Ryan Bretzel's Real Estate Thoughts

7 Tips to Prevent Water Leaking in Your Basement

Ryan Bretzel (Keller Williams Integrity) — Mon, 25 Mar 2013 18:42:06 -0700

Now that spring is here, the sun is shining and the temps are warming. But as the snow melts, it may be leaking right into your basement! With a little elbow grease, you can prevent about 90% of the chances that water will seep into your basement. If your basement is already finished, read the tips below to prevent water seepage.

1. Snow Rake - Use a snow rake to remove a few feet of snow on your roof. Not only will this keep less water from dripping near your foundation but it can prevent ice dams caused by improper insulation and air circulation in your attic.

2. Remove Snow - Shovel the snow out a few feet from your home. Keeping as much snow away from your home will lessen the amount of water that can be melted right into your basement.

3. Gutters and Downspouts - Make sure these are clean and working so that when water melts it is directed away from the home. Downspouts should be at least 3-4 feet, although 6 feet is preferred. If you don't have gutters this could be a good preventable addition.

4. Window Wells - Keep these protected with window well guards. Snow melting in window wells are an easy target for water to leak into your basement.

5. Grading - You home should have a downward slope away from the home for rain and water. In addition, if you have landscaping around the home you can lay heavy plastic under the landscape rocks or chips to divert water further from the home.

6. Sump Pumps - Spring is a good time to make sure your sump pump works. Dump a 5 gallon bucket of water down and make sure the pump turns on. Make sure the discharge hose is not frozen shut and properly exits the property. You might consider a battery backup system in case you lose power.

7. Caulking - Caulk any cracks in the foundation and areas between sidewalks or driveways and the home to prevent water from intruding.

10 Alternatives to Foreclosure

Ryan Bretzel (Keller Williams Integrity) — Tue, 05 Mar 2013 14:23:12 -0800

Here is a list from a fellow agent on some alternatives to the foreclosure process. Some might be better than others depending on where you live and the situation you are in so feel free to ask if you need help.

Via Evelyn Bruder, CRS, GRI, ABR, E-PRO (Steinborn & Associates Real Estate):

Today we want to pick up the conversation with some alternatives to foreclosure. This list is just part of our overall Foreclosure Resources that are available for free on our website.

Other Alternatives to Foreclosure

Short Sale

If you owe more on your property than it is currently worth, by negotiation with your lender you can sell the property for a price less than you owe and consider this as satisfying your debt. This a common solution.The Short Sale Process

Government Home Owner Assistance Programs

The rising number of foreclosures in this country is simply too big to ignore. That is why a number of government-backed program have been created that aim to streamline foreclosure avoidance options.Available Government Programs

Reinstatement

A reinstatement is the simplest solution for a foreclosure, but often the most difficult to achieve. The homeowner simply pays the total amount past due (including late fees) to the lender.

Mortgage Modification

A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these.

Deed-in-Lieu

Also known as a "friendly foreclosure," a deed-in-lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process.

Forbearance

A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back-payments over a period of time.

Rent the Property

This option does not require lender approval, but does require the homeowner's ability to rent the house for enough money to cover the monthly mortgage payment.

Servicemembers Civil Relief Act

If a member of the military experiences financial distress due to deployment-and their debt was entered into prior to deployment-he or she may qualify for relief under the Servicemembers Civil Relief Act.

Bankruptcy

Many believe bankruptcy is a "foreclosure solution," but this is only true in some states and situations. Entering bankruptcy can be a risky and costly process. Be sure to seek the advice of a qualified bankruptcy attorney when pursuing this as an option.

Refinance

Refinancing means you will acquire a new loan based on your current credit standing. If you have already missed mortgage payments, your credit score may make it difficult to find a loan with cheaper payments. Knowing that foreclosure can be avoided gives you the ability to develop a realistic strategy to plan for a future that is both financially stable and full of hope

FHA Mortgage Insurance Premiums set to Rise

Ryan Bretzel (Keller Williams Integrity) — Fri, 25 Jan 2013 10:17:57 -0800

As if there isn't enough things going up one more is coming. FHA's Insurance Fund; the fund that is used to payout when FHA loans get foreclosed is estimated to be negative $13.48 billion. This is what is estimated to carry 30 years worth of reserves.

HUD announced changes to FHA to begin sometime in 2013. A few other changes in addition to the monthly premiums and initial FHA insurance premium raising are:

Raising DTI for borrowers with low credit scores. FHA will require borrowers with credit scores below 620 to have a maximum DTI (debt to income ratio) of 43%
Moratorium on full cash out HECM (reverse mortgages)
Raising the downpayment for loans above $625,500 to 5%
Greater oversight on borrowers who are trying to obtain a new FHA loan 3 years following a foreclosure.

FHA is important in offering low downpayment options for buyers. Unfortunately due to the real estate market, job market, and the economy more FHA loans are expected to default resulting in the shortage and changes. If you are thinking about buying why not do it now while rates are still low, prices are continuing to rise, and extra costs like this have not set in yet.

Washington County Minnesota 0% Home Improvement Loans Available

Ryan Bretzel (Keller Williams Integrity) — Thu, 18 Oct 2012 10:13:43 -0700

It is hard these days to find cash or get a loan (without paying a high interest rate) when you want to do some improvement projects to your home. Most cities and counties actually have programs of either low interest, no interest, or deferred payment loans available to those that qualify. Many do not know about these programs available to them.

Washington County and the Greater Metropolitan Housing Corporation have teamed up with GMHC's Housing Resource Center to provide loans up to $18,000. These loans are 0% and do not have to be paid back until the home is sold, title transferred, or the home is refinanced.

This is a great opportunity to be able to do things to your home like paint, electrical, finishing off your basement. Loans are available to those who are at or below 80% of the area median income levels (ex. about $65,000 for family of 4). The home has to have a estimated market value under $242,850. Right now all owner occupied homes in Washington County with exceptions of Woodbury, Marine on St. Croix, and Grey Cloud Island are eligible.

There are other programs for these cities and most other cities in the Metro. You can find all the programs available by going to http://www.gmhchousing.org/programs/housing-resource-center Find your city in the drop down menu. Please see program details for more information.

Front Porches are IN and Garages are OUT

Ryan Bretzel (Keller Williams Integrity) — Fri, 28 Sep 2012 06:10:16 -0700

I recently read an article from US Today called Front Porches Hold Social Appeal that had some interesting facts. In 1992 42% of new homes built had a front or back porch. In 2011 that increased to 65%. Interesting enough it also showed that homes built without a garage or carport is at its highest since the late 1990's.

With gas price increases and public awareness for health and environment people have began to move into the city and choose walk-ability and social interaction over driving and space.

I know from working with many buyers that people do in fact love porches. It is a great way to enjoy the outdoors while being protected from the sun, rain, and snow. Many of homeowners have turned their 3 season porches into year round living spaces they can enjoy in the winter as well. It gives people a sense of getting out of their home in the winter without really leaving.

So if you're looking for your next home project think about porches. As the article states "You sit on the porch and talk to people walking by without having to invite them in. It's outdoor space without taking up too much space."

Buying a HomePath Home Using HomePath Financing

Ryan Bretzel (Keller Williams Integrity) — Thu, 16 Aug 2012 10:48:53 -0700

Advantages to Buying a HomePath home using HomePath Financing

You've probably seen the signs or heard of HomePath. Homepath homes are homes that are foreclosed and now owned by Fannie Mae.

There are some great advantages to purchasing one of these homes as compared to other homes. First the advantage is really only if you use HomePath financing. Not every lender has access but many do. When using HomePath financing you typically have a rate slightly higher than an FHA/Conventional rate however there is no mortgage insurance! Removing mortgage insurance can reduce your monthly mortgage cost by $50-150 per month. Even with the higher interest rate you still are better off which might allow you to purchase $5-20K more in a home with the same monthly mortgage as using other financial funds.

Another advantage with Homepath financing is that the appraisal is already completed. That will typically save you $400. Some of these homes would be questionable to go FHA or Conventional so having the appraisal already done means you can buy as-is and not run into appraisal issues.

The last advantage is the down-payment required. Homepath homes can be purchased for as little as 3% down. FHA is 3.5% and most Conventional is 5%. Make sure you talk to your lender about HomePath Renovation Loans which allow you to roll renovation money into your loan.

Homepath Homes are bought like most foreclosed/bank owned homes. The different is that offers are submitted online with 3 distinct uploads from the purchase agreement and addendums to Homepath.com. Typically response time is a few days but can be a week or two. When multiple offers exist a notice will be provided and a deadline as to when you need to respond by if you would like to change your offer in anyway. Most homes can be closed in the standard 45-60 days.

Summary of HomePath Financing:

1. No Mortgage Insurance

2. Appraisal already completed

3. Minimum 3% down-payment

Minnesota Homestead Tax Credit - Changing the way it is reported

Ryan Bretzel (Keller Williams Integrity) — Tue, 10 Apr 2012 07:51:02 -0700

Have you recently received your County Tax Statement in the mail? Does it look like your value has gone down a lot? Look closely though as that might be the new value that the county is assessing your home at. Starting this year Minnesota got rid of the tradition "Homestead Tax Credit" and revamped they way they credit it to you.

In the past you would receive a credit off your taxes for the home being a primary residence. This tax credit would phase out as your tax value increased, ultimately having no affect on values roughly higher than $414,000. This year what the county is doing is reducing the amount your home is taxed on provided it is homestead.

For example the county might say your home is valued at $200,000 so normally you would pay tax based on a value of $200,000 if this was a rental or non-primary home. Now the county will reduce the homestead tax value say to $180,000 and that is what they will base your tax off of. It will be labeled as an "exclusion" on your statement. There still is a credit it is just the way they figure it out changed.

The net affect is about the same taxed paid. Both ways also phase out at the $414,000 price. For all details visit this web page http://taxes.state.mn.us/property/Documents/hmve-taxpayers.pdf

7 Spring Maintenance Tips for Your Home

Ryan Bretzel (Keller Williams Integrity) — Tue, 27 Mar 2012 13:45:53 -0700

Now that the spring is in full force there are a few things you can do to keep your home running well and organized.

1. A/C - Take a hose and spray from the top down on the cooling fins (not just the blade, but the small fins on the side) of the condenser unit outside. This will remove dirt, grass clippings, and cotton wood seeds from the surface which can dramatically reduce the effectiveness of the unit. Remember you should not run your unit when the air outside is less than 60 degrees.

2. Gutters - Clean out the debris and make sure the down spouts are not clogged. Make sure the down spouts are connected and ideally you want them to exit water at least about 6 feet from the outside of your home.

3. Trim Trees - Now is the time before extra weight from the leaves and before the tree really starts production of growth. Remove any dead or unwanted branches. Remember to cut under the branch near to where it attaches before cutting from the top of the branch to reduce splitting and bark being removed from the tree.

4. Caulking - Now is the time before rain to caulk around windows, trim, driveway, foundation...etc. Anywhere where water can penetrate. Use a flexible caulk that will withstand both the extreme heat and cold. Remember some caulk is paintable and others are not.

5. Forced Air Filter - Soon you will be using the A/C and if you haven't changed the air filter in the last few months this would be a good time. I've found the best filters are the lower end ones. They have less air restriction than the high MERV rated filters which make the furnace work harder.

6. Water Heater - For many of us the water from the city is hard and has many sediments. Sediments can add up in the water heater and eventually cause it to fail. You should drain your water heater once a year to remove this build up.

7. Dehumidifier - If you have a basement it will probably be colder and more moist than the rest of the home. Turn on the dehumidifier and set it to something like 40% humidity. Ideally you want it to be between 35-50% relative humidity. If you have a built in humidifier you will want to clean the filtration system at this time so it is ready for next season.

How To Buy A HUD Home

Ryan Bretzel (Keller Williams Integrity) — Mon, 12 Mar 2012 19:55:50 -0700

Buying a HUD home can be a great opportunity at a fantastic price! However, without proper knowledge buying a HUD home can be very frustrating and potentially costly. My recommendation is to work with an agent who is qualified and has experience with HUD homes.

What is HUD?

HUD stands for Department of Housing and Urban Development. The department that handles home sales is based in Sugar Land, Texas. Homes are available in every state and since HUD is a government agency, buying a home through HUD is much different than other sales -- even bank-owned homes. They don't follow the same protocols or rules of a typical home sale. Following the rules and guidelines put out by HUD is essential for a successful transaction.

What is a HUD home?
A HUD home is a foreclosed home in which the loan was secured by FHA (Federal Housing Administration). When a loan is defaulted, FHA pays the lender's insurance, which is why there is an monthly insurance premium on loans. The ownership is then transferred to HUD.

Prices of HUD Homes
A HUD home is appraised using an FHA appraisal. This is the fair market value, and the provided appraisal can be used by a new buyer as long as the price agreed upon is at, or below, the value and a new FHA loan is used to purchase the home. This can save the buyer $400-450.

Condition of HUD Homes
HUD home sale are as-is, which means they can be in any condition ranging from perfect to a fixer-upper. HUD will do an initial inspection of home, including a pressure test to detect any potential leaks, and report on the findings. However, buyers are encouraged to get their own inspection by a qualified home inspector. Repairs must be done by the homeowner after purchasing.

Finding HUD Homes
You can find HUD homes by visiting www.HUDHomeStore.com or talking with an agent who is qualified in helping purchase HUD homes.

When you've located a home you would like to see, any HUD-approved real estate office can show you the property. They are listed on the web site. HUD employees do not work with home buyers, you must use an agent.

How To Purchase a HUD Home?
When you have located a property of interest, the first step is to check through the online system to see if the home is available or not. Most homes will also have a bidding period. Typically, when a home is brand new to the market, there is a 10-15 day period where no bids will be accepted, but the bids are due by 11:59 of the last day of the period. HUD will review all the bids submitted to determine if one is acceptable. After the initial waiting period, bids are usually due at midnight each day. You cannot see the other bids so it is always best to put your best foot forward. When accepting a bid, HUD will generally look at highest net versus the type of financing or down-payment amount.

If your bid is accepted you will get notified and will be required to provide HUD with a purchase agreement sales contract (available through the HUD website). This contract needs to be signed in BLUE ink with original copies. A cashier's check made out to "HUD or "Buyer's Name" for the required amount (usually $500 or $1000) will also be required. All pages, signatures, and checks need to arrive in Sugar Land no later than 2 business days from acceptance. You need to overnight ship the package to get there in time. If it is late, they can and will cancel the offer!

If HUD accepts the contract an email with the accepted contact signed will be sent. If the home is winterized the buyer will then need to send a cashier's check for $125 or $150 to the management company to re-winterize the home after the inspection is completed. A utility activation form also needs to be sent in. Buyers are required to put the utilities in their name during the 3-day inspection/appraisal period.

Buying a HUD Home For Investment Purposes

Most homes will initially have a period where only owner-occupied bids can be submitted. If the home doesn't sell in a certain time, then investors can put in bids.

Special HUD Programs

HUD will offer some of its homes to nonprofits, government agencies, teachers, and law enforcement for as little as $1! There are some stipulations in order to qualify, including owner-occupied status, length of the home ownership, and the location of the home.

Important Things to Remember

-All pages must have original, blue-ink, wet signatures. DO NOT miss pages or signatures or you will have to send the entire package again.

-If you do not hit the closing date a per day diam charge will be accessed

-Make sure you know if the home is either "insured" or "un-insured" so you know what type of repair escrow can be done.

-Make sure your lender has done HUD homes before, as they want a specific pre-approval letter.

-When funds of over $5,000 for a downpayment is used, a special letter or proof of funds is required.

-Read, read, read the rules and guidelines! You can also find videos and live chats on the internet to answer your questions.

Cash Investors Purchase as Rent Continues to Rise

Ryan Bretzel (Keller Williams Integrity) — Wed, 02 Nov 2011 23:38:56 -0700

With interest rates so low and prices so affordable one would think more home buyers, especially first time home buyers would be buying homes. The reality of the picture however is that with the job market slow people don't have much money and/or stable jobs and lending criteria has tightened up leaving many wanting to buy but unable.

The real winners right now are those investors taking advantage of the situation. With many folks either wanting to rent or forced to rent because they lost their home to foreclosure has caused the rental business to be on the rise. Rent has risen 3% in the 3rd quarter of 2011. The lack of new construction and demand has limited the amount of vacancies in rentals.

Investors accounted for 18% of all home purchases in July and 22% in August. Cash buyers were 30% of all transactions!

Many investors are buying places for $40,50,60K and renting them for $750-1000 and making 10-30% returns after expenses. Many times even more. There is virtually no where in the stock market or bank where you can make this type of return.

The rental business is not easy and being a landlord can be stressful but with the right property portfolio, business plan, and rate or return you can turn into a very successful business person. There are many that have made their wealth with real estate and rentals.

Men List More Homes; Females List More Expesive Homes

Ryan Bretzel (Keller Williams Integrity) — Wed, 19 Oct 2011 23:59:45 -0700

I was reading an article today based on some data that Trulia ran from Trulia Realtor profiles. It concluded based on over 100,000 agent profiles that men Realtors on average list more homes than females and female Realtors list on average more expensive homes. Now I haven't specifically noticed this but in thinking about what I have noticed in this respect the agents that do seem to have a lot of homes for sale tend to be men and many of the celebrity homes are listed by women.

I'm not really sure why this is the case. Certain clients do tend to gravitate towards either men or women Realtors and people sometimes choose certain nationalities too. I have heard people before say something like they had a man Realtor and it didn't go so well so next time they will choose a women and vise versa. Some of the stats Trulia found were that in West Virginia women listed homes on average that were 63% more expensive. Alaska had the opposite with men's listings 72% more expensive. When it came to number of listings in North Dakota men had 129% more but in Mississippi it was the females who listed 42% more homes.

Here are some graphs below:

Overall there are more women Realtors than men. To read the whole article visit http://insights.truliablog.com/2011/10/is-real-estate-a-mans-or-womans-world/

10/1/11 FHA Loan Limits Set To Revert to 2008 Limits

Ryan Bretzel (Keller Williams Integrity) — Thu, 01 Sep 2011 00:17:28 -0700

Potentially affecting 669 counties in the United States is a decrease in the FHA loan limit ceiling for borrowers. Currently in the Twin Cities Metro the limit is $365,000 but the previous limit was $318,550. This is a $46,000 difference!

The temporary higher mortgage limits that went into effect for FHA loans under the Housing and Economic Recovery Act (HERA) are expiring 10/01/2011 and will be reduced to the FHA Mortgage limits in effect prior to the temporary increase as values had increased throughout the country. Borrowers will either have to purchase less expensive homes or come up with larger down payments to reduce the loan limit. This will make homes in the upper $300's and $400K range less marketable.

Without congressional action, FHA loan limits will revert back to 2008 loan limits determined under the Housing and Economic Recovery Act (HERA) for loans insured by FHA on or after October 1, 2011. As a result, FHA loan limits would likely decline in 669 of the 3,334 counties or county equivalents that are eligible for FHA insurance. A complete list of FHA loan limits for the 669 potentially affected counties and county equivalents is provided in the link below by HUD

http://portal.hud.gov/hudportal/documents/huddoc?id=fhaloanlmhera.pdf

Be The First To See, New Home Coming To The Market in Como Park

Ryan Bretzel (Keller Williams Integrity) — Thu, 25 Aug 2011 00:02:25 -0700

Coming to the Market Soon! Be the first to see this home before the rest of the public sees it. 3 Bedroom 2 Bathroom All Brick Home located in Premier North Como Park area. Build equity fast with an unfinished basement.

Updates include – New Kitchen, New Bathroom, New Windows and More…Offered at $229,900 – Schedule your showing today!

3 Important Things To Consider When Buying a Home

Ryan Bretzel (Keller Williams Integrity) — Thu, 21 Jul 2011 09:31:30 -0700

You have probably heard that location, location, location is an important factor when buying a home. It is of course one of the biggest factors in the value of a home. Here are 3 things to consider and the weight they have in the value of a home today and in the the future.

1. Location

Location will hold probably 80% of the homes value. It is what city the home is in, how close the home is to shopping, public transportation, recreational activities, and school districts. These are things that virtually will not change. Now you can move a home but it is pretty tough and very costly. Location is the hardest thing to change about a home.

2. Floor Plan

The floor plan would be how the home is laid out. The layout of a home recently appears to make a big difference in the final sales price of a home. Not only are we talking about the flow or openness of the home but the ability to add or or change the home if necessary. Many homes are "funky" in the layout and they take a large hit on value. If you as a buyer think the home has a weird layout then future buyers will probably think the same.

It is not really easy to add a 2nd story onto a home or put large additions on a home but it is much easier than moving a home to another town.

3. Amenities

Amenities would be the simple things like main floor laundry, fences, decks, dishwashers, hardwood floors. These are little differences in a home that can add some quick values or negatives to a home that buyers pick out fast. You can almost thing of amenities like cosmetics.

The amenities should be the least of a buyers concerns with buying a home. If a home is in the area you want, the layout is good but you just need to change some counter tops, add a fence, or add a dishwasher that is much easier than location or floor plan. So the old saying, "location, location, location" still stands true in Real Estate.

June 2011 Twin Cities Real Estate Market Update

Ryan Bretzel (Keller Williams Integrity) — Wed, 22 Jun 2011 23:46:09 -0700

The latest Monthly Skinny was released from the Minneapolis Association of Realtors (MAAR). Emily Green, 2011 MAAR Treasure, talks about the trends and implications of last month's numbers (May).

Highlights Include:

May 2011 Pending Sales are UP 13.2% from May 2010.
May 2011 Inventory is DOWN 11.8% from May 2010.
May 2011 Median Sale Price is DOWN 12.6% from May 2010.
May 2011 Months of Inventory is UP 11.9% (8.5 Months) from May 2010. A balanced market is 5-6 months of supply

http://www.youtube.com/user/MinneapolisREALTORS#p/u/1/VNkvdJ_FWyY

The favorable improvements in Pending Sales and Inventory being down may have more to do with the substantial drop off seen after the expiration of the 2010 tax credit more so than market improvements. That being said, we cannot discount that there is less competition on the market as well as incredible interest rates.

How To Determine the Ages of Updates and Remodels

Ryan Bretzel (Keller Williams Integrity) — Thu, 09 Jun 2011 08:50:14 -0700

As a buyer you probably have seen updated bathrooms or windows and wonder when they were done. There are some ways to find out with a little looking. Here are some ways:

Windows

- look inside between the double pane glass for a manufacturer's date. There might also be one etched in the glass in a corner of the pane. Lastly lift the window up and look for a sticker underneath or on the sides.

Toilets

- Look underneath the tank lid. There is usually a manufacture date stamped into the ceramic or porcelain

Unfinished Walls Exposed

(ie unfinished newer Garage) - Look for dates stamped on the wood. This could be on the 2x4's or the wood sheathing used on the roof

Appliances

- Refrigerators are usually the best as there is a manufacture date on most located on a sticker inside the door on an interior wall. Many stickers that indicate the serial number or model number might have a manufacture date.

Hotwater Heater

- The safety code date is always put on the description of the heater. This is a date in which the latest laws were updated. This would indicate the oldest the unit could possibly be. It in fact may be several years newer

Furnace

- Furnaces are hard but sometimes you can decipher based on the serial number. Most inspectors can run the serial numbers and get fairly close. If you look at enough furnaces you can tell roughly what decade it is in

A/C

- These are similar to furnaces

Most of the time you can tell ages based on the style and color of something. For example if I see mauve carpet and gold light fixtures you can assume that is a 90's update.

Home Value Protection Plan, Really???

Ryan Bretzel (Keller Williams Integrity) — Tue, 23 Nov 2010 18:06:34 -0800

In reading a back issue of REALTOR (July/August '10) I came across an advertisement for Home Value Protection. It is supposedly some program that buyers or sellers can buy in which it protects a home's value against local market declines. They state it "gives buyers the confidence to buy without fear, and helps sellers to sell faster." I ended up going to the website provided www.workingequity.com/pro but the website said coming soon. I wonder when that will be since it has been several months since this advertisement was released.

Anyways I did a Google search and found a Wikipedia link http://en.wikipedia.org/wiki/Home_Equity_Protection that describes the program a little more in detail. Basically what the program is, is that the person buying the plan purchases it for about 1.5% of the current value and then the person is required to live in the home for at least so many years, usually anywhere from 3-15 years. If they move before this time they get no insurance coverage. Well this might be good for someone moving in 3 years with the current market, this is an absolute waste for someone who stays in their home for 5-10 years. In 5-10 years the home should be worth at least what it was bought for or more, based on historical evidence.

Unfortunately I feel this is another way for another company to make some money with small fine print consequences. If someone it thinking about buying a home and not sure if they are not going to live in the same place for a minimum of 5 years then you probably shouldn't buy. Owning a home is a long term investment. It is not considered to be a short term one. The years of 2000-2005 put different thoughts in peoples minds. A home is a place to raise a family, the feel of security, a place to change as you change without asking a landlord, and a place to welcome guests. It is the American Dream but it was abused. I find this program a joke. I've never seen declining insurance for my phone, tv, or car's value. Why don't they offer insurance for declining values on these?

10 Things to watch when buying foreclosures and shortsales in Minnesota

Ryan Bretzel (Keller Williams Integrity) — Thu, 04 Nov 2010 15:17:42 -0700

I recently had a friend ask about what to watch for when buying a short sale or foreclosure. Though these properties can be bought at significant discounts there are some risks as well that can be assumed. You don't always know the outcome but at least know the possible risks.

Things to look for when buying short sales:

1. Has there been a sheriff's sale yet, if so you have 6 months to sell the home before it is foreclosed on.

2. If the sheriff's sale was done about 5-6 months ago it is probably not worth writing on.

3. Find out what the sheriff's sale amount was from the sheriff's office. If it is considerably less then the market value then you might be able to redeem the property through the sheriff's deed.

4. Make sure the other agent has done short sales or has a negotiator they work with. If they do not get all the required paperwork into the bank then it is a big waste of time for everyone.

5. Many banks will only allow up to 3% of seller paid closing costs. If the buyer requires more they will have to pay the difference.

Things to look for when buying foreclosures:

1. You will most likely get addendum's back from the bank to sign. These can not be altered and a heavily favored towards the seller/bank.

2. Watch for the "effective date" or "contract date" all important time frames go back to this date.

3. Know when you need to get your inspections done. The buyer may have to pay to have the property de-winterized and or re-winterized

4. Read how taxes and assessments are paid. Many banks are getting the buyer to assume any unpaid assessments.

5. The bank will try and make the buyer use their title company and closer. These owner's policies they provide for using their people are many times not as good, so don't save the money because it is not worth it.

******Special tip regarding Title Insurance******
Old Republic Title, the largest title insurance company in the U.S. is now not insuring certain properties of post-foreclosure REO properties of Ally Bank/GMAC and JP Morgan Chase held for FNMA in the following 23 states: Florida, New York, Ohio, Illinois, Pennsylvania, New Jersey, Connecticut, Hawaii,Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Mexico, North Carolina, South Carolina, North Dakota, South Dakota, Oklahoma, Vermont, and Wisconsin. Please be aware if you are purchasing one of these!!

There is no prohibition on writing title insurance on any other properties with a mortgage foreclosure in the chain of title or on any other properties involving Ally Bank/GMAC or JP Morgan Chase. When issues concerning the foreclosures involving those two lenders are resolved, we expect to insure those transactions, also.

Twin Cities Market Update

Ryan Bretzel (Keller Williams Integrity) — Thu, 21 Oct 2010 16:26:27 -0700

Currently we have seen an increase in activity of buyers in the area. New listings are down 4.1% from this time last year and active listings are up 11.5%. The biggest change is Pending sales are down 44.8% from this time last year!

The days on market for a home to sell went from an average of 129 in September 2009 to 132 days this September. Another interesting fact is that the percent of sales price received versus list price is down from 93.9% in September 2009 to 90.9% this September.

Months supply of inventory have gone up from 6.6 to 8.6 months. Closed sales are down 33.5% from this time last year. Median sales price went from $170,000 to $166,000 and average sales price went from $204,874 to $217,723.

The big change resulting these numbers was largely do to the fact of the tax credit that took place during the past year which ended this April. This pushed many sales to happen earlier in the year leaving the fall to few buyers. It is nice to see the activity increase but buyers are acting cautious and making sure they are making the right decision.

**data is based on the information from the Regional Multiple Listing Service.

Fannie Mae's Policy Changes, Possible Ramifications for those who Walk Away

Ryan Bretzel (Keller Williams Integrity) — Thu, 22 Jul 2010 18:39:33 -0700

Fannie Mae's policy changes have several goals:

1. First encourage homeowners to work with their lender to pursue alternatives to foreclosure.

Such as loan modification, a short sale, or a deed-in-lieu of foreclosure.

2. Homeowners who walk away and had the capacity to pay or did not work out alternatives may not be ineligible for new Fannie Mae-backed loans for a period of up to seven years.

Borrowers who made a good faith effort to resolve their situation with their lender may be considered for a future Fannie Mae loan in a shorter period of time, depending on "extenuating circumstances" such as a major medical illness. Here are two examples:

- Borrower A

worked with their lender in good faith and completed a deed-in-lieu of foreclosure or a short sale/pre-foreclosure sale.After 2 years: He may be eligible for financing with a minimum of 20% down, subject to additional requirements such as a minimum FICO score.After 4 years: She may be eligible for financing with a minimum of 10% down, subject to credit score minimums and other requirements. After 7 years: He is eligible for financing with standard minimum down payments in place at that time, subject to credit score minimums and other requirements.

- Borrower B

did not work with his lender and his home was foreclosed. He must wait a minimum of 7 years before being considered for financing.

3. To allow legal action to recoup outstanding mortgage debt from homeowners who "strategically default" on loans

(in jurisdictions that allow for deficiency judgments). Like if the home was an investment home.

Coon Rapids Deck Collapse - Why It Happened

Ryan Bretzel (Keller Williams Integrity) — Wed, 14 Jul 2010 12:59:08 -0700

Keep your eyes out for decks that are built like this. You don't want to fall victim to a collapse!

Via Minneapolis Home Inspections - Reuben Saltzman (Structure Tech Home Inspections):

If you watched the news this weekend, you probably heard about the deck collapse that happened in Coon Rapids on Friday. On WCCO news, they even had an expert speculate that the deck collapsed because it wasn't properly secured to the house. When I hear news stories about a deck collapses, they usually say they'll come back to the story once they learn what the problem was, but they never do...

so I decided to inspect this Coon Rapids deck myself. Here's what I found:

Epic Fail

According to WCCO, there were only five people on this deck when it collapsed. The problem wasn't that the deck was improperly attached to the house - this deck was completely missing a post.

I marked up two photos to show exactly what went wrong. Click on the photos to get a large version.

As you can see, one corner of the deck wasn't help up by anything. The floor joist that was closest to house is what was actually holding up that entire corner of the deck. It's a wonder this deck even supported it's own weight.

While most advice about deck safety deals with proper bolts, nails, brackets, etc, it's just as important to take a step back and look at the big picture. Proper nails and bolts aren't a substitute for a proper load path back to the ground.

Reuben Saltzman, Structure Tech Home Inspections - Email - Minneapolis Home Inspections

Tax Credit Extension To Have No Affect on Government Budget

Ryan Bretzel (Keller Williams Integrity) — Wed, 23 Jun 2010 14:44:42 -0700

As you may be aware the Senate voted 60-37 last Wednesday to extend the First Time Home Buyer Tax Credit until September 30, 2010 ONLY for buyers who had signed contracts by April 30, 2010. Due to the fact that many buyers have offers on short sales the time to hear back from the bank and close was not enough. This way they could take advantage of the tax credits provided they get the bank approval and close by September 30th. Without it, buyers must close the deal by the end of June to get the $8,000 first-time credit or the $6,500 credit for people who already own homes.

This still needs to pass the House vote but most believe it should. The good thing about the extension is that is should not have an affect on the goverment's projected budget. They already figured on these purchase agreements to close by next week.

****Special Rules for Members of the Military, the Foreign Service and the Intelligence Community****

Remember if you or someone you know is a qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011! This means you do not have to have a purchase agreement written before the original April 30th, 2010 date.

A person who is forced to return to the U.S. for medical reasons before completing an assignment of at least 90 days of qualified official extended duty outside of the United States may qualify for the one-year extension.

For more info visit: http://www.federalhousingtaxcredit.com/service_mem.php

FHA 203K Re-hab Loan Repair Guide; Qualifying and Non-Qualifying Repairs

Ryan Bretzel (Keller Williams Integrity) — Sun, 23 May 2010 00:18:22 -0700

Here is a quick guide I received from my loan officer regarding what you can and can not repair when using the FHA 203K rehab loan. Remember this is just a guide and not an everything list. Also remember the contractor doing the work needs to be approved by FHA 203K.

Borrower(s) Shopping Guide to Qualified Repairs Allowed with 3.5% Down

Minimum Down 3.5% of Total Project Cost (Funds can be own or gifted)

Examples of repairs that would qualify for the program:

Repair/ Replacement of roof, gutters, downspouts with permit

Heating/air conditioning- possible permit

Upgrade/Repair plumbing, and electrical systems with permits

Septic system and/or well repair or replacement with permits

Replacement of flooring, windows, doors, exterior wall re-siding

Minor remodeling such as kitchen or bath with no structural repairs, permit maybe required

Painting of exterior/interior

Purchase and installation of appliances

Handicapped accessibility improvements

Weatherization, painting, basement waterproofing

Repair/replace/add deck, patio or porch with permit

Minor remodels that do not involve structural repairs

Basement finishing and remodeling, which does not involve structural repairs with a permit

Pool repair maximum of $1,500 in repairs allowed

Examples of repairs that do not qualify for the program:

Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall

New construction (including room additions)

Repair of structural damage

Repairs requiring detailed drawings or architectural exhibits

Landscaping or similar site amenity improvements

Any repair or improvement requiring a work schedule longer than six (6) months; or rrehabilitation activities that require more than two (2) payments per specialized contractor

NO to a garage, unless you are repairing an existing one. Cannot build a garage

Median Home Sales Price Update for the Twin Cities

Ryan Bretzel (Keller Williams Integrity) — Sun, 16 May 2010 23:43:54 -0700

Tax Credit, economy recovering, or both; numbers are numbers and at least they are positive. i was recently reading an article in the Pioneer Press posting the latest numbers from the Minneapolis Area Association of Realtors regarding April 2010's median sale prices compared to April 2009 numbers. The 13 county Twin Cities Metro median home sales price is up 11 percent. The April 2010's median sales price was $169,800 versus a 2009 sales price of $153,000.

Of course the biggest question is are these prices due solely because of the tax credit or other factors? It would be naive to think that the tax credit had no impart. The last week of April's pending sales we up 31% compared to the same time last year. Buyers were hurrying to get the offer accepted before April 30th. Interest rates are still very low, the lowest of the year actually. This time next year will be a great reality check for the economy and real estate market

Chart of Twin Cities and Closest County Stats:

County Closed Sales '10 2010 vs 2009 Median Prices '10 2010 vs 2009

Twin Cities 3,927 17.1% $169,800 11.0%

Anoka 401 22.3% $150,000 4.8%

Dakota 467 22.6% $173,300 8.3%

Hennepin 1,375 9.1% $185,000 14%

Ramsey 527 18.7% $152,000 23%

St. Croix, WI 101 40.3% $166,000 10.9%

Washington 331 49.8% $180,000 -2.3%

Blind Offers; Should You Take Them Seriously?

Ryan Bretzel (Keller Williams Integrity) — Wed, 28 Apr 2010 23:01:53 -0700

So yesterday I received an offer from an Agent and Buyer who had never seen the property! I know it can be commen for agents to see a home on behalf of a buyer who is out of down and coming in but this is a little unusual. The home has been on the market for 3 weeks and is actually priced pretty well.

The wanted to secure the offer by April 29th, of course the April 30th deadline was important to them. Would would you recommend to a seller? Should we have not even responded until they saw the property?

How is one to judge the value of a property without even seeing? I hope they do not have multiple offers out there on many properties.