The Real Estate Ranger's Blog

SW Rochester MN Local Real Estate Market Statistics

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Fri, 11 Mar 2011 11:09:22 -0800

SW Rochester MN Local Real Estate Market Statistics for February 2011:

Summary Statistics
	Feb-11	Feb-10	% Chg	2011 YTD	2010 YTD	% Chg
Absorption Rate	8.35	8.86	-5.76	7.98	8.23	-3.04
Average List Price	$326,336	$314,499	3.76	$304,439	$311,632	-2.31
Median List Price	$259,900	$265,000	-1.92	$239,900	$259,000	-7.37
Average Sale Price	$236,452	$233,629	1.21	$224,680	$241,981	-7.15
Median Sale Price	$204,950	$214,750	-4.56	$193,000	$222,000	-13.06
Average DOM	201	161	24.84	203	148	37.16
Median DOM	179	162	10.49	172	133	29.32

SW Rochester MN Real Estate Market Statistics are getting better overall. SW Rochester MNhas always claimed a higher price per sqft than most other areas of Rochester MN. Even though the inventory is a bit high at eight months it has decreased from last year by 5.75%. Less inventory means less choices for buyers and less competition for sellers. Already seller have on average raised thier prices from last year and are now starting to see a small increase of average sale prices. Hopefully this stays the course but the average days that the inventory of homes on the market has also increased by almost 25%. This is probably due to price increase. Looking at the big picture compared to the rest of the Rochester MN and surrounding markets SW Rochester home prices have not falled as much nor will they climb as quickly due to the combination of price and demand for these homes.

If you would like more information about SW Rochester MN Real Estate contact Dan Kingsley, The Real Estate Ranger, at 507-990-1721 or www.TheRealEstateRanger.com.

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SE Rochester MN Local Real Estate Market Statistics

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Fri, 11 Mar 2011 10:51:49 -0800

SE Rochester MN Real Estate Market Statistics for February 2001:

Summary Statistics
	Feb-11	Feb-10	% Chg	2011 YTD	2010 YTD	% Chg
Absorption Rate	8.85	6.34	39.59	8.65	5.98	44.65
Average List Price	$131,803	$136,954	-3.76	$128,901	$133,714	-3.60
Median List Price	$115,000	$124,850	-7.89	$117,900	$122,900	-4.07
Average Sale Price	$87,364	$109,144	-19.96	$90,495	$102,874	-12.03
Median Sale Price	$56,000	$102,000	-45.10	$70,000	$104,000	-32.69
Average DOM	70	141	-50.35	105	123	-14.63
Median DOM	68	40	70.00	85	51	66.67

SE Rochester MN Real Estate continue to decline. Both listing and sale prices have continued to lower from last year, but the average days on the market have been reduced by 50% which means last year listing prices were too high for the market and by sellers reducing prices to the real estate market demand level, making houses are selling twice as fast.

If you have more questions about SE Rochester MN Real Estate contact Dan Kingsley, The Real Estate Ranger, at 507-990-1721 or www.TheRealEstateRanger.com.

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NW Rochester MN Local Real Estate Market Statistics

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Fri, 11 Mar 2011 10:31:04 -0800

NW Rochester MN Real Estate Market Statistics for February 2011

Summary Statistics
	Feb-11	Feb-10	% Chg	2011 YTD	2010 YTD	% Chg
Absorption Rate	6.34	6.73	-5.79	6.15	6.31	-2.54
Average List Price	$164,234	$178,149	-7.81	$162,176	$175,018	-7.34
Median List Price	$149,900	$159,900	-6.25	$149,900	$159,900	-6.25
Average Sale Price	$161,464	$145,499	10.97	$156,587	$153,036	2.32
Median Sale Price	$154,500	$145,000	6.55	$139,000	$147,450	-5.73
Average DOM	138	156	-11.54	137	142	-3.52
Median DOM	96	77	24.68	96	93	3.23

NW Rochester MN Real Estate Market is showing good signs of recovery! Average Sale price is 2% higher than last year meaning sellers are getting better prices for their homes than they were at this time last year. This is also because people who are selling thier homes are listing them for 7% less than they did last year. This proves that by listing closer to the market price you can yield a higher sale price for your home. The higher homes are listed above the market value the longer they stay on the market and the less price they sell for. This is proved by the average days on the market is also down by 3.5% from last year and the inventory for homes is less than 7 months.

If you would like more information about your market statistics or homes sales in NW Rochester MN contact Dan Kingsley, The Real Estate Ranger, at 507-990-1721 or www.TheRealEstateRanger.com.

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NE Rochester MN Local Real Estate Market Statistics

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Fri, 11 Mar 2011 10:03:51 -0800

Here are NE Rochester MN 2011 Monthly Statistics for February:

Summary Statistics
	Feb-11	Feb-10	% Chg	2011 YTD	2010 YTD	% Chg
Absorption Rate	6.82	7.45	-8.46	6.96	7.13	-2.38
Average List Price	$240,158	$243,530	-1.38	$230,573	$235,560	-2.12
Median List Price	$199,900	$199,900	0.00	$179,850	$193,200	-6.91
Average Sale Price	$148,477	$188,300	-21.15	$150,364	$181,461	-17.14
Median Sale Price	$117,800	$177,000	-33.45	$121,400	$172,250	-29.52
Average DOM	183	138	32.61	151	155	-2.58
Median DOM	94	121	-22.31	89	121	-26.45

Overall we still see a drop in average and median prices of homes in the NE Rochester MN market. The good news is the inventory is being sold faster than it is comming on the market which is necessary for the the stability of the market. Also the Days that homes are on the Market is less. This means that when homes are hitting the market they are also selling in less time than the did last year. These are good signs that we are on the mend and we have already hit the bottom.

For more info about your specific market contact Dan Kingsley, The Real Estate Ranger, at 507-990-1721 or www.TheRealEstateRanger.com.

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12 Tips for Hiring a Remodeling Contractor

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Mon, 07 Mar 2011 10:37:37 -0800

12 Tips for Hiring a Remodeling Contractor

1. Get at least three written estimates.

2. Get references and call to check on the work. If possible, go by and visit earlier jobs.

3. Check with the local Chamber of Commerce or Better Business Bureau for complaints.

4. Be sure that the contract states exactly what is to be done and how change orders will be handled.

5. Make as small a downpayment as possible so you won't lose a lot if the contractor fails to complete the job.

6. Be sure that the contractor has the necessary permits, licenses, and insurance.

7. Be sure that the contract states when the work will be completed and what recourse you have if it isn't. Also remember that in many instances you can cancel a contract within three business days of signing it.

8. Ask if the contractor's workers will do the entire job or whether subcontractors will do parts.

9. Get the contractor to indemnify you if work does not meet local building codes or regulations.

10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.

11. Guarantee that materials used meet your specifications.

12. Don't make the final payment until you're satisfied with the work.

If you would like more infor about Rochester MN Real Estate contact Dan Kingsley, The Real Estate Ranger, at 507-990-1721 or Dan@TheRealEstateRanger.com.

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Understanding Capital Gains in Real Estate

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Mon, 07 Mar 2011 10:30:57 -0800

Understanding Capital Gains in Real Estate

When you sell a stock, you owe taxes on your gain-the difference between what you paid for the stock and what you sold it for. The same is true with selling a home (or a second home), but there are some special considerations.

How to Calculate Gain

In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate this:

1. Take the purchase price of the home: This is the sale price, not the amount of money you actually contributed at closing.

2. Add adjustments:

􀂃 Cost of the purchase-including transfer fees, attorney fees, inspections, but not points you paid on your mortgage.

􀂃 Cost of sale-including inspections, attorney's fee, real estate commission, and money you spent to fix up your home just prior to sale.

􀂃 Cost of improvements-including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.

3. The total of this is the adjusted cost basis of your home.

4. Subtract this adjusted cost basis from the amount you sell your home for. This is your capital gain.

A Special Real Estate Exemption for Capital Gains

Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:

􀂃 You have lived in the home as your principal residence for two out of the last five years.

􀂃 You have not sold or exchanged another home during the two years preceding the sale.

Also note that as of 2003, you also may qualify for this exemption if you meet what the IRS calls "unforeseen circumstances," such as job loss, divorce, or family medical emergency.

If you would like more information on Capital Gains on Real Estate contact Dan Kingsley, The Real Estate Ranger, at 507-990-1721 or Dan@TheRealEstateRanger.com.

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20 Low-Cost Ways to Spruce Up Your Home

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Mon, 07 Mar 2011 10:15:04 -0800

20 Low-Cost Ways to Spruce Up Your Home

Make your home more appealing for potential buyers with these quick and easy tips.

1. Trim bushes so they don't block windows and cut down on light.

2. Buy a new doormat.

3. Put a pot of bright flowers (or a small evergreen in winter) on your porch.

4. Put new doorknobs on your doors.

5. Put a fresh coating on your driveway.

6. Edge the grass around walks and trees.

7. Keep your garden tools out of site.

8. Be sure kids put away their toys.

9. Buy a new mailbox.

10. Upgrade the outside lighting.

11. Use warm, incandescent light bulbs for a homey feel.

12. Polish or replace your house numbers.

13. Clean your gutters.

14. Put out potpourri or burn scented candles.

15. Buy new pillows for the sofa.

16. Buy a flowering plant and put it in a window you pass by frequently.

17. Make a centerpiece for your table with fruit or artificial flowers.

18. Replace heavy curtains with sheer ones that let in more light.

19. Buy new towels.

20. Put a seasonal wreath on your door.

If you would like more helpful hints about getting your home sold contact Dan Kingsley, The Real Estate Ranger, at 507-990-1721 or Dan@TheRealEstateRanger.com .

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Moving Tips for Home Sellers

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Mon, 07 Mar 2011 10:09:46 -0800

Moving Tips for Home Sellers

1. Give your forwarding address to the post office, usually two to four weeks ahead of the move.

2. Notify your credit card companies, magazine subscriptions, and bank of the change of address.

3. Develop a list of friends, relatives, and business colleagues who need to be notified of the move.

4. Arrange to have utilities disconnected at your old home and connected at your new one.

5. Cancel the newspaper.

6. Check insurance coverage for moved items. Usually movers only cover what they pack.

7. Clean out appliances and prepare them for moving, if applicable.

8. Note the weight of the goods you'll have moved, since long-distance moves are usually billed according to weight. Watch for movers that use excessive padding to add weight.

9. Check with your condo or co-op about restrictions on using the elevator or particular exits.

10. Have a "first open" box with the things you'll need most-toilet paper, soap, trash bags, scissors, hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and toothpaste.

Plus, if you're moving out of town:

1. Get copies of medical and dental records and prescriptions for your family and your pets.

2. Get copies of children's school records for transfer.

3. Ask friends for introductions to anyone they know in your new neighborhood.

4. Consider special car needs for pets when traveling.

5. Let a friend or relative know your route.

6. Carry traveler's checks or an ATM card for ready cash until you can open a bank account.

7. Empty your safety deposit box.

8. Put plants in boxes with holes for air circulation if you're moving in cold weather.

6 Items to Have on Hand for the New Owners

1. Owner's manuals for items left in the house.

2. Warranties for any items left in the house.

3. A list of local service providers-the best dry cleaner, yard service, etc.

4. Garage door opener.

5. Extra sets of house keys.

6. Code to burglar alarm and phone number of monitoring service if not discontinued.

If you would like more information like this or have any question about selling or buy a home contact Dan Kingsley 507-990-1721, The Real Estate Ranger.

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What You Net When Closing on a House

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Fri, 04 Mar 2011 15:14:30 -0800

What You Net When Closing on a House

To find out how much money you'll net from your house, add up your closing costs and subtract them from the sale price of the house.

Closing Costs for Sellers:

Mortgage Payoff and outstanding Interest
Prorations for MN real estate taxes
Proration for utility bills, condo dues, and other items paid in arrears
Closing Fees charged by closing specialist
Title Policy Fee
Home Inspection
Attorney's Fees
Survey Charge
Transfer tax or other government registration fees
Brokerage commission

For an excel spreedsheet that will auto-calculate these for you contact Dan Kingsley, The Real Estate Ranger, 507-990-1721.

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Things to Know about about Real Estate Purchase Agreements

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Fri, 04 Mar 2011 15:00:08 -0800

Things to Know about about Real Estate Purchase Agreements

1. The closing date. See if the date the buyer wants to take title is reasonable for you.

2. Date of possession. See if the date the buyer wants to move in is reasonable for you.

3. The earnest money. Look for the largest earnest-money deposit possible; since it is forfeited if the buyer backs out, a large deposit is usually a good indication of a sincere buyer.

4. Fixtures and personal property. Check the list of items that the buyer expects to remain with the property and be sure it's acceptable.

5. Repairs. Determine what the requested repairs will cost and whether you're willing to do the work or would rather lower the price by that amount.

6. Contingencies. See what other factors the buyer wants met before the contract is final-inspections, selling a home, obtaining a mortgage, review of the contract by an attorney. Set time limits on contingencies so that they won't drag on and keep your sale from becoming final.

7. The contract expiration date. See how long you have to make a decision on the offer.

The Real Estate Ranger will explain this all other parts of listing, selling, buying and negotiating Real Estate Sale. Dan Kingsley is South Eastern MN Real Estate Expert and is willing to Guide You On Your Next Real Estate Mission!

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5 Ways to Speed Up Your Sale

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Mon, 28 Feb 2011 17:08:00 -0800

5 Ways to Speed Up Your Sale

Understand these are 5 general ways to speed up your sale. If you have worked with a full-time professional Realtor and together you have analyzed your best course of action for your specific situation this information may not be applicable. Your agent is your best source of real estate information.

1. Price it right. Set a price at the lower end of your property's realistic price range.

2. Get your house market-ready for at least two weeks before you begin showing it.

3. Be flexible about showings. It's often disruptive to have a house ready to show on the spur of the moment, but the more often someone can see your home, the sooner you'll find a seller.

4. Be ready for the offers. Decide in advance what price and terms you'll find acceptable.

5. Don't refuse to drop the price. If your home has been on the market for more than 30 days without an offer, be prepared to lower your asking price.

If you would like more information like this or have other questions about selling your home contact Dan Kingsley, The Real Estate Ranger, at 507-990-1721

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10 Ways to Make Your House More Salable

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Mon, 28 Feb 2011 16:55:57 -0800

10 Ways to Make Your House More Salable

1. Get rid of clutter. Throw out or file stacks of newspapers and magazines. Pack away most of your small decorative items. Store out-of-season clothing to make closets seem roomier. Clean out the garage.

2. Wash your windows and screens to let more light into the interior.

3. Keep everything extra clean. Wash fingerprints from light switch plates. Mop and wax floors. Clean the stove and refrigerator. A clean house makes a better first impression and convinces buyers that the home has been well cared for.

4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows.

5. Put higher wattage bulbs in light sockets to make rooms seem brighter, especially basements and other dark rooms. Replace any burnt-out bulbs.

6. Make minor repairs that can create a bad impression. Small problems, such as sticky doors, torn screens, cracked caulking, or a dripping faucet, may seem trivial, but they'll give buyers the impression that the house isn't well maintained.

7. Tidy your yard. Cut the grass, rake the leaves, trim the bushes, and edge the walks. Put a pot or two of bright flowers near the entryway.

8. Patch holes in your driveway and reapply sealant, if applicable.

9. Clean your gutters.

10. Polish your front doorknob and door numbers.

These are just a few ways to make your house more salable. If you would like more information about Selling your Home contact Dan Kingsley at 507-990-1721, The Real Estate Ranger.

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4 Things to Do Before You Sell

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Mon, 28 Feb 2011 09:11:35 -0800

4Things to Do Before You Sell

1. Get estimates from a reliable repairperson on items that need to be replaced soon, such as a roof or worn carpeting, for example. In this way, buyers will have a better sense of how much these needed repairs will affect their costs.

2. Get a pre-sale home inspection so you'll be able to make repairs before buyers become concerned and cancel a contract.

3. Gather together warranties/guarantees and manuals on the furnace, appliances, and other items that will remain with the house.

4. Fill out a disclosure form provided by your sales associate. Take the time to be sure that you don't forget problems, however minor, that might create liability for you after the sale.

If you would like more information about what you need to do call the Real Estate Expert, Dan Kingsley, The Real Estate Ranger.

Guiding You on Your Next Real Estate Mission!

Understanding Agency

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Mon, 28 Feb 2011 09:02:58 -0800

Understanding Agency

It's important to understand what legal responsibilities your real estate salesperson has to you and to other parties in the transactions. Ask your salesperson to explain what type of agency relationship you have with him or her and with the brokerage company.

1. Seller's representative (also known as a listing agent or seller's agent). A seller's agent is hired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract.

2. Subagent. A subagent owes the same fiduciary duties to the agent's principal as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not representing the buyer as a buyer's representative or operating in a nonagency relationship, shows property to a buyer. In such a case, the subagent works with the buyer as a customer but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer-customer can expect to be treated honestly by the subagent. It is important that subagents fully explain their duties to buyers.

3. Buyer's representative (also known as a buyer's agent). A real estate licensee who is hired by prospective buyers to represent them in a real estate transaction. The buyer's rep works in the buyer's best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer's rep may be paid by the seller or by a commission split with the listing broker.

4. Disclosed dual agent. Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to the clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it's vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them, is legal in most states.

5. Designated agent (also called, among other things, appointed agency). This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.

6. Nonagency relationship (called, among other things, a transaction broker or facilitator). Some states permit a real estate licensee to have a type of nonagency relationship with a consumer. These relationships vary considerably from state to state, both as to the duties owed to the consumer and the name used to describe them. Very generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary

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Buying or Selling a House: Tips for Packing Like a Pro

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Thu, 24 Feb 2011 09:02:16 -0800

Buying or Selling a House: Tips for Packing Like a Pro

1. Develop a master "to do" list so you won't forget something critical.

2. Sort and get rid of things you no longer want or need. Have a garage sale, donate to a charity, or recycle.

3. Don't throw out everything. If your inclination is to just toss it, ask yourself how frequently you use an item and how you'd feel if you no longer had it.

4. Pack like items together. Put toys with toys, kitchen utensils with kitchen utensils.

5. Decide what if anything you plan to move yourself. Precious items, such as family photos, valuable breakables, or must-haves during the move, should probably stay with you.

6. Use the right box for the item. Loose items encourage breakage.

7. Put heavy items in small boxes so they're easier to lift. Keep weight under 50 lbs. if possible.

8. Don't over-pack boxes and increase the chances they will break.

9. Wrap every fragile item separately and pad bottom and sides of boxes.

10. Label every box on all sides. You never know how they'll be stacked and you don't want to have to move other boxes aside to find out what's there.

11. Use color-coded labels to indicate which room each item should go in. Color-code a floor plan for your new house to help movers.

12. Keep your moving documents together, including phone numbers, driver's name, and van number. Also keep your address book handy.

13. Back up your computer files before moving your computer.

14. Inspect each box and all furniture for damage as soon as it arrives.

15. Remember, most movers won't take plants

If you sell or buy a home with me, The Real Estate Ranger, you can use my moving truck! Just another way of giving you what you need to make your next real estate mission easier.

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What Could Keep You From Your Closing

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Wed, 23 Feb 2011 09:25:52 -0800

What Could Keep You From Your Closing

􀂃 The Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 statement, itemizes all the costs associated with the closing. You'll need this for income tax purposes and when you sell the home.

􀂃 The Truth in Lending Statement summarizes the terms of your mortgage loan.

􀂃 The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.

􀂃 The deed transfers ownership of the property to you.

􀂃 Affidavits swearing to various statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens on the property.

􀂃 Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association's rules and restrictions.

􀂃 Insurance policies provide a record and proof of your coverage.

If you have questions about this, the Home Buying Process or Home Selling Process contact Dan Kingsley, The Real Estate Ranger.

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Common Closing Costs for Buyers

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Wed, 23 Feb 2011 09:19:52 -0800

Common Closing Costs for Buyers

The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier's check. The title company or other entity conducting the closing will tell you the required amount for:

􀂃 Downpayment

􀂃 Loan origination fees

􀂃 Points, or loan discount fees, you pay to receive a lower interest rate

􀂃 Appraisal fee

􀂃 Credit report

􀂃 Private mortgage insurance premium

􀂃 Insurance escrow for homeowners insurance, if being paid as part of the mortgage

􀂃 Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.

􀂃 Deed recording fees

􀂃 Title insurance policy premiums

􀂃 Survey

􀂃 Inspection fees-building inspection, termites, etc.

􀂃 Notary fees

􀂃 Prorations for your share of costs, such as utility bills and property taxes

A Note About Prorations

: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end of the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsable for the days of his or her ownership.

If you have any questions about the home buying or selling process contact me, Dan Kingsley, The Real Estate Ranger, I would really like to help you out.

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What Not to Overlook on a Final Walk-through

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Wed, 23 Feb 2011 09:09:48 -0800

What Not to Overlook on a Final Walk-through

Be sure that:

􀂃 Repairs you've requested have been made. Obtain copies of paid bills and any related warranties.

􀂃 All items that were included in the sale price-draperies, lighting fixtures-are still there.

􀂃 Screens and storm windows are in place or stored.

􀂃 All appliances are operating.

􀂃 Intercom, doorbell, and alarm are operational.

􀂃 Hot water heater is working.

􀂃 HVAC is working.

􀂃 No plants or shrubs have been removed from the yard.

􀂃 Garage door opener and other remotes are available.

􀂃 Instruction books and warranties on appliances and fixtures are there.

􀂃 All personal items of the sellers and all debris have been removed.

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5 Things to Understand About Title Insurance

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Mon, 21 Feb 2011 15:30:03 -0800

5 Things to Understand About Title Insurance

1. It protects your ownership right to your home both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person's name or an inaccurate description of the property.

2. It's a one-time cost usually based on the price of the property.

3. It's usually paid for by the sellers.

4. There are both lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.

5. Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. Ask the title company if this discount is available.

If you would like more info about this or have any questions about the home buying process please contact me at www.TheRealEstateRanger.com

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10 Ways to Lower Your Homeowners Insurance Costs

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Mon, 21 Feb 2011 14:33:04 -0800

10 Ways to Lower Your Homeowners Insurance Costs

1. Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower.

2. Buy your homeowners and auto policies from the same company. You'll usually qualify for a discount. But make sure that the savings really yields the lowest price.

3. Make your home less susceptible to damage. Keep roofs and drains in good repair. Retrofit your house to protect against natural disasters common to your area.

4. Keep your home safer. Install smoke detectors, burglar alarms, and dead-bolt locks. All of these will usually qualify for a discount.

5. Be sure you insure your house for the correct amount. Remember, you're covering replacement cost, not market value.

6. Ask about other discounts. For example, retirees who are home more than working people may qualify for a discount on theft insurance.

7. Stay with the same insurer. Especially in today's tight insurance market, your current vendor is more likely to give you a good price.

8. See if you belong to any groups-associations, alumni groups-that offer lower insurance rates.

9. Review your policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage.

10. See if there's a government-backed insurance plan. In some high-risk areas, such as the coasts, federal or state governments may back plans to lower rates. Ask your agent.

If you would like more information like this or have any questions about this or the Home buying process please contact Dan Kingsley, The Real Estate Ranger.

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5 Things to Understand About Homeowners Insurance

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Mon, 21 Feb 2011 14:11:00 -0800

5 Things to Understand About Homeowners Insurance

1. Look for exclusions to coverage. For example, most insurance policies do not cover flood or earthquake damage as a standard item. These coverages must be bought separately.

2. Look for dollar limitations on claims. Even if you are covered for a risk, there may a limit on how much the insurer will pay. For example, many policies limit the amount paid for stolen jewelry unless items are insured separately.

3. Understand replacement cost. If your home is destroyed you'll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient. This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you'll only receive $150,000.

4. Understand actual cash value. If you choose not to replace your home when it's destroyed, you'll receive replacement cost, less depreciation. This is called actual cash value.

5. Understand liability. Generally your homeowners insurance covers you for accidents that happen to other people on your property, including medical care, court costs, and awards by the court. However, there is usually an upper limit to the amount of coverage provided. Be sure that it's sufficient if you have significant assets.

If you have more questions about this or about the Home Buying Process contact Dan Kingsley, The Real Estate Ranger.

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10 Questions to Ask Your Condo Board

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Mon, 21 Feb 2011 14:01:43 -0800

10 Questions to Ask Your Condo Board

Before you buy, contact the condo board with the following questions. In the process, you'll learn how responsive-and organized-its members are.

1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.

2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date can't rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them. And have an attorney review property docs, including the master deed, for you.

3. How much does the association keep in reserve? How is that money being invested?

4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.

5. What does and doesn't the assessment cover-common area maintenance, recreational facilities, trash collection, snow removal?

6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board's fiscal policy.

7. How much turnover occurs in the building?

8. Is the project in litigation? If the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly.

9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer's report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks aren't in good repair, they become your problem once you buy.

10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you're buying, may require separate assessments.

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Choices That Will Affect Your Loan

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Thu, 17 Feb 2011 10:32:33 -0800

Choices That Will Affect Your Loan:

Mortgage term. Mortgages are generally available at 15-, 20-, or 30-year terms. The longer the term, the lower the monthly payment if the same amount is borrowed. However, you pay more interest overall if you borrow for a longer term.. A fixed rate allows you to lock in a low rate for as long as you hold the mortgage and is usually a good choice if interest rates are low. An adjustable-rate mortgage (ARM) is designed so that interest rates will rise as interest rates increase; however they usually offer a lower rate in the first years of the mortgage. ARMs also usually have a limit as to how much the interest rate can be increased and how frequently they can be raised. ARMs are a good choice when interest rates are high or when you expect your income to grow significantly in the coming years.
Fixed or adjustable interest rates
Balloon mortgages. Balloon mortgages offer very low interest rates for a short period of time-often three to seven years. Payments usually cover only the interest, so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.
Government-backed loans. Government-backed loans, sponsored by agencies such as the Federal Housing Administration (www.fha.gov) or the U.S. Department of Veterans Affairs (www.va.gov), offer special terms, including lower downpayments or reduced interest rates-to qualified buyers.

Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. For help in determining how much your monthly payment will be for various loan amounts, use Fannie Mae's online mortgage calculators at http://www.fanniemae.com/homebuyers/calculators/index.jhtml?p=Resources&s=Calculators

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6 Creative Ways to Afford a Home

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Thu, 17 Feb 2011 10:20:09 -0800

6 Creative Ways to Afford a Home

If your income and savings are making homebuying a challenge, consider these options.

1. Investigate local, state, and national downpayment assistance programs. These programs give loans or grants to cover all or part of your required downpayment. National programs include the Nehemiah program (http://www.getdownpayment.com) and the American Dream Downpayment Fund from the U.S. Department of Housing and Urban Development (http://www.hud.gov).

2. Get the seller to provide financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you do a mortgage.

3. Consider a shared-appreciation, or shared equity, arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and thus share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and all maintenance costs, but all investors' names are usually on the mortgage. There are companies that can help you find such an investor if your family can't participate.

4. Get help from your family. Perhaps a family member will loan you money for the downpayment and/or act as a cosigner for the mortgage. Lenders often like to have a cosigner if you have little credit history

5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your downpayment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.

6. See if you can qualify for a short-term second mortgage to give you the money to make a higher downpayment. This may be possible if you have a good income and little other debt.

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10 Things a Lender Needs From You

Dan Kingsley, Rochester MN ePRO,CDPE-RANGER (Counselor Realty of Rochester) — Thu, 17 Feb 2011 10:05:44 -0800

10 Things a Lender Needs From You

1. W-2 forms or business tax return forms if you're self-employed for the last two or three years for every person signing the loan.

2. Copies of one or more months of pay stubs from every person signing the loan.

3. Copies of two to four months of bank or credit union statements for both checking and savings accounts.

4. Copies of personal tax forms for the last two to three years.

5. Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, e.g., a boat, RV, or stocks or bonds not held in a brokerage account.

6. Copies of your most recent 401(k) or other retirement account statement.

7. Documentation to verify additional income, such as child support, pension, etc.

8. Account numbers of all your credit cards and the amounts of any outstanding balances.

9. Lender, loan number, and amount owed on other installment loans-student loans, car loans, etc.

10. Addresses where you lived for the last five to seven years, with names of landlords, if appropriate.

If you have anymore questions in the home buying process please contact me (Dan Kingsley) The Real Estate Ranger.

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