over 9% and inventory is at about 5.7 months. Can it be long before the prices are driven up?

Read more and see cool graphs:

SPAAR Weekly Market Activity Report

Truly a gem with updates galore in a beautiful 3/4 acre setting.

Click Here to learn more:

7552 Stillwater Way North

Oakdale, MN  55128

Let’s face it, we all shop for the best deals we can get for our money.  Why should our lending costs be any different? Here are a few tips on how to negotiate good terms for the lending fees and rates on your Saint Paul real estate.

TIP  #1:  Shop lenders to get a lower interest rate on the mortgage.

It is not unheard of to approach your lender and simply ask for a better rate.  The worst that can happen is to be told no.  The best rates go to those with the best credit scores.  Know your credit score by obtaining reports from Equifax, TransUnion, and Experian .  If your score is not at its best, improve your credit score so you can qualify for a better interest rate.

TIP #2:  Negotiate lending fees.

All lenders charge fees for things like loan origination and filling out paperwork.  Although the lending fees are negotiable, most buyers don’t know it.

Ask for justification for each lender fee.  If a lender fee cannot be waived or reduced, ask if it can be credited toward closing costs.

Realize there are some fees that are not negotiable, such as taxes, recording fees and prorated interest.

TIP #3:  Know your points

There are two types of points:

Origination Fees:  These have been discussed above and are negotiable.

Prepaid Interest:   These points are paid up-front to lower your interest rate.  A point equals 1% of the total mortgage amount.  It is your choice to “buy down” your interest rate in this manner and is tax deductible.  This mortgage cost may make sense for you if you plan on staying in your home for a long enough time to recoup the initial cost.

For more ideas on how you can reduce closing costs on Saint Paul real estate, feel free to call me at 651-702-4000 or email me.

Links:

Improve your credit score

Loan origination

You know that you can lend money to your child to help him or her buy real estate.  But you’d like to explore some other financial arrangements to determine which option is the most advantageous for you and your child.

Here are four additional ways to help your child buy a home in Saint Paul

Give the down payment as a gift.

Before deciding whether to make the money a gift or a loan, consider what  message you may be sending.  You don’t want your child to develop a sense of dependence, and equally important, you need to make sure your child is ready for the responsibilities of home ownership.  If you decide you do want to give part or all of the down payment as a gift, consult with your financial adviser to determine the amount you can give away without incurring tax liabilities.  Always check with the mortgage lender to determine if the gift will have a bearing on obtaining a loan, and what documentation may be necessary.

Co-sign the bank loan.

This could be all the help your child needs to get a mortgage. It might make sense if he or she is close to graduating from college and already has a job lined up or has solid but irregular income that would disqualify her or him from getting loan approval.

However, there are big risks associated with co-signing a loan. You’re responsible if your child fails to keep up payments, which means the bank will come after you for the money. If your child is late with a payment, it impacts your credit score. If you want to get another loan for a home or some other big expenditure, you may find the co-signed loan uses up your borrowing ability.

Before co-signing a loan, get legal and financial advice.  Also, if your child is married, be sure to have his or her spouse sign the loan and any other written documents that provide the terms of your agreement.

Set up a shared-equity arrangement.

In this arrangement, everything is open to negotiation.  Typically, a written contract spells out that the child (as the homeowner) is responsible for mortgage payments and gets the tax deduction that comes with it, and you (as the investor) are responsible for providing the down payment.

Some of the conditions you’ll want to agree on before finalizing the agreement are:  (1) who pays the property taxes, (2) whether or not your name will be on the loan and (3) when the investment will be paid back, through either selling or refinancing the real estate.

Because of the flexibility inherent in this type of arrangement, it’s crucial to involve your lawyer and have a document drawn up that spells out everything in detail.

Set up a lease-to-own agreement.

Basically, you buy an investment property and rent it to your child.  You can set the terms of the agreement, but here’s how lease-to-own arrangements typically work:

The renter is buying the right to purchase the house later at a given price.  There’s often a large upfront option fee of 1% to 3% of the home’s purchase price.  Or, the option fee can be added to the monthly rent. Usually, some or all of the option fee is credited as a down payment on the purchase of the house.

During the rental period, you still own the home and are legally responsible for it, but your child maintains the property as his or her own. Be sure to have a legally-reviewed contract signed by all parties involved.

If you’re interested in purchasing Saint Paul real estate for your adult child or as an investment, I can help.  Give me a call today at 651-702-4000 or email me for more information.

Links:

Shared-equity arrangement

Lease-to-own

Today’s economy has been rough on most everyone’s pocketbooks, and when it comes to prioritizing payments, mortgage payments usually come first, but can take a hit.  If you find yourself in a bind, owing more than your Saint Paul real estate is worth and you can’t afford your current mortgage, then you might want to consider talking to your real estate agent and lender about the possibility of a short sale.

To help you prepare for those conversations, here are the basics about short sales:

• What is a short sale? A short sale is an agreement that your real estate agent negotiates between you and your bank to sell your home for less than you still owe. The bank absorbs the loss so that the seller doesn’t have to repay the balance of the mortgage.
• Why would you do this? Your home is now worth less than you owe, which is called being underwater, and you have a financial hardship. There are a number of things that could put you in financial hardship and have you considering a short sale — such as unemployment, job transfer, illness, underemployment or divorce.
• How does it work? A real estate agent lists your home at its current market value. Then a buyer places an offer that is usually much less than the amount required to pay off the loan. The seller or agent (if the seller has given written permission for the agent to do so) takes the short sale purchase agreement to the bank holding the mortgage in hopes that they’ll accept it.
• What do you need? Basic guidelines usually include a hardship letter about why you need a short sale, bank statements for the last three months, two years of tax returns and permission for your real estate agent to negotiate short sale terms with your bank.
• How should you proceed? Most accountants agree that a short sale is better for your credit score than a foreclosure. Talk to your agent and have him or her refer you to an accountant who can evaluate your situation and help you take the steps necessary to secure a good financial future.

There’s a lot more to short sales than I’ve outlined here, but this gives you a starting point.

If you’re finding it difficult to meet your monthly mortgage payments and still owe more than your home is worth, then you might want to consider a short sale for your Saint Paul home. It can decrease your debt and release you from that monthly financial burden. Call me at 651-702-4000 or contact me for more information.

Links:

Short sale

Hardship letter