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Why You Should Attend a Home Buying Seminar January 18, 2010

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Mortgage lenders, banks, libraries and real estate firms often host home buying seminars to educate the community about the home buying process. Whether you’re a first time homebuyer or are thinking about moving to a new neighborhood, the home buying seminar in your area is a great place to have your questions about home buying answered by local professionals.

Home buying seminars are commonly conducted in places like the local library, the community center, or in a banquet room of a hotel or restaurant. It may be held as a lecture with a Q&A session, or as a PowerPoint presentation or as a slide show. Many of the home buying seminars can be attended free of charge and you will surely benefit from tremendous amount of information that will be given.

A key benefit of attending such seminars is getting meet people like the local realtors. This is a great opportunity to know the various realtors and agents in person, rather that have to having to find them by using the Yellow Pages or search engines. It is also a way to establish new relationships and get to learn more about their services or the firm that they are working for.

Mortgage lenders that conduct home buying seminars will educate you on the financial side of home buying, and may introduce several loan packages and programs available, or even prequalify you on the spot. Meeting mortgage lenders at these events helps you establish a relationship and may make it easier for your to get started on the preliminary loan document process.

Some lenders and realtors may also offer discounts or incentives for attending their own branded seminar. While local libraries and educators also host these informational events, they may not be able to direct you to specific professionals in the area. When you attend a seminar hosted by a lender or realtor, you’ll have an opportunity to get referrals and other insider information about services you need. Mortgage lenders who host the event may waive your closing costs if you attend the event, and realtors may offer gift cards or other free gifts as part of their invitation.

“1,200 Great Sales Tips for Real Estate Pros” book authors, Christina Spira and Mariwyn Evans, stated that realtors who go the extra mile by creating videos to introduce their services and offer free gift bags go these things to establish a relationship with their prospects. These seminars can be used by you to get a closer look on how the company and the agents treat their valued and prospective clients.

The information you can garner from the professional realtors and the other benefits that you can get by attending these seminars will greatly aid you to getting a better home purchase. Consider signing up for one or two home buying seminars in your prospective area to get an insider’s view of the current market and learn more about your home buying needs from the experience realtors.

Author and Realtor Alexandria P. Anderson helps clients to find and purchase Richfield Minnesota real estate as well as Richfield MN homes and houses in the Twin Cities.

Tips in Choosing Between Existing and New Homes December 28, 2009

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Buying a brand new home as a first time home buyer in Minnesota is an attractive proposition for most; you get to move into a completely new living space with brand new amenities and don’t have to worry about maintenance and renovations for at least the first year.

Nevertheless, brand new properties are more expensive than existing ones and you’re not always sure what awaits you in the new neighborhood you will be living in.

Understanding the benefits and drawbacks of each scenario can help you make the best decision about your new home purchase; consider the following important points as you get started on the home buying process:

1. To what extent would you be wanting to pay for your desired property? Because of its newness, all brand new homes in Minnesota are priced at a premium; this means that you will be the one to get a taste of everything it offers, from the moment you entered your new property.

2. How important is resale value to you? Existing Minnesota homes for sale can have slower appreciation than newly-constructed ones, as explicated by Ilyce Glink (writer of the book ‘100 Questions Every First-Time Home Buyer Should Ask’). If you are planning on selling your home in the very near future, a brand new home may have a higher market value shortly after you move in, making it easier to sell the home for a profit.

3. Can you easily adapt to a new neighborhood? New home construction developments can grow at a rapid pace, and if you’re one of the first few homeowners in the area, you won’t have a strong idea of what the neighborhood is really like until more people move in.If you have family consisting of smaller children or elderly living with you, it can be great to factor in safety and security by finding out your options as far as making your property safe.

4. Do you want to invest time and money to renovate a home? Existing homes can appreciate tremendously in value if you have the time and resources to invest in renovations and maintenance. Finding good investments that will work in the long run but can be profitable even in a shorter time is possible with a ‘fixer upper’.

5. Which do you prefer, a primary residence or an investment? Most beginning homebuyers want investment properties that they can soon turn into a profitable business. However, older and mature homebuyers prefer primary residence mainly for purposes of settling down or establishing themselves in the neighborhood. Consider what your short-term and long-term goals are so you can make the best decision for your first home purchase.

Based from your goals (both longterm and short term) and the amount of money you are willing to shed off your pocket – thats when you decide to have either a new or existing home. Consider all of the above questions when you’re deciding between the two options so you can make the best investment with your resources.

What You Should Know About Working with a Seller Broker November 26, 2009

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Many first time home buyers end up working with a subagent, otherwise known as a seller’s agent and it’s important to understand that these agents are working on behalf of the seller, not the home buyer. Seller’s agents are hired to represent the seller and bring the buyer to the deal, but they do work on a commission and have certain rights and responsibilities towards the buyer.

Real estate regulations vary across different states but there are federal laws that define common responsibilities, and limitations, of a seller’s agent. Ilyce Glink, Author of ‘100 Questions Every Home Buyer Should Ask’, advises home buyers to know the exact terms of service of an agent by reading the agency disclosure form. Clarify what each provisions mean with the agent; but if you really cannot understand the wordings, it is best not to sign the form. Below are the key obligations of a seller’s agent:

A seller’s agent can give you information regarding similar homes in the area. This information is called comparables or ‘comps’ and is a listing of homes that have similar price, size and area, and age. Comps can include homes that were recently sold or are currently in the market. This information allows a homebuyer to have a basis of comparison to ascertain the value of a home.

Seller’s agents cannot dictate, or otherwise pressure, home buyers into buying a home. The seller’s agent’s job is to facilitate the selling of a home but it doesn’t mean that they can force homebuyers into buying a home. You might be in a situation wherein you are deciding between two homes that are handled by one subagent. In this case, the seller’s agent cannot compel you to choose one home over the other.

A seller’s agent cannot reveal the flaws of the home, except for imperceptible material imperfections. They are not allowed to disclose information that can influence you not to buy a property. Homebuyers must conduct their own inspection to assess the condition of a home.

It is illegal for seller’s agents to provide information regarding the best offer amount to homebuyers. Remember that a seller’s agent should be concerned with the interests of the seller first and foremost. Giving a tip to the buyer infringes on a seller’s agent’s relationship with the seller.

With all the restrictions on your relationship, a seller’s agent can still ask for referrals from you. Seller’s agents are typically self-employed or small business owners and there is no law that restricts someone from referring others to a business.

The job of a seller’s agent is to make the buying and selling process as smooth as possible. As a buyer, you have to remember that seller’s agents are working for the seller. Therefore, it is still important for you to do your own research and work with a professional buyer’s agent.

Author: Alexandria P. Anderson specializes helping people to find and purchase Minneapolis Condos, as well as Minneapolis Lofts for her Minnesota real estate clients.

Homebuying Basics – Negotiating The Best Price For Your Home October 17, 2009

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After you’ve spent enough time doing all of the research about your prospective home and are comfortable with working with the seller, it’s time to make the offer. However, the home buying offer isn’t the end of the sales process; you may be involved with negotiating a price after making the offer if the seller refuses to accept it, so you’ll need a plan to get the price you want – or close to it – well before you extend your initial offer.

Studying the contract in detail and having a back-up plan are just two ways to prepare for the negotiation process. Barron’s ‘Consumer’s Guide to Home Buying’ explains that it is best to be prepared for price negotiations even before submitting an offer by creating a checklist of items to consider when negotiating. Here are some items you need to take into account when negotiating for the price of your new home:

1. Knowing who the decision-makers are in the transaction. Understanding who really calls the shots is a critical element in any negotiation. Is the seller working alone or do they involve their lawyers, accountants, agents or any other third parties in their transactions? You can adapt your negotiating approach and gauge the trustworthiness of the seller if you know who the decision makers behind the contract are.

2. Do you have a contingency plan? If the seller refuses all of your offers, do you have other options? It can be frustrating to not be able to get what you want from the negotiation, but you also need to know when to back off and pursue another direction. Outline exactly how high you are willing to bid for the home and don’t go beyond your decision just to win.

3. Read the whole contract in detail. Know what you’re getting into before you sign your name on the contract. Review the contract in detail and take note of any provisions that are not clear to you. It is best to clarify all terms in the contract with the seller than to assume the meaning of the terms yourself.

4. Develop a relationship with your realtor. Realtors have the experience to give you professional advice about your prospective home. Spend the time to develop a positive working relationship with them. Voice out your concerns to your realtor well ahead of the negotiation process to give your realtor time to help you in making an informed decision.

5. Be prepared to handle negotiation setbacks. Poor communication happens in any negotiation often and you have to learn how to deal with it. There are other things as well that make negotiating difficult. It is important to remain impervious to negotiation setbacks but you have to know when to stop negotiating when you think the transaction is not going anywhere.

Author: Alexandria P. Anderson specializes helping people to find and purchase Bloomington homes for sale in Minnesota, as well as Bloomington property for her MN real estate clients.

Home Inspection Basics As A First Time Homebuyer September 17, 2009

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You want to avoid any major surprises when you’re considering a new home purchase so contracting with a professional home inspector can alleviate much of the stress and concerns about your prospective home early in the home buying process.

Then again, official home inspections are only required after an initial contract is signed. It would be better for you to gather your own information about the house you are eyeing. You can go straight to the seller and ask him or her everything about the house. You can also ask for permission to conduct your own mini-inspection.

Sellers typically allow prospective buyers to inspect their home before anyone enters into any agreement. Barron’s ‘Smart Consumer’s Guide to Home Buying’ advises homebuyers to use a checklist in taking note of any problems and issues in the earliest time possible. The book further explains, “If you are thinking about buying a house that will need renovation or upgrading, the more value will be derived from your mini-inspection.” The mini-inspection will ultimately give you a bargaining leverage when negotiating for the price of the home you are buying.

Create a checklist that you will use in your home inspection. This will help you in taking notes of the general condition and appearance of the house. Below are important issues to include in your notes:

The age of the house – You should know exactly when the house was built. Find out if there are any renovations or upgrades done and when these took place. Ask if blueprints, architect or engineer plans are available.

Check the foundation for potential problems – are there any large cracks or noticeable water problems around the home or in the basement? Ask about flooding issues and weather-related problems that have taken their toll on the home in different seasons.

Check the interior for defects and potential problems – you’ll want to make sure that all doors open and close easily and that all the walls are flat, even and free of cracks. Make a note of any visible cracks or deterioration and take pictures of anything that stands out. You’ll also want to check for mold problems, odors and make sure all water entry areas are clear and functioning properly.

Inspect the exterior of the house – Check if all windows and doors move smoothly and if these are properly insulated. Inspect the sidings of the house. Look for signs of deterioration.

Review heating and air conditioning appliances – ask about the average heating and cooling costs each month, and find out how long the systems have been in place. In some cases, you may need to invest in a new water heater or air conditioning system.

In addition to the written inspection report, you may consider taking pictures or short video clips using a digital camera/camcorder so you can review everything again in more detail at a later date. This extra footage or coverage may also give you an upper hand during the negotiation process with the seller.

Author and Realtor Alexandria P. Anderson helps clients to find and purchase real estate in Eden Prairie as well as Eden Prairie homes for sale in and around the Twin Cities of Minneapolis and St. Paul.

Important First Steps When Buying a Home August 6, 2009

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Buying a home is a long-term investment. You’ll probably live in a home for some time so you have to make sure that you really want the home you will purchase. It is best to be clear about what you want in a home before you start your search. While most real estate agents can guide you in your search, the decision to purchase a home, and its implications, wholly rest unto you.

The home buying process can be confusing to first time homebuyers simply because of the number of decisions a buyer has to make. A buyer first has to decide about the location of a home. The buyer is then confronted with other choices such as what type of home to buy, the condition of the home and the home’s amenities. It would be better to create a criteria of a perfect home to judge all homes you encounter on your search easily. Create your criteria with these questions and considerations in mind:

1. What amenities do you want your home to have? Do you want to have a swimming pool, a garden, or a fireplace? Be clear with what you want so you can skip houses that don’t meet your criteria.

2. Be specific about your location. Author Ilyce Glink of ‘100 Questions Every First-Time Home Buyer Should Ask’ explains that location is one of the most important factors when considering different homes. You’ll need to think about where you will be located in relation to schools, places of worship, shopping venues and even your friends and family. Your final location will determine how much you may need to drive each day – and if it’s worth the extra effort.

3. The size of your home. Specify how much space your family needs and if you are expecting any additions to your family in the near future. Your needs will determine the size of the home that you will purchase. If your family is growing, you might want to purchase a bigger home to accommodate your family three to five years in the future.

4. Are you willing to spend on home renovations? Some homes might have the perfect size and the perfect location but are not in any condition to house your family. How much are you willing to spend in renovating the home? Being specific about this area will help you save time as you exclude some houses from your search.

5. Will safety and security be an issue for you? If you have small children or are living alone, safety and security may be a top priority. Ask yourself what you will need in order to feel safe in the new neighborhood so you can eliminate homes that don’t meet the criteria.

Being specific about your home buying criteria will help you save time in searching for your home. It will also make your stay in your new home more enjoyable because your new home would match your needs and wants.

About the Author: Alexandria P. Anderson is a Plymouth Real Estate agent that helps people to find and purchase Plymouth Homes for Sale and properties in the Twin Cities of Minnesota.

Should You Rent Or Buy Your First Home? July 6, 2009

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If you’ve considered buying a home after renting an apartment or condo for several years, you will probably need to overcome several psychological barriers to become completely comfortable with the process.

Many potential homeowners simply don’t take the first step towards home ownership because of the responsibilities associated with buying and owning a home. When you buy a home, you’ll be responsible for more than your mortgage payment each month; home ownership involves paying maintenance costs, applying for homeowner’s insurance, and paying taxes and fees. If you’re interested in buying a condo, the process may be even more complicated. However,you can overcome this initial barrier that may be leaving you feeling overwhelmed – by understanding some basic principles of home buying.

It’s a good idea to make up your own checklist of all the different payments involved with your prospective home. You can typically get a lot of this information from your realtor; ask them for average fees, taxes and maintenance costs for the home and create a spreadsheet of all the different elements involved. If you do this in a digital format, you can create side-by-side comparisons of each home you’re interested in so you have an accurate view of all the costs involved and the total monthly expenses you’ll be responsible for.

Author Ilyce Glink of ‘100 Questions Every First-Time Home Buyer Should Ask’ explains that buying a home also means you’re buying into your local community, because you’re responsible for local taxes, trash pickup and other services that may not accompany renting in the same area.

Next, you’ll need to do some extensive research about tax benefits. Home ownership usually does give you several tax advantages over renting, but this will vary significantly depending on your current income and the total amount of real estate property tax you will be paying each year.

The idea here is to figure in all your deductions and current income level into the calculation of your tax benefits. You can ask an accountant or financial advisor for assistance in determining the exact tax benefit you’ll get.

Owning a home is seen as a long-term action. Going through the whole home buying process is just not worth the time, effort and money if you only intend to settle in a particular location for a few months or a couple of years. If you’re not yet decided on where to settle in for the long-term, it might be better for you to rent a home on a monthly or yearly basis.

If you’re not feeling settled in a particular city or neighborhood, buying a home may be causing a lot of anxiety. Make some solid decisions about where you want to settle and where you’re willing to relocate to in the long-term so you can make the best decision about your new home.

About the Author: Alexandria P. Anderson is an Eden Prairie real estate agent that helps people to find and purchase Eden Prairie homes and properties in the Twin Cities of Minnesota.

Ways To Search For Your New Home Online And Offline May 28, 2009

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Finding the best when it comes to owning a house doesn’t have to be that difficult a process as you can now search through online listings. Home search is made simpler with the advent of online resources because in just a few clicks of the mouse – you may choose the home with all your desired features and amenities.

Online listings on real estate also act as an important guide in your search for your perfect abode. In fact, you can easily assess your personal taste or predilection vis-a-vis websites’ home designs and styles and see if they suit your lifestyle and personality. As suggested by the authors of ‘Questions Every First-Time Home Buyer Should Ask’, beginning homebuyers may refer to major online resources like Realtor.com when faced with the challenges of looking for a new house. These online listings provide a compilation of neighborhoods and homes, complete with pictures, videos, plus other related audio-visuals that can facilitate your search.

Almost all the data you need about these homes are present as you do a basic search in the Internet which can be printed for reference purposes. Coldwell Banker, Re/MAX, and Century 21 are just some of the best websites in home buying typically managed by leading national chains; you can bookmark said sites as valuable sources. Likewise, a real estate professional can assist you in your quest so start looking for individual offices with databases on listings or contact information on realtors that are regularly updated so you can network with one.

Websites such as Realestate.com also offer updated MLS listings with street views of homes in certain cities. You can search listings by city and state, zip code or MLS number for a comprehensive list of search results. Visit the ‘Local Community Information’ section to find more information about home sales prices, crime, commuting and the weather in your preferred location.

Aside from the ease in search that these websites offer, you can be updated with the latest online listings and can even compare home values. All the information you can get in your search are great tools as you prepare approaching a real estate agent. Real estate listings are likewise found in your local library. These libraries more often than not, have online equivalent of its resources that you can take advantage of. But it it does not have one, you can allot some time in searching at their in-house database. If there is one limitation that these local libraries have, it’s that their listings may not be regularly updated.

Despite the fact that the Internet or online resources have become a big help in home searching, you still need the assistance of a real estate agent when actual visit to the property commences. Drilling down local listings and defining your home preference according to your style and personality are major benefits in using online searches. And finally, you can benefit from all these if you use regularly updated resources in your searches.

About the Author: Alexandria P. Anderson is an Minnetonka Real Estate agent that helps people to find and purchase Minnetonka Homes and properties in the Twin Cities of Minnesota.

Key Things To Consider With New And Existing Homes May 6, 2009

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The purchase of a new home is always considered a rewarding experience by many first time homebuyers not only because it allows couples or families to enjoy an entirely new space, but due to the convenience it provides particularly with the brand new amenities minus the hassles of maintenance during the first year.

Nevertheless, brand new properties are more expensive than existing ones and you’re not always sure what awaits you in the new neighborhood you will be living in.

Understanding the benefits and drawbacks of each scenario can help you make the best decision about your new home purchase; consider the following important points as you get started on the home buying process:

1. Are you willing to spend extra for a new home’s purchase? Because of its newness, all brand new homes are priced at a premium; this means that you will be the one to get a taste of everything it offers, from the moment you entered your new property.

2. Do you care for resale value? Existing homes can have slower appreciation than newly-constructed ones, as explicated by Ilyce Glink (writer of the book ‘100 Questions Every First-Time Home Buyer Should Ask’). When you have plans of selling your home in the near future, it may be a good idea to have a brand new home because it’s market value is higher and you can profit at a larger scale from it.

3. Can you easily adapt to a new neighborhood? Many new home constructions move at a very fast rate and as one of the first homeowners in the area — knowing what the neighborhood is like wont happen unless you get to meet more people in your new environment. If you have family consisting of smaller children or elderly living with you, it can be great to factor in safety and security by finding out your options as far as making your property safe.

4. Are you willing to invest your resources for home renovation ? Existing homes can appreciate tremendously in value if you have the time and resources to invest in renovations and maintenance. You may opt for a ‘fixer upper’ if your plan is to have a long-term investment to give you a high profit at a short time.

5. Are you looking for an investment or a primary residence? Many younger first time home buyers are looking for investment properties that they can fix up and sell quickly to turn a profit. Mature home buyers are more likely to be in the market for a primary residence since they want to settle down and establish themselves in the neighborhood. Consider what your short-term and long-term goals are so you can make the best decision for your first home purchase.

Deciding whether to buy a new or existing home will largely depend on your short and long-term goals, and the amount of money you are willing or able to spend right away. Consider all of the above questions when you’re deciding between the two options so you can make the best investment with your resources.

Alexandria P. Anderson is a MN Investment Property specialist. If you are a Minnesota First Time Homebuyer she can help you to find real estate that’s perfect for your needs. Get a free copy of “The Investors’ Rental Guide” at GreatInvestmentProperty dot com.

Get Your Loan Pre-approved And Pre-qualified With These Simple Steps April 15, 2009

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Making the right decisions particularly on the loan amount matters a lot when it comes to buying your desired property. But first, you must consider the fact that purchasing a new home requires prequalification and preapproval, and you actually need to have your credit report checked out. A detailed inspection of your financial circumstance or credit report may be done by a prospective lender while you go through the processes in prequalification and preapproval, but at the same time – you may want to check your credit report for errors from a credit bureau, for free.

There are cases when errors or mistakes happen and if this is the situation, better have your records cleared up, likewise, compile all your communications with credit bureaus and lenders as references. If you have finished all these tasks, its time to factor in this important ideas and tips in the loan prequalification and preapproval for you to buy your new property:

1. Check the different mortgage programs through the Internet. You can find several loan packages and compilation of the latest interest rates through websites like LendingTree.com and Bankrate.com. Examine these options in the Internet and if you want to have a preliminary review – you can give your personal details. As soon as you have forwarded all the necessary information, a representative will contact and guide you for the remaining steps to follow.

2. Visit and seek the help of your local bank. The best authority from your area bank to ask help from are mortgage officers in case you want to get a prequalification letter or preapproval status. This may take some time to accomplish compared to the online process, according to Ilyce Glink, author of ‘100 Questions Every First Time Home Buyer Should Ask’. But if you are the type of person who find it easier to get things started going to the bank and talk to a representative in person, this may be what you need. The same kind of service is provided.

3. Dial the telephone. Another option you may try is transact your loan prequalification over the telephone, instead of online or bank methods. Some lenders offer this kind of service and all you have to do is ask the local bank for the number so you can give or submit your personal details through the phone.

4. Engage the service of a national lender. These lending companies may provide you a wider array of options than that of a bank or online processes; examples of national lending institutions are Countryside Home Loans and Bank of America. Know more about the current rates in their website and get your home loan pre-qualified after sending your personal information.

5. Visit an aggregator website. This type of online resource provides documents on rates and services offered by different lenders and a good option where you can submit your personal information instead of a bank or any other financial institutions. Several options are available for you to choose from after you have submitted your info.

Getting prequalified and preapproved for a home loan is the first important step in home buying. Use any of the above resources to get the process started and get the best rates for your future mortgage.

Alexandria P. Anderson is a licensed Minnesota Realtor that uses the MN MLS to help her clients to find and purchase Homes in Minnesota.