Real Estate Information

Children’s Festival, Stillwater

 Share a fun-filled time with your family as you enjoy a large variety of games, food, and activities just for children.  This traditional ECFE event gets bigger and better every year, so mark your calendars now.

No registration required

Tickets available at the door
Saturday, March 28  •  9:00 am-1:00 pm  •  Rutherford Elementary in Stillwater

Bachman's Spring Animal Farm, Maplewood

Great place to take the kids! Take 36 to the White Bear Ave. exit and go right towards Maplewood mall and it's on the right side of the road. 

Don't Miss Bachman's Spring Open House
Saturday and Sunday, April 4-5

All Floral, Gift & Garden Stores
Don’t miss our largest family event of the season. Enjoy our baby animal petting zoo (10 a.m. to 3 p.m.), kid’s potting bench, free refreshments, colorful demonstrations for spring on every hour and your chance to win door prizes including a $1,000 landscaping makeover and the first pitch at the Twins game on Sunday, May 3 - we're giving away 100 Twins tickets too!

 Presented by: Children and Parent Connection in Washington County (CAPC)

FREE evening of fun and entertainment for the whole family at Club Just Jump.

April 21^st from 6-8 at Club Just Jump in Woodbury

Saturday, June 6  •  10:00 am-Noon  •  Stillwater High School Parking Lot

Big Truck Extravaganza

Bring your family and enjoy a walk around the parking lot to see all kinds of big and little trucks.  Everything from a tractor to a firetruck will be ready for some “hands-on” fun.

No pre-registration required

$5/car at the event

The snow has finally melted and Spring real estate market is in full swing. There are probably two people you already know that could use our help and guidance.

First, the 2009 Economic Stimulus legislation included a tax credit of up to $8000 for first-time home buyers (or if you haven't owned a home for the last three years.) If saving for a down payment is an obstacle, buyers can claim the credit on their 2008 tax returns and use the funds this year before they purchase. Median sale prices have rolled back to values from 4-5 years ago coupled with mortgage rates near 5%, housing affordability hasnt been this good since the 1960s! There should be no reason to keep renting when you could own a home. Find out more details at www.FederalHousingTaxCredit.com.

Like many Americans, the second person you might know might be facing a personal

or financial hardship due to the economic downturn. Unfortunately, we have encountered individuals and families from all walks of life that are in jeopardy of losing their home to foreclosure. The tragedy is most people losing their home to foreclosure are unaware of the options available. Now more than ever, banks are open to loan modification programs or a short sale before foreclosure. Sharing this letter with someone you know could save them from a lifetime of trying to repair their broken credit. Find out more details at www.FinancialStability.gov.

Whether a buyers market, a sellers market, or a shifting market, buyers are getting qualified for mortgages and sellers are selling. Now more than ever, buyers and sellers need experienced professionals to help navigate the turbulent real estate market. As always, your referrals and recommendations to family, friends and co-workers are the heart of our real estate business.

Best wishes for a great Spring!

Make sure you choose a Realtor who will provide top-notch service and meet your unique needs.

1. How long have you been in residential real estate sales? Is it your full-time job? While experience is no guarantee of skill, real estate — like many other professions — is mostly learned on the job.

2. What designations do you hold? Designations such as GRI and CRS, which require that agents take additional, specialized real estate training, are held only by about one-quarter of real estate practitioners.

3. How many homes did you and your real estate brokerage sell last year? By asking this question, you’ll get a good idea of how much experience the practitioner has.

4. What is your average market time? How does that compare to the overall market? The Realtor you interview should have these facts on hand, and be able to present market statistics from the local MLS to provide a comparison.

5. How close to the initial asking prices of the homes you sold were the final sale prices? This is one indication of how skilled the Realtor is at pricing homes and marketing to suitable buyers. Of course, other factors also may be at play, including an exceptionally hot or cool real estate market.

6. What types of specific marketing systems and approaches will you use to sell my home? You don’t want someone who’s going to put a For Sale sign in the yard and hope for the best. Look for someone who has aggressive and innovative approaches, and knows how to market your property competitively on the Internet. Buyers today want information fast, so it’s important that your Realtor is responsive.

7. Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction? While it’s usually legal to represent both parties in a transaction, it’s important to understand where the practitioner’s obligations lie. Your Realtor should explain his or her agency relationship to you and describe the rights of each party.

8. Can you recommend service providers who can help me obtain a mortgage, make home repairs, and help with other things I need done? Because Realtor are immersed in the industry, they’re wonderful resources as you seek lenders, home improvement companies, and other home service providers. Practitioners should generally recommend more than one provider and let you know if they have any special relationship with or receive compensation from any of the providers.

9. What type of support and supervision does your brokerage office provide to you? Having resources such as in-house support staff, access to a real estate attorney, and assistance with technology can help an agent sell your home.

10. What’s your business philosophy? While there’s no right answer to this question, the response will help you assess what’s important to the agent and determine how closely the agent’s goals and business emphasis mesh with your own.

11. How will you keep me informed about the progress of my transaction? How frequently? Again, this is not a question with a correct answer, but how you judge the response will reflect your own desires. Do you want updates twice a week or do you prefer not to be bothered unless there’s a hot prospect? Do you prefer phone, e-mail, or a personal visit?

12. Could you please give me the names and phone numbers of your three most recent clients? Ask recent clients if they would work with this Realtor again. Find out whether they were pleased with the communication style, follow-up, and work ethic of the Realtor.

Just in case you know if anyone who doesn’t own a home and could use an extra $7500

One of the most exciting new provisions of the Housing and Economic Recovery Act of 2008 is the First-Time Homebuyer Tax Credit. The credit is designed to encourage first-time homebuyers to go ahead and make the leap to purchase their first homes. Combine this tax credit with the fact that home prices are at historical lows, and indeed it is an ideal time for many first-time homebuyers to purchase homes.

Here are some things to keep in mind:

• The credit is available for homes purchased between April 9, 2008 and July 1, 2009
• The credit amounts to 10% of the purchase price of the home not to exceed $7,500
• A first-time homebuyer is defined as someone who has not owned a home in the last three years
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit
• The tax credit works like an interest free loan and must be repaid over a 15 year period

How does a tax credit work?
A tax credit is a special provision that reduces income tax liability on a dollar for dollar basis. When filing a tax return, you must include income items, deduction items and the number of exemptions, among other things, to figure your total tax liability. If your total tax liability ends up being $7,500, and you qualify for the full $7,500 tax credit, this credit would be applied and would wipe out all of the tax due. If your employer had already deducted the $7,500 from your pay checks throughout the year, you would receive a tax refund of $7,500.

Does the credit have to be repaid?
Yes, the credit does have to be repaid, so it is really more like an interest free loan. Homebuyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a homebuyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

For more information about the first-time homebuyer tax credit or other changes resulting from the Housing and Economic Recovery Act of 2008, go to  

http://www.hud.gov/news/recoveryactfaq.cfm or just contact me at mailto://scottsmith@kw.com

"Defaulting on the Dream: States Respond to America's Foreclosure Crisis" is a must read for home owners struggling with their mortgage.

Produced by the Pew Charitable Trusts as the first detailed dissertation to chronicle the impact of the foreclosure crisis at the state level, the report is chock full of "where-to-go-for-help" advice.

"The stakes are incredibly high. Home ownership is the primary vehicle through which American families build financial security. It also is an essential building block of state and local economies," according to Pew managing directors Susan Urahn and Shelley Hearne.

Their timing is impeccable. One in 33 current U.S. homeowners may be headed toward foreclosure in the coming years because of subprime loans, and in some states the crisis is more acute. In Arizona, one in every 18 homeowners could lose their home. In Nevada, the ratio is one in 11, according to the report.

The report charts some assertive, even experimental state efforts to mitigate financial harm to homeowners, lenders, local communities and state budgets.

The report also explains the foreclosure process and lists home owners options when they default (become more than 30 days late on a payment) on their mortgage.

 

• Bring the account current by paying the past due balance on their loan, including late charges and other fees assessed by the lender.

   

• Renegotiate the terms of their loan with the lender.

   

• Pay off their loan by refinancing the loan with another lender.

   

• Sell the property to pay off the current loan, if the home is worth more than the mortgage. Or if the property is not worth the mortgage balance, engage a "short sale" where the lender forgives a portion of the debt provided a seller is available to buy the home.

   

• Voluntarily convey the property back to the lender through a deed–in-lieu of foreclosure.

The report also lists a host of relief efforts, some on the state level, some not, some well known, some not so well known, including:

 

• Homeownership Preservation Foundation creates partnerships to help families overcome obstacles that could cause foreclosure.
• National Consumer Law Center uses consumer law to promote marketplace justice for vulnerable home owners and families.
• Minnesota's Foreclosure Prevention Assistance Program provides eligible state home owners with counseling and financial assistance.

Check with your state housing, consumer, social or community agencies to determine what home owner and mortgage programs and assistance is available to help see you through hard times.

Published: October 30, 2008

In a competitive market, it’s a price war and a beauty pageant. Banks and foreclosures have the luxury of competing on price. Traditional resale homes must compete on condition and amenities. The Minneapolis Area Association of Realtors has conducted a comprehensive study using our local MLS statistics. They separated the foreclosure type property from traditional resale homes. The findings tell the tale of two markets. Where foreclosure properties average sales prices are considerably down, traditional resale properties in most areas are down single digits. As you are blasted with information from the internet, television and newspaper, remember that all real estate is local, from metro area to city/community down to your neighborhood.

September/October Market Observations:

1.                   As our local market continues to heal, one of the first indicators is a slow down in new listings hitting the market. Historically, the gap between supply and demand narrows in the last quarter. Less competition and continued buyer activity translates into a good window for serious sellers.

2.                   September experienced a huge spike in sales compared to last year. This is most likely due to down payment assistance programs expiring at the end of the month. Regardless, we anticipate a ripple affect from increased first-time buyer activity.

3.                   The bottom quartile price ranges continue to sell as banks are slashing prices on foreclosure property.  In the peak of the market, the top quartile, new construction activity was driving the numbers upward. Still, nearly 30,000 homes have been sold in 2008. Just off last year’s numbers.

4.                   If you’ve filled up your gas tank recently you can relate to prices being a moving target. For many inexperienced agents, understanding the current market conditions are puzzling and difficult to extract from statistics. Where some properties are receiving multiple offers and others sit on the market for months with our experience and volume of being in the trenches everyday allows us to keep our finger on the pulse of a dynamic market. 

5.                   Government intervention and stimulus measures will hopefully force lenders to loosen up their purse strings and lend to qualified borrowers. Large banks are still gun shy with the Wall Street roller coaster. Still, we are anticipating interest rates for your run of the mill, 30 year mortgages will remain at or near 6 percent into early 2009.

6.                   The Supply Demand Ratio and Housing Affordability Index clearly point to a buyers market. In the last decade, there hasn’t been a more affordable selection of homes combined with lower interest rates and incentives for first-time buyers.