How to price to sell and still make a profit!

How to price to sell and still make a profit!

The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit and how long your home will sit on the market. Your real estate agent's knowledge of the overall market and what's selling - or not selling - will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won't leave money on the table.

Here are some points to consider: Time. Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit and how much you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money, think about a price that will encourage buyer activity (read: fair market value).

Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity. It's important that you not confuse value with cost - in other words, how much you value your home versus what buyers are willing to pay for it. Don't place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.

Keep it simple. Because time is of the essence, make it easy for the buyers. Remain flexible on when your agent can schedule showings. Also, avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.

If you are interested in selling your home in Minneapolis, Maple Grove, Plymouth or any surrounding city give me a call or visit http://www.MN-TwinCities.com of more information.

CHAD ELLIOT, REALTOR© The Hennepin Group, LLC Keller Williams Realty 17205 Yale Street NW, Suite D Elk River, Minnesota, 55330	Mobile: (651) 795-1147 Fax: (763) 241-0187 Email: chadelliot@kw.com ChadElliot.com

We are still in a Buyer's Market, but for how long?

We are still in a Buyer's Market, but for how long?

We all wish we had a crystal ball to predict when the real estate market will recover. Unfortunately no one knows exactly when that will happen, but there is plenty of speculation to go around.

"If it is just speculation, why is it so important that I buy now?" you may ask. There are many good reasons to buy sooner rather than later. Not only are interest rates the lowest they have ever been in recorded history, but they are predicted to rise, it is only a matter of time. Home prices are still low, especially compared to the "peak" of the market. However, every "nth" of a point the interest rates go up, the monthly payment will also rise. This means that to have the same monthly payment purchasing year from now as you could have purchasing today, you will have to spend less on the sales price of a home.

Other good reasons to buy now are the Home-buyer Tax Credit, which is set to expire on April 30, 2010, USDA is still offering 100% financing on qualifying properties, the Neighborhood Stabilization Program (NSP) is offiering downpayment assistance on qualifying areas and there are many other programs designed to stimulate the real estate market out there for buyers as well.

Also, lending practices and credit standards are continuing to "tighten up". This means that more and more buyers will be shut out of the market as they become ineligable due to stricter lending guidelines.

-Mortgage Rates: The rate on a 30-year mortgage averaged 5% last week, according to Freddie Mac. Rates are low in part because the Federal Reserve has been buying up about $3 trillion in mortgage-backed securities and mortgage agency debt. The aim is to hold down interest rates and keep mortgages available. But the Fed has no plans to buy any more past March 30, 2010. The likely result is an uptick in rates. Economists at the Mortgage Bankers Association expect to see a 6.1% rate by year end. Such a rise would add about $104 to the monthly payment on a $150,000 mortgage.

-Home Buyer Tax Credit: The home buyer tax credit expires on April 30, 2010 and no one knows if Congress will renew it a second time. To qualify for the credit, you must sign a purchase contract by April 30, 2010 and close by July 1, 2010. First-time buyers get up to $8,000. "First-time" is defined as someone who hasn't owned a home in three years. Move-up buyers get up to $6,500 when they purchase a new primary residence. To get the credit, you have to have lived in the old home for at least five out of the last eight years. The credits start phasing out at $125,000 in adjusted gross income for singles and $225,000 for joint filers.

- Credit Standards: Mortgage lenders have been tightening credit standards, which means fewer eligible buyers. Lenders are insisting on credit scores of 640 to 660 for loans sold to Fannie Mae, Freddie Mac and 620 for FHA guaranteed loans. Those standards are higher than the federal agencies themselves insist on. FHA-which guarantees loans for people with low down-payments-has been raising its own insurance charges to borrowers and demanding higher premiums from people with poor credit scores."

CHAD ELLIOT, REALTOR© The Hennepin Group, LLC Keller Williams Realty 17205 Yale Street NW, Suite D Elk River, Minnesota, 55330	Mobile: (651) 795-1147 Fax: (763) 241-0187 Email: chadelliot@kw.com ChadElliot.com

Understanding the Buyer

As the seller, you can control three factors that will affect the sale of your home:

* The home's condition
* Asking price
* Marketing strategy

However, it's important to note that there are numerous other factors that influence a buyer, and you need to understand these consumer trends when you enter the sellers' market. The more your home matches these qualifications, the more competitive it will be in the marketplace. Your real estate agent can advise you on how to best position and market your home to overcome any perceived downsides.

Location
Unfortunately, the most influential factor in determining your home's appeal to buyers is something you can't control: its location. According to the National Association of REALTORS(r), neighborhood quality is the No. 1 reason buyers choose certain homes. The second most influential factor is commute times to work and school.

Size
While some buyers want to simplify their lives and downsize to a smaller home, home sizes in general have continued to increase over the decades, nearly doubling in size since the 1950s. Smaller homes typically appeal to first-time home buyers and "empty nesters," or couples whose children have grown up and moved out.

Amenities
Preferences in floor plans and amenities go in and out of fashion, and your real estate agent can inform you of the "hot ticket" items that are selling homes in your market. If your home lacks certain features, you can renovate to increase its appeal, but be forewarned: That's not always the right move. Using market conditions and activity in your neighborhood as a gauge, your agent can help you determine whether the investment is likely to help or hinder your profit margin and time on the market.

Twin Cities Market Activity Report - WE 2/22

Twin Cities Market Activity Report - WE 2/22
provided by MAAR

The Twin Cities housing market in early 2010 looks pretty much like it did in early 2009. How similar? Over the last three months, there have been 7,189 signed purchase agreements; there were 7,186 a year ago during the same time period. Eerie, no? Robotic precision.

For the week ending February 13, there were 711 pending sales, down 2.7 percent from last year, and new listings posted 1,764 units, up 4.9 percent from a year ago. The only thing that's really changed much is the supply of available homes, which continues to dwindle relative to a year ago. The current stock of 22,271 available homes represents a 12.4 percent decline from a year ago.

For more information on the Maple Grove, Minneapolis, Plymouth, St. Paul real estate markets please contact me or visit my website at http://www.MN-TwinCities.com/.

CHAD ELLIOT, REALTOR© The Hennepin Group, LLC Keller Williams Realty 17205 Yale Street NW, Suite D Elk River, Minnesota, 55330	Mobile: (651) 795-1147 Fax: (763) 241-0187 Email: chadelliot@kw.com ChadElliot.com

Being a Landlord Can Be Increasingly Profitable

Being a Landlord Can Be Increasingly Profitable

Despite falling rents and rising vacancies, the profitability of residential rental property is improving.

Investments in apartment complexes are generating annual returns of 7-8 percent immediately because purchase prices have declined.

Buying a rental property isn’t for everyone. It requires putting down at least 50 percent in cash because banks are reluctant to lend more. And buyers need to be able to hold the property for at least three to five years or more to give the investment time to gain value.

Local Market Monitor, which analyzes real estate investments, identifies these good and not-so-good markets for landlords:

Good Markets
Columbus, Ohio
Washington, D.C.
Raleigh, N.C.
Greenville, S.C.
Columbia, S.C.
Kansas City, Mo.
Oklahoma City, Okla.
Fort Worth, Texas
El Paso, Texas

Bad Markets
Detroit
Cleveland
Wilmington, Del.
Dayton, Ohio
Orlando
Tampa-St. Petersburg
Boise, Idaho
Stockton, Calif.
Las Vegas
Phoenix

Source: The Wall Street Journal, M.P. McQueen (02/20/2010)

CHAD ELLIOT, REALTOR© The Hennepin Group, LLC Keller Williams Realty 17205 Yale Street NW, Suite D Elk River, Minnesota, 55330	Mobile: (651) 795-1147 Fax: (763) 241-0187 Email: chadelliot@kw.com ChadElliot.com

Foreclosures in Minnesota remain "dangerously high"

Foreclosures in Minnesota remain "dangerously high"

There were 23,019 home foreclosures in Minnesota in 2009. While that was down 12 percent from 2008, it was still the second highest year on record, according to the Minnesota Home Ownership Center.

“The foreclosure numbers in Minnesota remain dangerously high,” said Ed Nelson, marketing and communications manager for the center.

Hennepin County had the highest number of home foreclosures in the state in 2009, followed by Ramsey, Anoka, Dakota and Washington counties.

The Top 10
Home foreclosures in 2009, by county
1. Hennepin........5,655
2. Ramsey..........2,519
3. Anoka............2,069
4. Dakota............1,787
5. Washington....1,255
6. Wright...............861
7. Scott.................811
8. Sherburne.........702
9. Stearns.............506
10. St. Louis..........441

For more information click here

Source: Minnesota Home Ownership Center

CHAD ELLIOT, REALTOR© The Hennepin Group, LLC Keller Williams Realty 17205 Yale Street NW, Suite D Elk River, Minnesota, 55330	Mobile: (651) 795-1147 Fax: (763) 241-0187 Email: chadelliot@kw.com ChadElliot.com

Twin Cities Market Activity Report - WE 2/15

Twin Cities Market Activity Report - WE 2/15
provided by MAAR

The Twin Cities housing market at the beginning of 2010 continues to look similar to the Twin Cities housing market at the beginning of 2009. There were 1,848 new listings for the week ending February 6, a 3.8 percent increase from the same week last year. On a similar track, there were 780 pending sales for the same week, 4.7 percent above last year.

With supply dropping—now at 5.5 months of availability—it may be that potential buyers are all too familiar with the inventory they have to choose from, especially in the lower price ranges where sales have been through the roof in the last year and inventory has dropped quickly.

CHAD ELLIOT, REALTOR© The Hennepin Group, LLC Keller Williams Realty 17205 Yale Street NW, Suite D Elk River, Minnesota, 55330	Mobile: (651) 795-1147 Fax: (763) 241-0187 Email: chadelliot@kw.com ChadElliot.com

The Twin Cities Monthly Skinny - February

The Twin Cities Monthly Skinny for February is here! In January, we saw the first signs of a "normal" market with home prices stabilizing when compared to last year. Take a few minutes and enjoy the video.


If you have any further questions or would like to know more details about the Elk River, Big Lake, Otsego, Maple Grove, Ramsey and Minneapolis housing markets give me a call or visit MN-TwinCities.com.

CHAD ELLIOT, REALTOR© The Hennepin Group, LLC Keller Williams Realty 17205 Yale Street NW, Suite D Elk River, Minnesota, 55330	Mobile: (651) 795-1147 Fax: (763) 241-0187 Email: chadelliot@kw.com ChadElliot.com

Twin Cities Housing Supply Outlook - February

Twin Cities Housing Supply Outlook - February 2010
provided by MAAR

The new construction market has made huge strides in cutting down on oversupply the last year. The inventory of newly built homes has dropped to 2,175, down 32.6 percent from the last year. Meanwhile—on the demand side—sales picked up during 2009 thanks to the federal tax credit for first time buyers. The combined effect is that the Months Supply of new construction inventory has fallen from 11.0 to 7.8 in the last year.

Does that mean its time for builders to start putting new projects in the ground, post haste? Not quite. The impending loss of the federal tax credit and a likely increase in mortgage rates down the road mean that downward pressure on home sales is on the horizon. Regardless, the new construction market is in a much better place than it was a year ago.

The biggest growth in new construction home sales can be found in the lower price ranges of single-family detached properties. Sales are up strongly in that segment over the last 12 months.

CHAD ELLIOT, REALTOR© The Hennepin Group, LLC Keller Williams Realty 17205 Yale Street NW, Suite D Elk River, Minnesota, 55330	Mobile: (651) 795-1147 Fax: (763) 241-0187 Email: chadelliot@kw.com ChadElliot.com