Have you ever wondered "how much paint do I need" when deciding how many gallons to purchase? Well now I have found a resource that might be helpful. It is an online paint calculator. Simply do some measuring and entering in the data and away you go. Having an approximation of the right amount is certainly better than having too much or too little. Keep in mind that a freshly painted home will show better and bring you a better price-assuming it is painted neutral or tastefully. In a market where buyers are scarce, this could be the extra edge you need.
Having been involved with more than a few short sales, I can tell you that it can go "either way". It might be a quick process with little pain that proceeds to a successful closing or it could be a mess with the second mortgage holding refusing to discount and instead decides to blow up the deal and fall on a knife. I just had one transaction that I thought was fair, but the lender said was too low. Instead, they offer do a deed in lieu of foreclosure. My sellers who were proceeding with the short sale of their Minneapolis duplex jumped at the deal. In fact, we might see the entire short sale process be the "new" way to sell homes. Starting April 5th, the government is rolling out a new program. Read the exciting details in this article.
Now MAY be the best time to proceed with a purchase of a new home or refinance. Artificial subsidy of interest rates by the federal government are about to end. Find Minnesota homes for sale from my website.
You've heard the old saying "Time is money," right? It's supposed to remind us that wasting time is often what costs us money. But make no mistake, time is NOT money.
I've written it before and will write it again and again: Money is replaceable. Time is not.
The credit card company Capital One recently released the results of a survey they did that at first surprised me, but the more I thought about it, did not.
The survey found that many Americans would trade more of their free time for more money. A LOT of their free time, in fact.
From a press release by Capital One announcing the results of the survey:
"... 25 percent of respondents who are employed full or part time would work every day of the year if it meant doubling their monthly income. What's more, 35 percent of respondents would agree to work on holidays and nearly one out of five (19 percent) would agree to give up all of their vacation days to receive twice their monthly salary."
That, to me, is just incredible. Every day of the year? One in four people would trade their weekends to double their salary each month?
The survey's results illustrate a couple of things that really strike me:
1. There is probably a "grass is always greener" thinking going on with many people. So many people believe that their problems will just disappear if they can only make more money. Don't get me wrong, doubling your income is nice, but there are tradeoffs and sacrifices that would come with working seven days a week. All your problems would not suddenly evaporate.
2. People are too willing to sacrifice the commodity that is more valuable than money, which is time. Like I said, time cannot be replaced. Time spent with your family, friends, doing things that enrich your life and make you happier -- that is something for which there is no substitute. There's nothing wrong with wanting to earn more, build your income or net worth, but it must be weighed against time cost, which is very real.
I don't know if you have kids or not, but I can't imagine explaining to mine that their dad wasn't going to be around because he wanted to double his monthly paycheck. The lesson I'd rather teach my kids is that working smarter and being financially responsible, building wealth, can lead to a lifestyle that allows them to spend LESS time working, not more.
There's nothing wrong with wanting to work hard to improve your financial situation, and it's something we all do or try to do. But trading time for money simply is not always the best deal.
Time is NOT money.
Trying to find the right Minneapolis St Paul area home with the wrong Twin Cities Realtor is kind of the same thing. You will waste your time. Let me help you find the right home today-24 years of experience will make the process easier and more efficient. Use your time wisely!
Did you see the news about the 1.5 billion dollars to help out the 5 states hardest hit by foreclosures? Why throw money at only the biggest problem? Why not come up with a solution-money or otherwise and allow all states to participate. Last time I looked, foreclosures were endemic everywhere.
Presidential Wisdom...Two Centuries Later
By Rob Minton & John Mazzara
"Property is surely a a right of mankind as real as liberty." -- John Adams
There is a lot of discussion going on right now about the role government should or should not play in helping citizens of a country achieve home ownership.
Government's role as an advocate for home ownership, for example, has been criticized and labeled one of the reasons for the subprime mortgage mess -- a mess, critics say, that was created by pushing something on people who couldn't afford it.
Even now, as the government, through tax credits and the purchase of bad mortgage-backed securities helps to prop up the housing market, the wisdom of those things is questioned.
Even the notion of "home ownership" has come under attack, with "experts" saying "rent, don't buy" and "It's not worth owning a home."
The thing is, even though President's Day 2010 finds us in quite a different position than we were two centuries ago, one of the foundations of this country is the ownership of property.
Look at the quote above by John Adams, the second president of the United States and one of the country's Founding Fathers. He believed liberty, freedom, is a basic human right. Obviously to him, that included the right to own property.
Of course, things were different then. Adams was president in a young America, during a time not long after its citizens had relatively recently won independence from England. Those early Americans who fought for their freedom did so in part because of how strongly they felt it was their right to own property -- not an easy thing for a "commoner" to do under a king's reign in the country they left.
Back then, the founding fathers recognized it was the government's role to protect the freedom of property ownership, and as the frontier of the New World expanded west, so did the government's support of property ownership. It was encouraged, subsidized. After all, the ownership of property by its citizens was one of the basic beliefs on which the United States of America was founded.
Somewhere along the course of the 225 years or so between the colonists' independence from England and today, however, that fundamental idea has gotten lost. Why? Because of a few bumps along the way?
Sure, there has been profiteering by some on the American Dream. Greedy bankers have been pegged as the enemy, with the U.S. government believed by some to be complicit, if not directly by action then by inaction when it comes to regulations. There have been instances of fraud and predatory tactics have been used on those who badly wanted the home ownership part of the American Dream.
But does that make the dream itself bad? Does that mean the government, despite the wishes of its Founding Fathers two centuries ago, should no longer back the dream?
Two-thirds of American adults are home owners, enjoying the freedoms, the pride of ownership and even some financial advantages that ownership of property provides. Owning a home is obviously important enough for 2 out of every 3 American citizens to work for that part of the dream. Many of them will probably tell you it's the best investment they've ever made.
Believe what you will about how big a role the government should play in helping its citizens achieve home ownership. Love or hate the fact that the government is propping up the housing industry right now with taxpayer dollars. But don't be so quick to attack the notion that a government should encourage home ownership.
It's what they had in mind more than 200 years ago.
Here is what our Minneapolis Board of Realtors president has to say about the housing data for our 7 county metro area. Prices may have stabilized, but what is the true trend? In my opinion, it is all about jobs-jobs that need to created and maintained. I got a phone call today from a potential client. He said he had lost his job and didn't know what to do. He felt foreclosure was probably his only option. That may or may not be his only option. The point I wanted to make, was that people losing jobs may eventually lose their home. In fact, I was invited to Lake Minnetonka to go ice fishing. My friend who invited me was able to use his neighbors ice house. His neighborhood has had about 5 foreclosures in two years. He lives on the water in Mound. Again, it is all about jobs.
This space has never been used for political views, so this is a completely non-partisan, no left- or right-leaning assessment of some of the things going on in the U.S. economy and what our government is trying to do about it. No matter which side of the aisle you fall on, you can probably agree that things are a mess.
Recently, much has been made of President Obama's jobs program included in his proposed budget. The idea is to bolster small business by giving tax breaks to companies that hire new workers and give raises or hour increases to existing ones. It's coupled with an initiative to provide more funds for small businesses to borrow at low costs, too.
Of course, the federations -- and by "federations," we mean "lobbyists" -- that represent businesses are saying "It's not enough." Democrat lawmakers are saying "It will be hard to make it work," and Republicans are saying "OK, but health reform comes off the table now." In other words, it's politics-as-usual in Washington.
But you know what? The proposed jobs initiative -- or at least the idea behind it -- is a start. And you gotta start somewhere.
It's a start because it FINALLY gives the government that seems so eager to put finger-in-the-dam billions here and special-interest billions there a way to FINALLY put some money toward a worthy cause.
Wealth-building.
If you think about it, that's what this country needs, a re-building of its wealth. Not stop-gaps. Not the false sense of wealth provided by tech or housing bubbles, but real, sustainable wealth. Money-in-the-bank, reduced-debt wealth. And where is that going to come from?
It will come from the entrepreneurial spirit of its citizens. It's got to.
It's got to come from inventors, creators of things, even if those things are ideas or services, instead of machines. It's got to come from producers of new things we need -- like fuel sources, medicine, better cell phone coverage, faster computers. Those people will drive the real wealth-building this economy, this country, needs.
Haven't we learned that Wall Street fat-cats don't do it? Speculation doesn't do it. Paying trillions of taxpayers dollars to banks that turn around and throw those taxpayers out of their houses doesn't do it. In other words, moving money around does not CREATE money. Nor does betting more money on the outcome of those moves.
Small businesses have accounted for 64 percent of the new jobs in the past 15 years. That is who "creates" jobs -- the smaller businessman, the gutsy entrepreneur. THAT is who is most worthy of government support, if anybody is. THAT is who should not be allowed to fail. That is who will build back America's wealth if he is allowed.
So while the job tax credit is not an end-all-be-all, it's at the least a start in the right direction, finally. Mark Cuban, a perfect case of American entrepreneurialism if there was one, recently wrote on his blog that the government shouldn't just give tax credits to the companies that hire. They should also roll back capital gains taxes on investors who put their money into those companies and find other ways for smaller companies to raise capital and reduce costs.
Hopefully, the policy-makers in Washington will take notice. They propped up the banks in the short term. They saved the auto industry in the short term. They addressed the housing market in the short term. It's about time they looked at some longer-term solutions to get this country back on the path of building real wealth.
That long-term solution is backing the American entrepreneur. The jobs tax credit isn't nearly enough, but it might be a start.
This video explains the Sweetheart deal that was created between Wallstreet and the government. If you've ever wondered why things are the way they are in the mortgage bailout, this will explain a lot. Is it any wonder we are in trouble? Now the FDIC is back looking for more government dollars. According to the information shared in the video below, investing in bad loans may prove to be profitable.
Tuesday, February 9, 2010, 2:57pm CST | Modified: Tuesday, February 9, 2010, 3:03pm
Rybak, Coleman announce $41M for first-time homebuyers
Minneapolis / St. Paul Business Journal
Minneapolis Mayor R.T. Rybak and St. Paul Mayor Chris Coleman on Monday announced $41 million in new funding for first-time homebuyers to purchase homes in both cities.
The funding comes available through the CityLiving Program, which offers below-market interest rates on mortgages as well as downpayment and closing-cost assistance. CityLiving Program is part of the HFA Initiative, a program which Fannie Mae and Freddie Mac have purchased bonds under an agreement with the Treasury and the Federal Housing Finance Agency.
In order to quality for the funding, homebuyers' household income cannot exceed $92,290 and the purchase price (for a single-family home) can't be greater than $276,870.
"More people owning homes in Minneapolis and Saint Paul means more prosperity, more civic engagement and more vitality in our Minnesota's core cities - and that's good for everyone," said Minneapolis Mayor R.T. Rybak in a statement. "For nearly 30 years, Minneapolis and Saint Paul have worked together through the CityLiving program to help 30,000 first-time homebuyers enjoy the benefits of city life."
In addition, each city has $500,000 available for assistance with downpayments and closing costs.
NOTE: You might want to check out how your local market fared on the report referred to in this article. Obviously, an undervalued market would be a selling point for you. You could also spin an "overvalued" market as a negotiating tool to get a property below asking price.
Four years ago, when real estate prices were rising like there was no tomorrow, National City Corp. and IHS Global Insight did an analysis of 299 markets in the United States and determined that homes were overvalued in 87 percent of the markets.
A new analysis, done by PNC Financial Services -- which absorbed National City -- and IHS shows that a big majority of U.S. markets, 242 out of 330, are now UNDER-valued. What's kind of interesting is that the markets that were ranked among the most overvalued four years ago are now among the most undervalued.
This illustrates what market timing expert Robert Campbell calls the "pendulum" effect. He points out that the further the pendulum swings one way, the further it will go in the other direction once it does change direction. In other words, the markets with the biggest overvaluations don't just tend to undergo a correction; they go through an OVER-correction.
The same thing happened in the stock market when it kind of crashed in 2008. Sure, stocks were overvalued prior to that, but the overcorrection brought even some blue chips into the ridiculously low-priced area. In the stock market, that has occurred before. But it might have taken the bubble of crazy proportions we saw in the last decade for us to realize that it could truly apply to real estate, too.
It's a lesson we should take note of and remember for the next bubble. Or if you're in Canada, think about how it might apply to the cycle you are experiencing now.
What this means in the U.S. right now is that, thanks to overcorrection, homes are undervalued in 242 of the markets in the U.S. That means homes are available at bargain prices. And it's logical to think that there will be another pendulum swing, meaning the places where homes are the MOST undervalued will, in theory, see the greatest appreciation.
According to the CNNMoney article, Richard DeKaser -- the real estate expert who did the report for National City -- said the original report predicted with uncanny accuracy what would happen when the bubble burst. According to the article:
"At the risk of immodesty, I must say the whole model has performed too well to believe," said DeKaser.
"I've done some research that shows when you get a bubble, you don't just return to normalcy," he added. "You go past normalcy for a long period of undervaluation."
It's a big lesson. And in four years, it will be interesting to again see where the pendulum is.
Recently I found a useful tool that will keep you up to date with real estate trends as they are happening. It is Real Estate Today Radio. Listen to it and see what you think. In addition to the radio show, consider visiting our Minneapolis Realtor site at http://www.MplsRealtor.com. When you go there, if you click on market activity in the navigation bar, you will find statitics-Monthly-year to date, and year over year. I think it is one of the best indicators of things such as marketing time to sell a home and percent of list to sale price. Average prices of homes can be skewed if there is a big variance of properties within that community. When you want to search for MN homes, simply visit my Minnesota RE/MAX website and begin your search. MN mortgage financing can be arranged at our mortgage site.
Information about minnesota real estate, twin cities real estate market, the twin cities, twin cities relocation, and other things that might be fun or of interest. Articles will be posted that describe the real estate and mortgage markets and provide useful information to first time buyers, move up buyers, and investment property buyers. http://www.MinneapolisStPaulHomes.com or http://www.MinnesotaRealEstateBrokerBlog.com
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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