Minneapolis Saint Paul

Gifts and Grants can be considered towards borrowers funds on certain 3% down conventional loans

Yes, you read that right. I just got an email today from a leading mortgage insurance company that is willing to underwrite this loan. You will need at 740 or better score. But, what an opportunity. In many ways, this is like FHA, but with a little higher credit threshold. The KEY difference, besides credit score, is the lack of an upfront MI (mortgage insurance) premium and as well as a smaller required monthly premium. This product could be a game changer for the MI company and conventional loans.

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Purchase 80/10/10 and 80/5/15 STILL exists

As of this post, the 80/10/10 and 80/5/15 can still be done. While underwriting has allowed it, it has been very difficult to find a second mortgage product that would write a 5 or 10% second mortgage. Well, after many phone calls, we have sourced two lenders who at this time are willing to offer the second mortgage. One is a bank and the other is a credit union. As with EVERY program, the rules can and do change at any given moment. The key to both product is extremely high credit scores and a file that utilizes conservative ratios. If you don’t have at least a 700 score, this might not be something you can utilize at this time. For the 80/10/10, you will need a 740 or better score.

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What Is Your Home Worth Today?

I found a cool resource at http://www.FHFA.gov. If you go there, in the middle of the page you will find something called the Home Price Calculator. You input your home purchase information in terms of State, quarter in which you purchased and the quarter in which you’d like to get the valuation. Next, you hit calculate, and it will show you a chart. While it isn’t specific to YOUR exact home, it does give trends for your area. If you want specific information-specific to your home-within the Twin Cities metro-give me a call and we can discuss your situation. I can then give you guidance on what the value might be.

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Did you know-Current & Future Housing Data

Watch this video-then call me to help you buy or sell a new home or investment property.

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8 Tips For Finding Your New Home

A solid game plan can help you narrow your homebuying search to find the best home for you.

House hunting is just like any other shopping expedition. If you identify exactly what you want and do some research, you’ll zoom in on the home you want at the best price. These eight tips will guide you through a smart homebuying process.

1. Know thyself
Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2. Research before you look
List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order
Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline
Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

5. Think long term
Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR®
Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic
It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit
It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.

G.M. Filisko is an attorney and award-winning writer who has found happiness in a brownstone in a historic Chicago neighborhood. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

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4 Tips to Determine How Much Mortgage You Can Afford

By knowing how much mortgage you can handle, you can ensure that home ownership will fit in your budget.

Here are six surefire ways you can get your finances in order before you buy a home.

Homeownership should make you feel safe and secure, and that includes financially. Be sure you can afford your home by calculating how much of a mortgage you can safely fit into your budget.

Instead of just taking out the biggest mortgage a lender qualifies you to borrow, consider how much you want to pay each month for housing based on your financial and personal goals.

Think ahead to major life events and consider how those might influence your budget. Do you want to return to school for an advanced degree? Will a new child add day care to your monthly expenses? Does a relative plan to eventually live with you and contribute to the mortgage?

Still not sure how much you can afford? You can use the same formulas that most lenders use, or try another of these traditional methods for estimating the amount of mortgage you can afford.

1. The general rule of mortgage affordability
As a rule of thumb, you can typically afford a home priced two to three times your gross income. If you earn $100,000, you can typically afford a home between $200,000 and $300,000.

To understand how that rule applies to your particular financial situation, prepare a family budget and list all the costs of homeownership, like property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care costs.

2. Factor in your downpayment
How much money do you have for a downpayment? The higher your downpayment, the lower your monthly payments will be. If you put down at least 20% of the home’s cost, you may not have to get private mortgage insurance, which costs hundreds each month. That leaves more money for your mortgage payment.
The lower your downpayment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.

3. Consider your overall debt
Lenders generally follow the 28/41 rule. Your monthly mortgage payments covering your home loan principal, interest, taxes, and insurance shouldn’t total more than 28% of your gross annual income. Your overall monthly payments for your mortgage plus all your other bills, like car loans, utilities, and credit cards, shouldn’t exceed 41% of your gross annual income.

Here’s how that works. If your gross annual income is $100,000, multiply by 28% and then divide by 12 months to arrive at a monthly mortgage payment of $2,333 or less. Next, check the total of all your monthly bills including your potential mortgage and make sure they don’t top 41%, or $3,416 in our example.

4. Use your rent as a mortgage guide
The tax benefits of homeownership generally allow you to afford a mortgage payment—including taxes and insurance—of about one-third more than your current rent payment without changing your lifestyle. So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment.

Here’s an example. If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.

However, if you’re struggling to keep up with your rent, consider what amount would be comfortable and use that for the calcuation instead.

Also consider whether or not you’ll itemize your deductions. If you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.

G.M. Filisko is an attorney and award-winning writer who’s owned her own home for more than 20 years. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

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Two Special Twin Cities Home Buying Programs

One program is called FPP-Foreclosure Partnership Program, and the other is NSP2 Homebuyer Assistance Program.  Both programs offer incentive money for a purchase.  I can use these financing programs with one of our mortgage investors.  Consider checking them out to see if they’d work for you.

HennipenCounty-Non-forclosedHomes-overview

HennipenCounty-Nsp2-overview

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Relocation To Minneapolis Or Saint Paul

Check out this very cool video by Positively Minnesota. They highlight just some of the reasons to relocate here.

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Rebuilding Credit To Get A Mortgage

Often, especially in this market due to the recession, we find potential home buyers who have had a life event or “bump in the road” that affects their ability to obtain a new loan. If you want to buy a home, you will have to have a certain number of reporting trade lines and for certain length of time. MOST mortgage programs require 3-5 trade lines and a minimum of two years of reporting. The other criteria is the actual credit score-which generally has to be 620, 640 or even 660 as it is all lender dependent. A manual underwriting where they use alternative credit such as rent payments, cell phone bill, utility bills, and the cable bill might be able to be used-but only with a few certain programs and lenders. So, the best bet is to re-establish credit as quickly as possible. HOW ABOUT NOW!! Don’t wait-it will only extend the time until you are going to be eligible. I have put together a list of resources that might be helpful. This list is only a starting place for your research. If you find another good resource please post it in the comments below so that the list can be expanded upon.

TOP IDEAS FOR CREDIT RE.doc

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Buying Rental Property In The Twin Cities

Have you ever wanted to own rental property, but were unsure where to start? I teach a class on the topic. I’ve decided to make the outline into a PPT. I cover the information in my class in much more depth and breadth, but this will give you a lot of useful information. If you are interested in discussing purchasing a rental property as an investment, just give me a call and we can set up a time to meet and review how I can help you become a “real estate mogul”.

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Mortgage Insurance May Still Be Deductible For Some Buyers

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Is There An Opportunity Right In Front Of YOU

I just watched an amazing video which I’ve posted below called the Money Tree. There are so many different interpretations. One that struck me was that people are oblivious to opportunity that is right in front of them. How many of us are looking for something that we already have or is within our reach? How many people are NOT buying real estate today when they could be looking at this as an incredible wealth building opportunity for what it is over the long term-assuming properties rise again in value? I was showing homes this past weekend. It was incredible to see townhomes in great communities selling for 40-60% less than they had sold for just as little as 5 years before. Luckily for my client, we are going to make an offer and ACT. Watch this video and don’t let the opportunities in your life pass you by. Don’t let life pass you by. Happy New Year and may 2011 be your best yet!

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Learn About Waconia Minnesota

Here is a Link to the City Website :

http://www.waconia.org/

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Learn About Medina Minnesota

Here is a Link to the City website :

http://www.ci.medina.mn.us/

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Learn About Spring Park Minnesota

Here is their city site:

http://www.springpark.govoffice.com

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Learn About Mound Minnesota

Here is a Link to the City website :

http://www.cityofmound.com/

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Learn About St Michael Minnesota

Here is a Link to the City website :

http://www.ci.st-michael.mn.us/

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Learn About New Brighton Minnesota

Learn About New Brighton Minnesota

Here is a Link to the City website :

http://www.ci.new-brighton.mn.us/index.asp?Type=NONE&SEC={9AB8D9BF-8CC1-4BA5-B53B-9B882C4BB2D3}

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Learn about Buffalo Minnesota

Here is a Link to the City Website :

http://www.ci.buffalo.mn.us/

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December Is The Time To Reflect

Are each of us doing all we can to make the world a better place? Many of us have our favorite charity and organizations we support. RE/MAX is a very large sponsor of Children’s Miracle Network. Many people don’t realize how much has been given. Each time I sell a home, I automatically donate a portion of my commission to this organization. Other RE/MAX agents like myself contribute from their commission checks as well. Together, with RE/MAX we have collectively given over 100M. I would encourage everyone to consider finding an organization they believe in and make giving a part of their life. Just imagine what the world could look like?

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Learn About Apple Valley Minnesota

This site provides information about demographics, the parks, a link to the school district websites, a link to the Minnesota Zoo website, and other links that would be useful to a new resident.  The website is www.cityofapplevalley.org

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Learn About Prior Lake

Prior Lake has grown by leaps and bounds.  It has rural properties and major developments.  It has beautiful land and home to major parks like Murphy Hanrehan Park.

Here is a Link to the City of Prior Lake website :

http://www.cityofpriorlake.com/

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Learn About Shakopee Minnesota

While you are there, don’t forget to stop out at the casino for the buffet and a chance to win some money
Here is a Link to the City of Shakopee website  : http://www.ci.shakopee.mn.us/

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Learn About Excelsior Minnesota

Here is a Link to the city of Excelsior website :

http://www.ci.excelsior.mn.us/

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Learn About Oakdale Minnesota

Here is a link to the City of Oakdale website :

http://www.ci.oakdale.mn.us/

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Learn About Deephaven Minnesota

Here is a Link to the City of Deepaven Website :

http://www.cityofdeephaven.org/index.htm

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Learn More About So St Paul Minnesota

I lived there when I was a young lad.  Nice town, solid people.  My grandparents lived there for 85 years until he passed.  Here is a Link to the City of South St. Paul website : http://www.southstpaul.org/

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Learn About Chanhassen Minnesota

Home to the Chanhassen Dinner Theater and much more!
Here is a Link to the city of Chanhassen website :

http://www.ci.chanhassen.mn.us/

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Learn More About West St Paul MN

Right next to So St Paul and St Paul is West St Paul.  Some of the best Mexican food can be found there.  One of our favorite restaurants is a place called Boca Chica.  Mighty Tasty and highly recommended.
Here is a link to the City of West St. Paul website :

http://www.ci.west-saint-paul.mn.us/

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Learn About Minnetonka MN

Here is a link to the city website:

http://www.eminnetonka.com/about_minnetonka.cfm

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Learn About Eagan MN

Here is a Link to the City of Eagan Website as well as some shortcuts they have made available.

http://www.ci.eagan.mn.us/live/default.asp

Friendly URLs/Shortcuts:

www.cityofeagan.com/AdultSports
www.cityofeagan.com/BuildingInspections
www.cityofeagan.com /CedarGroveRedevelopment
www.cityofeagan.com/CedarGroveRFP
www.cityofeagan.com /CityCouncil
www.cityofeagan.com /Commissions
www.cityofeagan.com /EaganArtHouse
www.cityofeagan.com /econnect
www.cityofeagan.com/EmergencyPrep
www.cityofeagan.com /Fire
www.cityofeagan.com /gamestatus
www.cityofeagan.com /History
www.cityofeagan.com/HolzFarm
www.cityofeagan.com /Jobs
www.cityofeagan.com /LakesandWetlands
www.cityofeagan.com /Maps
www.cityofeagan.com/Marketfest
www.cityofeagan.com/meetingspace
www.cityofeagan.com /NewResidentGuide
www.cityofeagan.com /newsletters
www.cityofeagan.com /parks
www.cityofeagan.com /Police
www.cityofeagan.com /Planning
www.cityofeagan.com /preschool
www.cityofeagan.com /Recreation
www.cityofeagan.com /RoadConstruction
www.cityofeagan.com /Seniors
www.cityofeagan.com /Showcase
www.cityofeagan.com/SpecialEvents
www.cityofeagan.com /Streets
www.cityofeagan.com /subscriptions
www.cityofeagan.com /Teens
www.cityofeagan.com/TreeSale (only available during active sale times)
www.cityofeagan.com/WebcastCentral
www.cityofeagan.com/WinterParking

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Learn About Brooklyn Park MN

The link for the city website is http://www.brooklynpark.org/

Here is a link for a Video Tour of the City http://www.elocallink.tv/clients3/mn/brooklynpark/tourplay.php?movie=broomn10wel_rev2_iwd&spon=welcome

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Learn About Hopkins MN

Here is a Link for a Video Tour of the City of Hopkins

http://www.elocallink.tv/clients3/mn/hopkins/tourplay.php?movie=homn_wel_rev2&spon=welcome

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Learn About Plymouth MN

Plymouth has lots of parks and a wide variety of housing. http://plymouthmn.gov/

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Learn about Savage Minnesota

Savage is conveniently located just across the river. Visit http://www.cityofsavage.com to access their city website information.

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Learn About St Louis Park

St Louis Park homes are pretty affordable and offer a good value within the marketplace.

Here is a Link to the City of St. Louis Park website :

http://www.stlouispark.org/

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Learn About Chaska Minnesota

Here is a Link to the City of Chaska website :

http://www.chaskamn.com/

Here is a Link for a video Tour Guide of the City

http://www.elocallink.tv/clients3/mn/chaska/tourplay.php?movie=chamnwel_rev1_iwd&spon=welcome&type=wh&flver=10&brver=6

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Getting Ready to Sell Your House

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Learn about Richfield Minnesota

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Learn About The City Of Edina

The City of Edina, MN does a great job of keeping current and future residents informed. Here are some of the resources. The City of Edina keeps its residents informed through a variety of methods. Start with a visit to the city website at: www.CityofEdina.com

· Also, through a “City Extra” email alert system (users must sign up at: http://cityextra.cityofedina.com

· On Twitter at www.twitter.com/EdinaMN

· On our YouTube channel: www.youtube.com/EdinaChannel16

· Via a quarterly print publication “About Town” http://www.cityofedina.com/pressreleases/L3-32_AboutTownSelect.html

I personally maintain an Edina Business directory at http://www.Edina.biz

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Learning About New Hope Minnesota

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HUD Has A YouTube Channel-Here Is There Vid On Buying A Home

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Google lets you create cool templated websites

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Song About The Twin Cities

How cool is this. I had no idea the band Everything But The Girl produced this video. Makes me wish for a warm summer day fishing by a lake.

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Can Home Ownership Contribute To Your Wealth?

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Minnesota Foreclosure And Distressed Home Fact Sheets PLUS Twin Cities First Time Buyer Special Programs

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Twin Cities Foreclosure Update

Here is our latest newsletter that has updates on foreclosures in the Twin Cities.

Also, watch the video below

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Minnesota First Time Home Buyer Tips

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Top Seven Tips For Home Buyers

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Data.gov – A Cool Site With Lots Of Great Info

http://www.Data.gov I just found this site and wanted to share it.  It has a ton of info and reports.  If you have a project or just an “inquiring mind”, this is sure to be a hit.  Check it out and get the data you need.

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Saint Paul Homes Gives People a Fresh Start

By Scott Ficek

Saint Paul is famous for being the other half of the Twin Cities and one of the most livable cities in the United States. Many people looking for a home choose this city as a starting point for all it offers. St. Paul homes are known for their beauty and design and affordable pricing for families. This city continues to be a drawing card for the many things that the city offers its residents and even travelers. Let us take a closer look at the city and the homes that make up this city.

The city of Saint Paul has a relatively young population with the average age being around 31 years old. There are many attractions in this city that drawn people here. Being in the North means you will get your fair share of cold weather and the St. Paul Winter festival is one of the more popular attractions in this city. People who looking to buy Saint Paul homes will find many things to do such as visiting parks during the summer time. The Minnesota Lake is also a very popular attraction among the locals all year long. Restaurants, Taverns, and shopping are also very popular in this area as well. No matter what age this city has something to keep you busy.

There are many reasons people chose to purchase homes in this area and they can vary greatly. This area has some affordable housing depending on what you are looking for. Great deals can be found on real estate properties such as condos, apartments and homes for sale. Saint Paul is also a city that values its neighborhoods and takes great care in keeping them up. While most cities neglect this area of a city, St. Paul continues to work on it. If you are looking for a new home or area to call home, this could be what you are looking for.

Scott Ficek helps buyers and sellers of Saint Paul Houses. He is also an expert at all aspects of Saint Paul Homes.

Article Source: http://EzineArticles.com/?expert=Scott_Ficek
http://EzineArticles.com/?Saint-Paul-Homes-Gives-People-a-Fresh-Start&id=4407053

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Saint Paul Minnesota Home Insurance – Ways To Lower Your Rate In Minutes

By Chimezirim Chinecherem Odimba

1. A higher Deductible will guarantee a lower Saint Paul Minnesota home insurance premium.

A deductible is an amount a policyholder is bound to pay before his/her insurer becomes duty-bound to fulfill the terms of their policy. The lowest deductible usually in home insurance is around $250. By increasing your deductible to $500 you’d likely realize savings of about 12 percent.

If you elect to make it $1000 you could easily get discounts of up to twenty-four percent. Different insurance companies may offer more or less so find out from your agent before you make this decision.

2. You can save much if you get several policies from the same company. Expect discounts anywhere from 5 to 15 percent if you choose to maintain more than one policy with the same insurer.

However, this isn’t recommended in every situation because the total savings got by getting policies from different companies may far outweigh any discounts you will get for buying multiple policies from the same insurer. You can only know by getting quotes from various insurance companies for your policies and then comparing what you’ll save by buying from separate insurers with what you’ll be given as multi-policy discounts.

3. The most vital step to huge savings in home insurance is comparison shopping — That’s if you do it correctly (Obtaining and comparing quotes from at least five sites). You can get quotes that will have a range in excess of $1,000. You could conveniently save that much by just going with the lowest quote.

That should apply if you’re just after the lowest price. However, if you’re after the best value to price ratio then you’d have to look at the details of the lowest quotes. Different companies may have different exclusions for similar policies. It’s wise to ask the agent what’s part of the deal and what’s not.

Here are my favorite pages for home insurance quotes…

InsureMe Home Insurance Quotes

Hometown Home Insurance Quotes

Publishers can get unique versions of my articles by following any of the links above. Click on “To Use My Articles” when you get to my site.

Chimezirim Odimba writes on insurance.

Article Source: http://EzineArticles.com/?expert=Chimezirim_Chinecherem_Odimba
http://EzineArticles.com/?Saint-Paul-Minnesota-Home-Insurance—Ways-To-Lower-Your-Rate-In-Minutes&id=845010

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Check Out Energy Rebates

EnergyStar.gov –  Check Out Energy Rebates

This is a government site that offers lots of energy saving tips as well as explains what energy saving grants or credits might be available.

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Foreclosure Trends Newsletter

Here is the latest issue of my foreclosure trends newsletter.  As you can see, the trend is not our friend, in the sense that the housing market has not recovered.  Until jobs come back and people are employed and feel safe in their employment, they will tend to avoid making a committment.

ForeclosureTrends.pdf

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Twin Cities Foreclosure Trends-From our MLS & Realty Trac

Besides the board of realtor sites:  http://theThing.mplsrealtor.com and market data posted elsewhere at http://www.MplsRealtor.com I have a subscription to Realty Trac.  My subscription gives me additional data about foreclosures and trends within certain zip codes.  This is in addition to my daily subscription to Finance & Commerce (a business newspaper that prints all the foreclosure information as well as very timely articles regarding the business community).  If you are looking for someone who has experience and access to information about distressed sales, we need to be working together.  Whether buyer or seller-I can help you understand the market we are in and the options and opportunities available to you.  Give me call today.

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Real Estate Information

These are a couple of my newsletters that have a ton of valuable information. Go check them out.

Foreclosure Market Trends Newsletter
http://www.realtytrac.com/MarketTrends/NewsLetter.aspx?guid=131bd355-1b69-4bd1-99cd-2f0c9a936810

Real Estate Cyber Space Tips
http://www.REcyber.com/cybertips/r11627

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Minnesota Children’s Museum

One of our favorite family places in the Twin Cities is the Children’s Museum. If you haven’t been there, take a look at their website at http://www.mcm.org/ and sign up for an event. Also, close by is the Science museum. Which is also very cool. Minnesota has a lot of excellent “quality of life” attractions. The museums are just one more reason to consider a move to Minneapolis or Saint Paul.

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Minnesota

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Commercial Real Estate 2010 – Recovering Or Declining?

Commercial Real Estate 2010 – Recovering Or DecliniBy Arnie Seltzerand Anna K Murray

Like much of the US economy, the commercial real estate market has been down the last few years. However, according to Moody’s Investor Service, US commercial retail prices have made modest increases from November 2009 through January 2010. This is from an all time low in October 2009. Is this the start of a recovery for commercial real estate and particularly what is the trend in the Minneapolis area? The following are opinions given by two realtors, who have a combined 45 years of experience in commercial real estate.

What is the current situation in your view?

First of all, it is important to understand that the problems in commercial real estate are not the same as the current residential real estate crisis. The residential real estate crisis was caused by a lot of bad debt allowed by overly lax qualification standards. There is not that kind of bad debt in commercial; instead a lot of businesses went under due to a long deep recession, thereby creating a lot more inventory on the market. The rate of businesses going bankrupt has apparently slowed down and it appears that most of the companies that are still in business now are going to survive. Many of the larger corporations actually have improved their cash situation. There is not any “poison” debt out there that still has to “work its way” out like in residential real estate. However this does not mean that we won’t still see commercial foreclosures due to the economy. The economy needs to continue to improve so businesses can start investing again. We believe that the worst is past, in fact, for the first time in several months we actually have seen a little activity on the user end (companies looking to buy or lease). Previous to that, all the activity was by companies looking to sell or lease out space. This does not mean that we expect to see things booming any time soon. Even companies that are in good financial shape are more reluctant to make a move right now, because there is still a lot of uncertainty. We see the buying process taking a lot longer and lease commitments are being made for shorter terms than in the past. Many reports that we see suggest that money will start flowing back into commercial real estate by the end of 2010.

What are some major factors that could affect a recovery?

One big factor is fear. Companies are afraid to make major moves right now. If the economy continues to improve, we believe that there could be a significant uptick in acquisition activity as businesses gain confidence. The industrial and retail sector tends to lead in a recovery while office space tends to follow them. We need to see some continued strengthening in retail sales for retail properties to start moving. There is a significant number of “big box” (i.e. large retail outlet or distribution spaces) that are on the market right now. Retailers and distributors are going to think long and hard about acquiring a 450,000 square foot facility. We see these types of properties being vacant for a very long time, unless someone comes up with some creative ways to utilize them.

Are there still good “deals” out there in terms of property acquisition?

Rental rates are still at an all time low. Even if average prices have nudged up slightly nationwide, we believe you should be able to get rock bottom or very close to bottom rates. Now would be an excellent time to negotiate some long term lease rates.

How is the Minneapolis/St. Paul area compared with the rest of the nation?

While things have slowed down significantly in this region, we are not seeing the devastating situation that Detroit is seeing with the automotive industry downturn. We also see New York, San Francisco, and Washington D.C. as being harder hit than Minneapolis. The Twin City area has a fair amount of diversity and has a high concentration of businesses in Health Care and Medical Technology. These markets tend to do better in recessions than other industries. There is a possibility that that the Twin Cities will see some strong economic recovery sooner than many other regions of the country.

When the last time commercial real estate was was was thriving?

The mid 1990′s to early 2000 were very good times for commercial real estate. After 9/11 a big downturn occurred. Commercial real estate recovered between 2003 and 2005 and was actually booming for the 2 years prior to the October 2008 stock market crash.

When do you think it will start to thrive again?

We believe that the industrial sector of this economy needs to expand significantly for us to see the kind of activity seen during the 1990′s. The dotcom boom in the late 90′s created a huge expansion in the technology sector. When industry thrives, demand for warehouse and manufacturing space increase. Office space follows as growing companies expand their support functions. The jobs created by industry spur on the retail industry which continues to fuels economic growth.

The Medical Technology sector could be one segment that could help commercial real estate in the Minneapolis area. While this area has been weaker lately, the population of the US (and the rest of the world) is continuing to age and should spur a stronger demand for medical technology and health products. Further, the drive to reduce health care costs could create a stronger demand for technology to improve efficiencies. Medical is one of the few industries where virtually 100% of the its manufacturing is still in the US, so a boom in the medical technology area could generate needs for warehousing, manufacturing space as well as more office space.

Arnold J. Seltzer has been engaged in the Commercial Real Estate Business since 1984. During this time he has specialized in tenant representation/commercial leasing of downtown Minneapolis office spaces and surrounding suburbs. Mr. Seltzer is the founder and CEO of Results Real Estate Incorporated.

Anna Murray is a 21-year veteran of the commercial real estate business whose commitment to serving the needs of her clients has earned her high praise from both clients and industry peers. She plays an important role on the Results Real Estate Inc., team as Vice President and partner.

Article Source: http://EzineArticles.com/?expert=Arnie_Seltzer
http://EzineArticles.com/?Commercial-Real-Estate-2010—Recovering-Or-Declining?&id=4055686

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Metro Lofts Condo For Sale

This outstanding loft is priced to sell.  Not a short sale or foreclosure-just a great deal.  Visit the link below and check out the virtual tour.

http://www.obeo.com/Public/Viewer/Default.aspx?ID=613257

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Outstanding Video-An Inspiration To All-Be The Best You Can Be!

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Twin Cities Home buyer book

Thinking about buying a home but don’t know where to start? Why not start by reading the home buyer hand book that we have provided below. It is a great place to start to get the information you need. When you’re ready, we would love to help you find and finance a new home.

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Your CLUE Insurance Report Matters

Article From HouseLogic.com

By: Mariwyn Evans
Published: August 28, 2009

Your CLUE insurance report keeps your homeowners insurance claims alive for seven years–and that could cost you on your premiums.

A tree falls on the roof of your house. You file an insurance claim with your agent, collect a settlement from the insurer, and fix your roof. End of story, right? Not quite. Every claim you make on your homeowners insurance is recorded in a widely used insurance industry database called CLUE, short for Comprehensive Loss Underwriting Exchange.

Almost all insurance companies use CLUE to check on the claims history of prospective policyholders. The CLUE insurance report also includes claims made on your home before you even bought it. A-PLUS is another company that maintains a loss-history database. What’s inside these reports can affect your insurance premiums, or even prevent you from getting coverage.

Your claims history lives on in CLUE

The CLUE Personal Property report, which pertains to homeowners insurance, is divided into two parts: your personal record of claims (“Claims for the Subject”) and the claims on your home (“Claims History for Risk”). The number of claims in either section will affect whether you can get insurance for your home, how much coverage you can get, and how much you’ll pay in premiums. If you’re turned down for homeowners insurance because of information in your CLUE report, your insurance company is required to let you know why you were rejected.

Since the database is used by most insurance companies, your claims history follows you from one insurer to another. Actual claims, as opposed to inquiries, remain in the CLUE database for seven years from the date you filed them. Both ChoicePoint, the owner of CLUE, and A-PLUS advise insurance carriers not to report loss information just because you called to ask a question about whether your policy will cover a particular loss. Individual insurance companies may keep a record of inquires, though.

How insurers use CLUE

Insurance companies rely on CLUE reports because statistics show that if you’ve filed a claim in the past, you’re more likely to file one in the future, says Dick Luedke, a spokesperson for State Farm Insurance. The amount of a claim is less important than how often you’ve filed, he says. “We aren’t trying to make up for past losses, but to predict the risk of future claims.”

Each insurance company has its own formula for calculating how much a claim will affect your premium, according to the Insurance Information Institute (http://www.iii.org/), a trade group that provides information to consumers. Suffice it to say the fewer the claims the less you’ll likely be charged. State Farm gives a 5% discount if you haven’t filed a claim in the last five years, says Luedke. That’s $40 off an average annual premium (http://www.iii.org/media/facts/statsbyissue/homeowners/) of $804. Ask your agent if a claim-free discount is available.

Claims aren’t all that count

Knowing what’s on your CLUE report will give you a sense of whether you’ll need to pay extra for homeowners insurance, or even if you run the risk of rejection. Unfortunately, even a pristine report doesn’t mean you can be sure of getting homeowners insurance at a great price. That’s because the claims on your CLUE report aren’t the only things that affect your overall insurance risk.

Insurance companies also consider your credit score, which is based on such things as how much debt you carry, whether you pay your bills on time, and so forth. According to the Insurance Information Institute, studies show that how people manage their finances is a good indicator of whether they’ll file an insurance claim. The more likely you are to file a claim, the bigger risk you are to the insurance company. And more risk means a higher premium or denial of coverage. Other factors insurers consider include the location of your home and its type of construction.

How to review your CLUE report

If you do decide to check you CLUE Personal Property report, it’s a relatively easy process. Under federal law, you get one free CLUE report a year. You can contact ChoicePoint by telephone at 800-456-6004. You can also register online (http://WWW.CHOICETRUST.COM) to gain access to an electronic copy of your report for 30 days. Request a form to receive a Property Loss report from A-PLUS by calling 800-709-8842. There’s a charge of $9 to have the report mailed to you, according to the company’s website.

Your CLUE report will have:
•Your name, home address, birth date, and Social Security number;
•The number assigned to the report;
•The name of your insurance company;
•The type and number of the insurance policy;
•The type of loss-fire, water, etc.-for each claim and the claim number;
•The date of the loss and the amount of each claim;
•The status of each claim: closed, pending, etc.

The report also tells you how to dispute any errors (http://www.houselogic.com/articles/how-to-correct-your-clue-insurance-report/) you find. Because risk calculations vary by insurance company, it’s impossible to say exactly how a claim on your CLUE report will affect your premium. That makes it tough to decide just how much value checking your CLUE yields. Still, taking less than an hour once a year to order and review your report could pay off, especially if you find an error.

Mariwyn Evans has spent 25 years writing about commercial and residential real estate. She’s the author of several books, including “Opportunities in Real Estate Careers,” as well as too many magazine articles to count.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.

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Homeowners Insurance: Time for an Annual Check-Up

Article From HouseLogic.com

By: G M Filisko
Published: August 28, 2009

An annual check-up on your homeowners insurance can result in a healthier policy and a healthier pocketbook.

It’s time for your annual check-up. The good news is that for this one, you won’t have to don one of those revealing hospital gowns-and you may walk away with a healthier pocketbook. We’re talking about a homeowners insurance check-up, a task you should complete once a year, ideally around renewal time. This will ensure your policy still provides the right level of coverage for your family, and your premium isn’t costing you more than it should.

Remember, homeowners insurance is essential. The coverage is designed to protect your home and its contents, as well as shield you from liability for accidents and such on your property. Block out an hour of your time, call an insurance agent, and get answers to these three important questions.

What type of coverage do I have?

The most effective type of coverage is known as “replacement cost,” which covers, up to your policy limits, what it would take today to rebuild your house and restore your belongings, says Jerry Oshinsky, a partner at Jenner & Block in Los Angeles who has represented homeowners in litigation against insurers.

“Extended” replacement cost coverage provides protection to your policy limit, say $500,000, and then perhaps another 20% of the cost after that. Percentages vary, but in this example you could recoup up to $600,000 on a $500,000 policy, assuming your losses reach that high. Extended coverage can compensate for any unanticipated expenses like spikes in construction costs between policy renewals. Now harder to find due to the industry shift toward extended replacement coverage, “full” or “guaranteed” replacement coverage covers an entire claim regardless of policy limits.

A less attractive alternative is “actual cash value” coverage that usually takes into account depreciation, the decrease in value due to age and wear. With this type of policy, the $2,000 flat-screen TV you bought two years ago will be worth hundreds of dollars less today in the eyes of your claims adjuster. Kevin Foley, an independent insurance broker in Milltown, N.J., favors replacement cost coverage unless you can save at least 25% on the premium for going with actual cash value coverage instead.

Even if you have replacement cost protection for your dwelling and personal property, don’t assume everything is covered. Structures other than your home on your property-such as a detached garage or swimming pool-require separate coverage. So too do luxury items like jewelry, watches, and furs if you want full replacement cost because reimbursement for those items is typically capped.

How much coverage do I really need?

OK, now that you’re clear on what type of policy you have, you need to figure out how much policy (http://www.houselogic.com/articles/homeowners-insurance-are-you-over-or-underinsured/) you truly require in dollar terms. Let’s say you purchased your home five years ago and insured it for $200,000. Today, it’s worth $225,000. Simply increasing your coverage to $225,000 may nonetheless leave you underinsured. Here’s why.

The key to determining how much dwelling coverage you need isn’t the value of your home but the money you’d have to pay to rebuild it from scratch, says Carlos Aguirre, an agent for Liberty Mutual Insurance in Arlington, Texas. Call your local contractors’ or homebuilders’ association and inquire about the average per-square-foot construction cost in your area. If it’s $150 and your home is 2,000 square feet, then you should be insured for $300,000.

There’s no rule of thumb for how much your homeowners insurance should cost. Insurers use numerous factors-age, education level, creditworthiness-to determine pricing, so the same policy could run you more than your neighbor. In recent years the average annual premium (http://www.iii.org/media/facts/statsbyissue/homeowners/) was $804. Oshinsky advises against scrimping on insurance because big increases in coverage probably cost less than you’d think. He recently purchased a liability policy that cost $250 for the first $1 million in coverage. Adding another $1 million increased his premiums only $12.50 more.

How can I lower my premiums?

The higher your deductible, the amount you pay out of pocket before coverage kicks in, the lower your premium. Landing on the appropriate deductible level requires remembering that insurance should cover major calamities (http://www.houselogic.com/articles/homeowners-insurance-to-claim-or-not-to-claim/), not minor incidents, says Foley, the independent insurance broker. Most homeowners should be able to absorb modest losses like a broken window pane or a hole in the drywall without filing claims. If you can, then you’re wasting money with a $250 deductible.

Foley’s rule: If you’re a first-time homeowner and don’t have a lot of savings, moving up to a $500 deductible will probably stretch your budget. However, if you live in a ritzy home and drive an expensive car, then you should be able to afford a $1,000 deductible. In Milltown, N.J., for example, the premium for a $200,000 home with a $500 deductible would be $736, according to Foley; moving up to a $1,000 deductible drops the annual premium to $672. That’s $64 in savings.

Every major insurer offers discounts to various groups, such as university employees or firefighters. Figure about 5%. Ask which affiliations would entitle you to a discount and how much. If an AARP membership would result in a $50 savings, pay the $16 dues and pocket the $36 difference. Many insurers also offer discounts ranging from 1% to 10% or more for installing protective devices like alarms and deadbolt locks, for going claim-free for an extended period, or for insuring both your car and your home with the same carrier.

G.M. Filisko is an attorney and award-winning writer who has been involved in insurance litigation. A frequent contributor to many national publications including Consumers Digest, Bankrate.com, REALTOR(R) Magazine, and the American Bar Association Journal, she specializes in real estate, personal finance, and legal topics.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.

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Create a Home Emergency Preparedness Kit

Article From HouseLogic.com

By: Wendy Paris
Published: August 28, 2009

Having a home emergency preparedness kit could be the key to your family’s safety if disaster strikes.

Preparing a home emergency preparedness kit you hope never to use may seem like a waste of time and money. But when disasters happen that are beyond your control, you can take charge of how you respond. “What became clear in Hurricane Katrina is that in big events, the government isn’t going to come to your aid right away. You have to be prepared to take care of yourself,” says Rick Bissell, PhD, a professor of emergency health services at the University of Maryland, Baltimore. According to a 2008 FEMA survey, more than half of all U.S. households have some sort of disaster preparation in place. If yours isn’t one of them, here’s what you need to do.

First, make sure important papers are in order

If a flood destroys your home, you could spend weeks or even months just trying to re-create the essential documents you’ll need to get back on track. That’s why it’s critical to have backups of important papers, including the deed to your house, proof of insurance, medical records, passports, social security cards, and a list of personal contacts. Keep one copy at home in a portable case and another offsite in a safe place. And while you’re at it, use the opportunity to check whether your insurance (http://www.houselogic.com/articles/homeowners-insurance-time-for-annual-check-up/) is up to date. “People often don’t know what their homeowners’ insurance policy covers, and most don’t cover flooding,” points out Bissell. Find out what hazards your area faces, and make sure you’re protected against them.

Tailor a preparedness kit to your personal needs

Humanitarian organizations and government aid agencies offer guidelines (http://www.READY.GOV) for creating an emergency preparedness kit. But along with the basics like food and water, it’s important to have what you need for your particular situation. You may not need extra blankets in southern California, but you do need escape ladders in case of wildfire. And you’ll want extra extra blankets to survive a winter power outage in Maine.

Think about what you need for the safety of your house, too. Knowing where to find the main electrical and water shutoffs-and having the right wrench to turn them-can make the difference between a house that weathers the storm and one that experiences catastrophic flooding or fire.

A basic emergency preparedness kit

FEMA (http://www.fema.gov/plan/prepare/supplykit.shtm) recommends you keep a “grab and go” bag with these items in case you need to evacuate:

Water: One gallon per person per day for at least three days, for drinking and sanitation; double if you live in a very hot climate, have young kids, or are nursing. Bottled water is best, but you can also store tap water in food-grade containers or two-liter soda bottles that have been sanitized. Factor in your pet’s water needs, too.

Food: At least a three-day supply of nonperishables and a can opener. Pack protein, fruit, and vegetables, but make sure they’re in a form you actually like-it’s bad enough not to have access to fresh food without also having to subsist on nothing but canned tuna. Include treats like cereal bars, trail mix, and Tootsie Rolls. Store food in pest-proof plastic or metal tubs and keep it in a cool, dry place.

Flashlights and extra batteries: “Candles are not recommended because there are many house fires caused by candles left unattended,” says David Riedman, a public affairs officer with FEMA.

First-aid supplies: Two pairs of sterile gloves, adhesive bandages and sterile dressings, soap or other cleanser, antibiotic towelettes and ointment, burn ointment, eye wash, thermometer, scissors, tweezers, petroleum jelly, aspirin or non-aspirin pain reliever, and stomach analgesics such as Tums, Pepto-Bismol, and a laxative. (All those Tootsie Rolls can be hard to digest.)
Sanitation and hygiene supplies: Moist towelettes, paper towels, toilet paper, garbage bags, and plastic ties. You might also want travel-size shampoo, toothpaste/toothbrush, and deodorant.

Radio or TV: Keep a portable, battery- or crank-operated radio or television and extra batteries to remain connected in case the power goes out, as well as an extra cell phone charger. You can buy a good emergency radio online from the Red Cross (http://WWW.REDCROSSSTORE.ORG).

Plastic sheeting, duct tape, and dust masks: In case you need to seal your home or shelter from airborne contaminants.
Extra items: A whistle to signal for help, a favorite toy or other comfort items for kids.
Cash.

Update your kit as your needs change, and replace food and water approaching its expiration date. You might pick a specific time each year to check, such as before hurricane season in the south or after Thanksgiving if you live in the north.
Wendy Paris is a New York-based writer whose work has appeared in This Old House magazine and other publications. She keeps chocolate chips on hand in case of emergency.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.

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Appeal Your Property Tax Bill

Article From HouseLogic.com

By: Barbara Eisner Bayer
Published: October 08, 2009

To successfully appeal your property tax bill, you first need to do a bit of sleuthing into your real estate assessment.

Owning a home is an expensive proposition. There’s maintenance, landscaping, utilities, renovations, and, of course, taxes. It’s your civic duty to pay the latter, but it’s also your right not to yield a penny more than your fair share.

It’s possible to trim your property tax bill by appealing the assessed value of your home. But making a case against your real estate assessment, the basis for your property tax bill, requires doing a bit of homework. Initial research can be done online or by phone over two or three days, but the process can stretch out for months if you’re forced to file a formal appeal.

Read your assessment letter

A real estate assessment is conducted periodically by the local government to assign a value to your home for taxation purposes. An assessment isn’t the same as a private appraisal, and the assessed value of your home isn’t necessarily how much you could sell it for today. Real estate assessment letters are mailed to homeowners annually, or perhaps every two to three years, depending where you live.

The letter will include some information about your property, such as lot size or a legal description, as well as the assessed value of your house and land. Additional details-number of bedrooms, for example, or date of construction-can often be found in the property listing on your local government’s website. Your property tax bill will usually be calculated by multiplying your home’s assessed value by the local tax rate, which can vary from town to town.

If you think your home’s assessment is higher than it should be, challenge it immediately. The clock starts ticking as soon as the letter goes out. You generally have less than 30 days to respond, though the time frame varies not just between states, but within each state. Procedures are often outlined on the back of the letter.

Gather evidence

Start by making sure the assessment letter doesn’t contain any mistakes. Is the number of bathrooms accurate? Number of fireplaces? How about the size of the lot? There’s a big difference between “0.3 acres” and “3.0 acres.” If any facts are wrong, then you may have a quick and easy challenge on your hands.

Next, research your home’s value. Ask a real estate agent to find three to five comparable properties-”comps” in real estate jargon-that have sold recently. Alternatively, check a website like Zillow.com (http://www.zillow.com/) to find approximate values of comparable properties. The key is identifying properties that are very similar to your own in terms of size, style, condition, and location. If you’re willing to shell out between $350 and $600, you can hire a private appraiser to do the heavy lifting.

Once you identify comps, check the assessments on those properties. Most local governments maintain public databases. If yours doesn’t, seek help from an agent or ask neighbors to share tax information. If the assessments on your comps are lower, you can argue yours is too high. Even if the assessments are similar, if you can show that the “comparable” properties aren’t truly comparable, you may have a case for relief based on equity. Maybe your neighbor added an addition while you were still struggling to clean up storm damage. In that case, the properties are no longer equitable.

Present your case

Once you’re armed with your research, call your local assessor’s office. Most assessors are willing to discuss your assessment informally by phone. If not, or if you aren’t satisfied with the explanation, request a formal review. Pay attention to deadlines and procedures. There’s probably a form to fill out and specific instructions for supporting evidence. A typical review, which usually doesn’t require you to appear in person, can take anywhere from one to three months. Expect to receive a decision in writing.

If the review is unsuccessful, you can usually appeal the decision to an independent board, with or without the help of a lawyer. You may have to pay a modest filing fee, perhaps $10 to $25. If you end up before an appeals board, your challenge could stretch as long as a year, especially in large jurisdictions that have a high number of appeals. But homeowners do triumph. According to Guy Griscom, Assistant Chief Appraiser of the Harris County (Texas) Central Appraisal District, of the 288,800 protests filed in his Houston-area district in 2008, about 58% received reduced assessments.

How much effort you decide to put into a challenge depends on the stakes. The annual U.S. median property tax (http://www.taxfoundation.org/taxdata/show/1888.html) paid in 2008 was $1,897, or 0.96% of the median home value of $197,600. Lowering that assessed value by 15% would net savings of about $285. In some parts of New York and Texas, for example, where tax rates can approach 3% of a home’s value, potential savings are greater. Ditto for communities with home prices well above the U.S. median.

There are a few things to keep in mind as you weigh an appeal. The board can only lower your real estate assessment, not the rate at which you’re taxed. There’s also a chance, albeit slight, that your assessment could be raised, thus increasing your property taxes. A reduction in your assessment right before you put your house on the market could hurt the sale price. An easier route to savings might lie in determining if you qualify for property tax exemptions (http://www.houselogic.com/articles/common-property-tax-exemptions/) based on age, disability, military service, or other factors.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Barbara Eisner Bayer has written about mortgages and personal finance for the past 15 years for Motley Fool, the Daily Plan-It, and Nurse Village, and is the former Managing Editor of Mortgageloan.com and Credit-land.com. She has successfully challenged her real estate assessment.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.

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A Financial Plan for Your Home

Article From HouseLogic.com

By: Richard Koreto
Published: August 28, 2009

Your home is probably the biggest investment you’ll ever make. Create a financial plan that takes into account repairs, upgrades, mortgages, insurance, and taxes.

You probably already have a financial plan for yourself in place. Most likely you sat down with an adviser at some point to set up a budget and diversify your investments. Or maybe you did it yourself online or at the dining room table.

But what about your home specifically, probably the biggest investment you’ll ever make? Did you really take everything into account: repairs and upgrades, the mortgage, insurance, and taxes? Probably not.
You need a separate financial plan for your home. Spend a weekend creating one. Once you have a handle on your home’s expenses, you can devise a long-term strategy that’ll let you live there for years with maximum enjoyment and minimum anxiety.

The mortgage: Paying it-and then some

Yes, you already shell out a lot for your mortgage, but can you pay more? Even a little extra each month can add up. Let’s say you have $200,000 outstanding principal and a 20-year fixed-rate mortgage at 5%. Your monthly payment is $1,319.91. But if you can manage to pay another $100 a month, you’ll save $14,887 in interest. Run the numbers (http://realestate-calc.com/Mortgage_Calculators/Mortgage_Calculator_Input_Add_Payment.asp) for yourself.

Alan D. Kahn, a financial planner in Syosset, N.Y., likes the idea of early payoff because lowering debt leaves you free to spend money elsewhere later on. There’s an emotional benefit as well. It can feel awfully good to own your house outright as soon as possible. And don’t fret too much about losing the mortgage interest deduction come tax time.

Toward the tail end of the life of a loan most of your payment is going to the principal, not the interest.
Nevertheless, the same extra $100 might also go into a retirement plan every month, or be put aside for the inevitable home repairs (more on those later). Michael Kay, a financial planner in Livingston, N.J., says while a debt-free life may be enormously important to your peace of mind, an extra $1,200 toward your child’s college fund every year may feel even better. It’s about what’s ultimately important to you, both emotionally and financially.

Insurance: Protecting your property

You’ll want homeowners insurance with full replacement coverage (http://www.houselogic.com/articles/homeowners-insurance-time-for-annual-check-up/) in case your house is burned to the ground. This sounds simple, but be careful on the calculation. Remember that you own a house as well as the land on which it sits. So even though you bought your home for $300,000, it may cost only $100,000 to rebuild it. Your policy limits should reflect this.

The differences are regional. Where land is at a premium, like much of Southern California, a higher percentage of the purchase cost is for the property rather than the structure. Where land is cheap, like much of North Dakota, most of the value of a new house is the house itself. Don’t be deceived by shifts in market values. You may have bought a $1.2 million townhouse in Florida during the boom that now may only sell for $600,000. But the replacement cost of the townhouse hasn’t changed much, so you can’t cut insurance costs that way.

Do, however, try to cut costs by asking your insurance agent about discounts. Making structural improvements, such as adding storm shutters, can lead to lower rates. Membership is certain groups, such as AARP or veterans’ organizations, entitles some policyholders to breaks on premiums as well.

Repairs and renovations: By choice or necessity

Throughout the life of your house, you’ll be making two kinds of changes. The first is the fun kind, like a marble floor for the living room. The second is the essential, behind-the-scenes change: a new water heater. You don’t have a choice about when you’ll do the latter, but you can prepare for it financially.

It’s a good idea to have a rainy-day fund. Start with the inspection report you received when you bought the house. Did the inspector indicate that you would need a new roof in five years? A new furnace in 10? Get estimates on what these repairs will cost and start saving. Consider ongoing non-emergency maintenance too. Do you live in New England? Price a snow blower and get bids from plow services. Resist the temptation to take care of everything with home equity loans (http://www.houselogic.com/articles/a-guide-to-equity-loan-options/), which defeat efforts to pay off the mortgage early.

As for the discretionary upgrades, act prudently. Matthew P. Havens, a financial planner in Hingham, Mass., has seen too many people rationalizing lavish upgrades as an investment when they really were lifestyle decisions. According to Remodeling magazine (http://www.remodeling.hw.net/2009/costvsvalue/national.aspx), an upscale major kitchen upgrade, for example, could cost nearly $112,000, but only about 63% of that will be recouped in the home’s resale value. This isn’t to say you shouldn’t upgrade. If you can afford to redo your bathrooms, go ahead. Just don’t confuse your necessary repairs (new oil furnace-about $4,000) with your discretionary upgrades (Viking range-$6,000 and up).

Taxes: (Almost) no way around them

Taxes are an essential part of your home’s financial plan. The bank that holds your mortgage may already handle your real estate taxes with an escrow account. If so the expense is built into your monthly mortgage payment. Check your statements or call the lender. Otherwise create a dedicated fund for property taxes, which can run into the thousands of dollars annually.

You may be able to reduce your tax burden by getting a reassessment. Do your homework first. Are comparable houses taxed less than yours? Ask the local assessor what formula is used to set tax rates. Kay, the New Jersey financial planner, researched and then challenged the assessed value (http://www.houselogic.com/articles/appeal-your-property-tax-bill/) of his own home and got a 15% rollback.

If you’re in a special group, you might get some help from state or local programs. Check around to see what’s available in your area. New York State, for example, has its Star Program (http://www.orps.state.ny.us/star/index.cfm) for giving senior citizens some relief from school-related property taxes.

Richard J. Koreto is a freelance writer. He has been editor of several professional financial magazines and is the author of “Run It Like a Business,” a practice management book for financial planners. He and his wife own a pre-Civil War house in Rockland County, N.Y.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.

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Open Source Documents-Unbelievable Resources-Find YOUR topic of Interest

If you’ve never visited http://www.Archive.org, you are missing a wonderful site.  From this site, you will find many resources that are out of copyright and you can download and use them as you wish.  You will find all the classics and some fun things as well.  Just for fun, I have the download of a book called “Little Gardens” which is a book about setting up a garden on a city lot.  This is just one of the MANY fun things you’ll find.  You can download and watch old music, movies, and cartoons as well.  Plan to spend some time on the site should you decide to visit, as it is very cool.  Click here to download the book Little Gardens

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Sell Your Home Faster-Learn The Home Selling Secrets Of Successful Sellers

Here is a special report that outlines over 450 ideas on how to sell your home faster.  This report is just one of the many home buyer, home seller, and investor reports that I can make available to you.  Read this report and call me to arrange a time to see how I can help.  Download Now

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Extension And Expansion Of Home Buyer Credit-4/30/2010

A Big WOW!!  The credit has been expanded to include homeowners who have owned their home for the past 5 years. No longer do you need to be a first time buyer.  The dollar limit is $8000 for first time buyers and $6500 for move up buyers.  This GREAT news.  Combine this with 50 year lows in interest rates, and you’d be crazy not to consider making a move.  If you feel secure in your job, think hard about buying  home at this time.  We can help you make the right move. Visit this site-which is from the National Association Of Home Builders  http://www.federalhousingtaxcredit.com/faq2.php This site give you all the rules and regulations as they now apply.

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Why Foreclosure Is Often Preferred By The Loan Servicer Instead Of Offering A Loan Modification

Have you ever wondered why a foreclosure occurs when a better solution might have been a modification?  Would you like to read the facts and figures and see how mortgages are bundled, sold and serviced?  You will soon see it is isn’t pretty, we are in the midst of a crisis, and it is likely to get worse before it gets better.  That being said, you can probably guess why-it’s about the money.  It is a little more complex than that-the report is 60 pages-but is explains the incentive and disincentives that are at conflict within the mortgage market today.  Once you understand how all the pieces go together, you can see that something “different” needs to be done.  I am a strong free market believer, but in this case, the government needs to have a mandate and rule that is guided towards keeping people in their homes.  Left to current industry solutions, the mortgage mess will continue to play out and get worse.  If you click on the link below, you will find the free report from the National Consumer Law Center.

http://www.consumerlaw.org/issues/mortgage_servicing/content/Servicer-Report1009.pdf

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Home Buyer Tax Credit Information Update

It’s now official!! The tax credit has been extended and expanded. YOU NEED TO HURRY! You now have until the end of April 2010. The following summary of the credit is provided by the National Association Of Realtors. The following two documents cover the changes in the new law. Now get out there and buy a home!!

NAR FAQ: Homebuyer Tax Credit Changes
NAR Issue Brief: Homebuyer Tax Credit Changes

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Neighborhood Stabilization Program- Hennepin County Redevelopment Tool

We work within the parameters of this program. One of our lenders will accept this form of funding. READ more about it and see if it might work for you. We would love to help you find and finance a home within the areas that qualify.

http://www.hennepin.us/neighborhoodstabilizationprogram

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Down Payment Assistance Programs (DAP) Lender Approved In MN

On of our lenders has pre-approved various down payment assistance programs. These programs MAY have changed and MAY be out of money when you contact them. Things change all the time. With that being said, we can use these programs in conjunction with FHA, My Community and the Home Possible loan programs. We are a Minnesota mortgage broker and may be able use these programs for YOUR transaction. Call us to begin the loan process and we can work together to find you a combination of funding sources that would work for you. Click Here

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YOUR DAILY COMMUTE: What’s it REALLY Cost?

Sometimes what we have is better than we think. Before you consider leaving the metropolitan area and moving to the suburbs or beyond consider the costs and quality of life. Specifically, consider the extra cost in terms of gas and time. Once you do the math, you may indeed decide that staying within the mpls first tier suburbs is the way to go.

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What is Happening in the Minneapolis and Saint Paul Real Estate Market?

Would you like to find out what is happening in the Minneapolis and Saint Paul real estate market? Look no further than http://www.mplsrealtor.com/the100.aspx All you have to do is enter the city you would like information about. You will get a one year synopsis and year to date information. There are other great statistics too-simply explore the links to the left on the Navigation bar. Compliments of the Minneapolis Board of Realtors

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First Time Home buyer Loan Programs & Other Special MN Loan Programs

Here is a matrix that is very helpful explaining just some of the mortgage programs and their guidelines. There ARE more loan options than these as well. MN loan options are constantly coming and going-guidelines change. We don’t work with all the programs, but we do work with many of them. Call us to help you navigate through the home purchase process and select the right loan for you. Look at the Matrix of programs provided. Click Here

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Minnesota Real Estate Newsletter Gives Access To Great Computer & Life Tips

I maintain a number of real estate sites, blogs, and newsletters. One newsletter that provides a number of computer tips to help you function better with a computer is http://www.REcyber.com/cybertips/r11627 The site is full of cyber space tricks and great places to visit. We have link to this site on the list of MN Real Estate links, but I wanted to highlight this particular newsletter because it different from what most agents provide. From this newsletter, you can also access all the back issues-from 2001 and beyond. It is really quite a useful resource-spend some time there if you have a chance.

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Make The Right Home Improvements & Increase Your MN Home Value

Are you ready to sell your Minnesota home for the highest dollar with the least amount of hassle? I have helped hundreds of MN homeowners get their home sold. Can I help you?

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Minnesota Home Seller Secrets

Are you ready to sell your Minnesota home for the highest dollar with the least amount of hassle? I have helped hundreds of MN homeowners get their home sold. Can I help you?

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