Market Update • November 19, 2024

Post-Election, What’s Next for Real Estate?

by Luke DeLacey

Election years often bring a bit of uncertainty to the real estate market. Many buyers and sellers tend to take a “wait and see” approach, watching for potential changes before making major decisions. Now that the election is behind us, attention is shifting to the factors that will shape the market moving forward—most notably, interest rates and inventory levels.

Here’s what we’re keeping an eye on:

Interest Rates: If rates begin to drop, we could see a significant surge in buyer activity. Many would-be buyers are currently sitting on the sidelines, waiting for affordability to improve. Lower rates could unlock the door to homeownership for this group.

Inventory Challenges: The low number of available homes continues to put upward pressure on prices. Even with pent-up demand, affordability will remain a challenge if inventory doesn’t increase to meet it.

Affordability: These two factors—rates and inventory—will dictate affordability. If they align favorably, the market could experience a renewed wave of activity.

Buying Tip • Selling Tip • September 23, 2024

Large storm over your new home? What are my rights?

by Luke DeLacey

If a storm rolls through while under contract for a home, it’s important to make sure there is no damage to the house before closing.

If damage does occur, it is typically the responsibility of the seller to bring the house back into the same condition it was at the time you wrote the offer.

If the seller neglects to make the necessary repairs, you would typically have an escape from the purchase agreement.

As agents who work with buyers, we are proactive in having qualified contractors inspect for damage if we suspect a storm had the potential to cause some damage.

Market Update • September 23, 2024

Could we see our first rate cut? September’s Update

by Luke DeLacey

It looks like we may soon see our first rate cut from the Federal Reserve since 2020. In an effort to combat inflation, the Fed has been steadily raising the federal funds rate, which caused mortgage interest rates to rise as well. We’ve seen mortgage rates climb from the high 2% range all the way up to 8%.

In August, economic indicators showed signs that the Federal Reserve had been looking for, and they hinted at a potential rate cut in September. In anticipation of this, mortgage interest rates have been steadily declining and are now at their lowest point since February 2023. Currently, mortgage rates are in the low 6% range.

What does this mean for home buyers and sellers?

Buyers will likely benefit from increased purchasing power. As a result, sellers may see more interest in their homes. Many buyers have been waiting for rates to come down, so as they continue to drop, we could see a surge in market activity.

Buying Tip • September 23, 2024

Low appraisal? Now what?

by Luke DeLacey

If you are financing the home you buy, the bank will order an appraisal of the property to make sure they are not lending more money on the property than what it is worth. If your appraisal comes back for less than the purchase price, here are some steps you can take:

– Re-negotiate the price with the seller

– Review the appraisal report to see if there are any errors

– Ask for a new appraisal

– Bring the difference between the appraised value and purchase price in cash to closing

You may also have the option of walking away from the purchase if a solution can not be reached.

For guidance on your home purchase, reach out!

Selling Tip • September 10, 2024

Worried about a home inspection?

by Luke DeLacey

As part of the selling process, a buyer often requests to do a home inspection. Here are some tips to make a home inspection go smoothly:

Clean and Declutter – Make sure all areas, including the basement and attic, are accessible.

Provide Access – Ensure that keys to any locked areas are available.

Check Utilities – Verify that all utilities are on, including pilot lights for gas appliances.

Replace Filters – Clean or replace HVAC filters and check for any minor repairs needed.

Documentation – Gather any service records or warranties for the home’s major systems.

These steps can help streamline the inspection process. Please let me know if you have any questions or need further assistance.

Selling Tip • September 5, 2024

Navigating the inspection period

by Luke DeLacey

Once you have an accepted offer, the inspection period starts. The length of the inspection period is negotiated as part of the offer. The inspection period typically begins immediately after the offer is accepted.

We always recommend hiring a professional inspector to go through the home. They will do a comprehensive inspection looking for any issues that may exist. Once the inspection is completed, the inspector will do a walkthrough with you letting you know what they found. They will also send you a report outlining their findings.

As part of the inspection period, you can ask the seller to address certain issues revealed during the inspection. If there is an item that is a “deal-breaker” for you, and the seller is not willing to address the issue, you would have the ability to cancel the purchase agreement.

Feel free to reach out with any questions!

First Time Home Buying • September 3, 2024

The Rights of a Homebuyer

by Luke DeLacey

As a new homebuyer, it’s important to be aware of your rights. There are federal and state laws in place that protect homebuyers from unfair treatment and misleading information when applying for a loan. The following information is from The office of Minnesota Attorney General Keith Ellison, click here to visit the source.

Equal Credit Opportunity Act

This is a federal law that the prohibits lenders from discriminating against the borrower for reasons related to race, color, religion, national origin, sex, marital status, age or status in relation to public assistance.

Minnesota Human Rights Act

This is a state specific law that is similar to the Equal Credit Opportunity Act. It prohibits discrimination by lenders, sellers, or real estate agents in the sale of financing of property due to race, color, creed (personal beliefs), religion, national origin, sex, marital status, status in relation to public assistance, disability, sexual orientation or familial status.

Real Estate Settlement Procedures Act (RESPA)

This is a federal law that regulates a lender’s closing or settlement practices. It requires that lenders make disclosures and treat you fairly by:

Giving you a copy of the Consumer Financial Protection Bureau’s booklet, “Your Home Loan Toolkit,” within three days after you apply for a loan.
Giving you a Loan Estimate of the closing (or “settlement”) costs within three days after you apply for a loan.
Itemizing all loan closing charges on a Settlement Statement, also known as the Closing Disclosure. This law also gives you the right to inspect these forms before the closing on your home. To exercise this important, but often overlooked right, ask your closing agent or lender for a copy of the form sooner, if it’s prepared.
Prohibiting lenders and agents from receiving hidden kickbacks or referral fees for referring customers to anyone for any transaction involving a federally related mortgage loan.
Restricting the amount of money a lender can ask you to put in escrow.

Loan Transfers

If your lenders transfers the servicing of your loan to another lender, they are required to give you at least a 15-day notice before completing the transfer.

The notice must include the transfer date; the name, address and phone number of the new servicer; and the name of an individual or department of the new servicer that you can call.

During a 60-day period after the transfer date, you may not be charged a late fee if you accidentally send [timely] payments to the original lender instead of the new lender whom the servicing of your loan has been transferred to.

Closing Disclosure

This is a disclosure your lender is required to provide to you that insures you are informed of all the fees and costs of the loan. The lender must provide the closing disclosure 3 business days before the closing date.

Fair Credit Reporting Act

There are three large national credit bureaus that keep credit reports on you. These reports include a lot of financial data about you, and is a vital component of how lenders determine your eligibility for a loan. Due to its significance and because many people have found errors in their reports, this act gives you the right to challenge the accuracy of the information in your credit report.

Selling Tip • September 3, 2024

To do, or not to do, the project

by Luke DeLacey

As you prepare to sell your home, you might be wondering whether taking on certain projects could increase its value and appeal to potential buyers. Here are a few considerations:

Curb Appeal – Simple landscaping and a fresh coat of paint can make a great first impression.

Minor Repairs – Fixing any obvious issues, like leaky faucets or broken tiles, can reassure buyers about the home’s condition.

Kitchen and Bathroom Updates – These areas often provide the best return on investment, even with minor updates like new fixtures or modern hardware.

Ultimately, the decision depends on your budget, timeline, and the current state of the market. I’m here to offer guidance and help you determine which projects might be most beneficial for your situation.

Feel free to reach out if you have any questions or would like to discuss this further.

Selling Tip • September 1, 2024

Multiple Offers? How to get yours to stand out

by Luke DeLacey

In some areas, homes are selling quickly with multiple people submitting offers. Here are a few ideas on how you can make your offer stand out:

– Offer more than the competition

– Use an escalation clause stating you will beat any offer by a certain dollar amount up to a set limit

– Communicate how you plan to utilize the inspection period

– Close when most convenient for the seller

– Commit to bringing more money to closing in the case of a low appraisal

Although it’s important to submit a competitive offer in the case of multiple offers, make sure you are comfortable with whatever offer you end up submitting.

We are excited to help you with your home search!

Selling Tip • August 27, 2024

Putting on the Perfect Showing

by Luke DeLacey

As you prepare for potential buyers to visit, here are a few tips to ensure your home makes the best impression during showings:

Clean and Tidy – Ensure your home is spotless and clutter-free.

Light and Bright – Open curtains and turn on all lights to create a welcoming atmosphere.

Neutralize – Remove personal items and keep decor simple to help buyers envision themselves in the space.

Temperature – Set a comfortable temperature to make the home inviting.

Ambiance – Consider soft background music and a pleasant scent.

These small steps can make a big difference. If you have any questions or need assistance, please let me know.