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Buying Tip • March 13, 2024

For Your Protection, Get a Home Inspection

by Luke DeLacey

Home inspections at a minimum can provide peace of mind or even possibly allow you to negotiate with the seller to have certain repairs completed.

The ability to have a home inspection completed is negotiated as part of your offer. You can indicate in your offer that you wish to do an inspection and whether the offer is contingent on your home inspection. A time frame is set in which you agree to have your home inspection completed along with negotiating any repairs if needed.

You can use anyone to conduct your home inspection but it’s recommended that you use a qualified professional that does home inspections full time. Professional home inspectors will use exhaustive checklists to make sure every part of the home that is accessible is inspected. The cost of an inspection usually starts around $500 but can go up from there depending on what other services you wish the home inspector to complete.

After your inspection, the inspector will walk through the house with you and put together a report. Inspectors will find problems with every house, however, it’s up to you if the problems found are deal breakers or not.

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Buying Tip Large storm over your new home? What are my rights? 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. […]
Buying Tip Low appraisal? Now what? 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 […]
Buying Tip What you Need to Submit an Offer Do you see a home that you would like to submit an offer on? Here is what you need to submit an offer: – Purchase agreement – A pre-approval letter or proof of funds – Earnest money deposit – Down-payment – A list of terms including the price Part of our job is writing and […]
Buying Tip • March 4, 2024

What is the First Step? Getting Pre-Approved or Meeting with an Agent?

by Luke DeLacey

What is the first step you should take when you’ve decided it’s time to purchase your first home?

Either meeting with a trusted mortgage lender or real estate agent is a great first step!

It’s important to align yourself with people you trust early on in the process. If you already know and trust a real estate agent, they can get you started by walking you through the process and referring you to a mortgage lender. Vice versa, if a mortgage lender is your first contact, they can refer you to a real estate agent they feel would be a good fit for you.

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Buying Tip Large storm over your new home? What are my rights? 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. […]
Buying Tip Low appraisal? Now what? 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 […]
Buying Tip What you Need to Submit an Offer Do you see a home that you would like to submit an offer on? Here is what you need to submit an offer: – Purchase agreement – A pre-approval letter or proof of funds – Earnest money deposit – Down-payment – A list of terms including the price Part of our job is writing and […]
Understanding Real Estate Vocabulary • March 4, 2024

What is Equity: Understanding Real Estate Vocabulary

by Luke DeLacey

Equity is the share of your home that you “own” (have paid off) versus what you still owe on your mortgage (and any other liens you might have).

For example, if your home is worth $330,000 and you have a remaining mortgage balance of $280,000, your home equity would be $50,000.

Your equity will increase as you continue to make your payments. As time goes on, more and more of your payment will go toward the principal balance increasing your equity more rapidly.

Market fluctuations can also impact your equity. Your equity will increase with appreciation but decrease with depreciation.

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Understanding Real Estate Vocabulary What is Encumbrance: Understanding Real Estate Vocabulary Encumbrance is a claim on a property. This could take form of a mortgage, an easement (right to the use of/access to land owned by another), or a lien (a claim to the property for payment of a debt). 
Understanding Real Estate Vocabulary What is a Short-Sale: Understanding Real Estate Vocabulary This is a transaction where the lender(s) agree to accept less money for the sale of the home than is still owed by the homeowner on the mortgage. Though a short-sale may be better than a foreclosure for both parties, the homeowner will still experience damage to their credit score and walk away without making […]
Understanding Real Estate Vocabulary What is a Contract-for-Deed: Understanding Real Estate Vocabulary This is a special type of real estate contract where the seller of the home acts as the loan lender too, providing funds for the buyer to purchase the property at the agreed price and repay it in installments. This can be a more common financing option for property transactions between family members and friends. 
Buying Tip • March 1, 2024

Down-Payments: The Facts and the Fiction

by Luke DeLacey

One of the biggest hurdles many first-time homebuyers face is coming up with a down payment. However, many don’t realize the many options available to them.

One of the biggest myths about down payments is that you need 20% of the purchase price. This is far from the truth. Here are some loan programs that allow less than 20%.

  • Conventional – as low as 3%
  • FHA – as low as 3.5%
  • Rural Development – as low as 0% but the location must qualify.
  • VA – as low as 0% but only available to veterans.

There are also a few down-payment assistance programs available that may cover some or all of your down payment. We can connect you with a lender to learn more about those or to find out if you’re eligible.

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Buying Tip Large storm over your new home? What are my rights? 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. […]
Buying Tip Low appraisal? Now what? 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 […]
Buying Tip What you Need to Submit an Offer Do you see a home that you would like to submit an offer on? Here is what you need to submit an offer: – Purchase agreement – A pre-approval letter or proof of funds – Earnest money deposit – Down-payment – A list of terms including the price Part of our job is writing and […]
Understanding Real Estate Vocabulary • February 27, 2024

What is Earnest Money: Understanding Real Estate Vocabulary

by Luke DeLacey

This is like making a down payment. An earnest money deposit shows that you are committed to buying that house. It is deposited within a few days of your offer being accepted. The earnest money is typically credited back to the buyer at closing. If the transaction doesn’t close, the earnest money may refunded to the buyer or retained by the seller depending on how the purchase agreement is written. Typically if the buyer decides to back out of the purchase agreement during the inspection period or is unable to obtain the financing outlined in the purchase agreement, the earnest money will be refunded to them. 

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Understanding Real Estate Vocabulary What is Encumbrance: Understanding Real Estate Vocabulary Encumbrance is a claim on a property. This could take form of a mortgage, an easement (right to the use of/access to land owned by another), or a lien (a claim to the property for payment of a debt). 
Understanding Real Estate Vocabulary What is a Short-Sale: Understanding Real Estate Vocabulary This is a transaction where the lender(s) agree to accept less money for the sale of the home than is still owed by the homeowner on the mortgage. Though a short-sale may be better than a foreclosure for both parties, the homeowner will still experience damage to their credit score and walk away without making […]
Understanding Real Estate Vocabulary What is a Contract-for-Deed: Understanding Real Estate Vocabulary This is a special type of real estate contract where the seller of the home acts as the loan lender too, providing funds for the buyer to purchase the property at the agreed price and repay it in installments. This can be a more common financing option for property transactions between family members and friends. 
Understanding Real Estate Vocabulary • February 27, 2024

What is a Mortgage: Understanding Real Estate Vocabulary

by Luke DeLacey

While you may be thinking, I know what a mortgage is, this is a silly term to be included, it’s probably one of the most used words in real estate so it’s good to revisit and burn into your brain.

A mortgage is a loan agreement between a lender and the home buyer (you), that lets you borrow money to purchase (or refinance) a home. This agreement gives the lender the right to take possession of your property if you fail to repay the money you’ve borrowed. There are many different rates for mortgages, and it’s smart to choose a lender that gives you the best interest rate.

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Understanding Real Estate Vocabulary What is Encumbrance: Understanding Real Estate Vocabulary Encumbrance is a claim on a property. This could take form of a mortgage, an easement (right to the use of/access to land owned by another), or a lien (a claim to the property for payment of a debt). 
Understanding Real Estate Vocabulary What is a Short-Sale: Understanding Real Estate Vocabulary This is a transaction where the lender(s) agree to accept less money for the sale of the home than is still owed by the homeowner on the mortgage. Though a short-sale may be better than a foreclosure for both parties, the homeowner will still experience damage to their credit score and walk away without making […]
Understanding Real Estate Vocabulary What is a Contract-for-Deed: Understanding Real Estate Vocabulary This is a special type of real estate contract where the seller of the home acts as the loan lender too, providing funds for the buyer to purchase the property at the agreed price and repay it in installments. This can be a more common financing option for property transactions between family members and friends. 
Home Tour • September 9, 2022

Cabin-style home in Maple Lake

by Luke DeLacey

 

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Home Tour 205 4th Ave S Buffalo, MN   View this post on Instagram A post shared by LUKE DELACEY | REALTOR® (@luke.therealtor)
Market Update Post-Election, What’s Next for Real Estate? 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 […]
Buying Tip Large storm over your new home? What are my rights? 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. […]
Home Tour • September 9, 2022

205 4th Ave S Buffalo, MN

by Luke DeLacey

 

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Home Tour Cabin-style home in Maple Lake   View this post on Instagram A post shared by LUKE DELACEY | REALTOR® (@luke.therealtor)
Market Update Post-Election, What’s Next for Real Estate? 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 […]
Buying Tip Large storm over your new home? What are my rights? 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. […]
Market Update • September 8, 2022

Statistics and Perspective: A real estate update

by Luke DeLacey
In the words of Mark Twain, “Facts are a stubborn thing, but statistics are pliable.”
Throughout this year, as we’ve seen the real estate market cool down, there have been many shocking headlines on the state of the real estate market. It seems many of these headlines are used as clickbait to get people to click on the article. Once the article is read, what is being reported is often not as shocking as the headline makes it seem. Here are a few useful graphs that illustrate where the real estate market is today:
Total Days on the Market:
aXvU-Rsp.png
Median Days on Market for Twin Cities Region and more
Pending Sales:
aX4q-ibg.png
Pending Sales for Twin Cities Region and more
Original List Price:
aX4a-YMR.png
Median Original List Price for Twin Cities Region and more
What do these graphs represent? Change has happened! However, the change has been slight up to this point. Homes are still selling even though its taking slightly longer. Buyers can expect to pay about the same but they will get more buyer friendly terms on the sale than in 2021.
Have any questions? As always, feel free to reach out!
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Market Update Post-Election, What’s Next for Real Estate? 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 […]
Market Update Could we see our first rate cut? September’s Update 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 […]
Market Update Upcoming Changes to the Real Estate Industry: NAR Settlement Update Starting on August 17th, new practices resulting from the National Association of Realtors (NAR) settlement will take effect. Here are the two main changes that you should be aware of: – A buyer’s agent’s compensation for selling a house listed on the Multiple Listing Service (MLS) will no longer be advertised on the MLS, the […]
Market Update • September 8, 2022

As home purchases are slowing down another real estate sector is heating up.

by Luke DeLacey
As home purchases are slowing down another real estate sector is heating up.
Background:
The monthly principal and interest portion of a house payment for a $300,000 home late in 2021 assuming a 3% interest rate and 5% down-payment would have been around $1,200/month. Today at a roughly 5% interest rate, that amount has gone up to roughly $1,530/month. This increased cost has caused a slowdown in the amount sales happening.
What does it mean?
This slowdown does not indicate that there isn’t still a huge demand for housing. Many that have decided to not purchase a home now are looking for rental options instead. This increase in demand for rentals has caused rent prices to soar. Along with the increased demand, rising property taxes, insurance, and maintenance costs are also bringing up rental prices.
From my own experience working with investment property owners, many are seeing numerous applicants for any available units. In Minnesota, rents are up roughly 11% while nationwide that number is closer to 25%.
The demand for housing remains strong. We can likely expect this demand to remain for several years to come.
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Market Update Could we see our first rate cut? September’s Update 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 […]
Market Update Upcoming Changes to the Real Estate Industry: NAR Settlement Update Starting on August 17th, new practices resulting from the National Association of Realtors (NAR) settlement will take effect. Here are the two main changes that you should be aware of: – A buyer’s agent’s compensation for selling a house listed on the Multiple Listing Service (MLS) will no longer be advertised on the MLS, the […]

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