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        <title>Real Estate Blog</title>
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        <description></description>
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    <guid>https://www.minneapolisurbanhomes.com/blog/4-most-popular-bottom-line-investments-in-america.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/4-most-popular-bottom-line-investments-in-america.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>4 Most Popular Bottom Line Investments in America</title>
    <description> <![CDATA[ 



 




Every year, Gallup surveys Americans to determine their choice for the best long-term investment. Respondents are given a choice between real estate, stocks, gold, and savings accounts.


For the sixth year in a row, real estate has come out on top as the best long-term investment That has not always been the case. Gallup explains:




“Between 2008 and 2010, covering most of the Great Recession period that saw plummeting home and stock values, Americans were as likely to name savings accounts or CDs as the best long-term investment as they were to name stocks or real estate.”




This year’s results showed that 35 of Americans chose real estate, followed by stocks at 27. The full results are shown in the chart below.





Bottom Line


Now that the real estate market has recovered, so has the belief of the American people in the stability of housing as a long-term investment.


From Keeping Current Matters, 5/23/19


 ]]> </description>
    <pubDate>Thu, 23 May 2019 14:14:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/4-tips-for-making-a-competitive-offer.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/4-tips-for-making-a-competitive-offer.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>4 Tips for Making a Competitive Offer</title>
    <description> <![CDATA[ 



 




So, you’ve been searching for that perfect house to call 'home,' and you've finally found it The price is right, and in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true


Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:


1. Determine Your Price




“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”




Based on your agent’s experience and key considerations (like similar homes recently sold in the same neighborhood or the condition of the house and what you can afford), your agent will help you to determine the offer that you are going to present.


Getting pre-approved will not only show home-sellers that you are serious about buying, but it will also allow you to make your offer with confidence because you’ll know that you have already been approved for a mortgage in that amount.


2. Submit an Offer




“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.”




Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market A licensed real estate agent who is active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer.


3. Negotiate the Offer




“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.


Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.”




If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller or even cancel the contract altogether.


4. Act Fast


The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.


Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as quickly as possible.


Bottom Line


Whether buying your first home or your fifth, having a local real estate professional who is an expert in his or her market on your side is your best bet in making sure the process goes smoothly. Let’s talk about how we can make your dream of homeownership a reality


From Keeping Current Matters, 5/15/19


 ]]> </description>
    <pubDate>Wed, 15 May 2019 13:55:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/the-benefits-of-a-20-down-payment.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/the-benefits-of-a-20-down-payment.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>The Benefits of a 20 Down Payment</title>
    <description> <![CDATA[ 





If you are in the market to buy a home this year, you may be confused about how much money you need to come up with for your down payment. Many people you talk to will tell you that you need to save 20 or you won’t be able to secure a mortgage.


The truth is that there are many programs available that let you put down as little as 3. Those who have served our country could qualify for a Veterans Affairs Home Loan (VA) without needing a down payment.


These programs have cut the savings time that many families would need to compile a large down payment from five or more years down to a year or two. This allows them to start building family wealth sooner.


So then, why do so many people believe that they need a 20 down payment to buy a home? There has to be a reason Today, we want to talk about four reasons why putting 20 down is a good plan, if you can afford it.


1. Your interest rate will be lower.


Putting down a 20 down payment vs. a 3-5 down payment shows your lender/bank that you are more financially stable, thus a good credit risk. The more confident your bank is in your credit score and your ability to pay your loan, the lower the rate they will be willing to give you.


2. You’ll end up paying less for your home.


The bigger your down payment, the lower your loan amount will be for your mortgage. If you are able to pay 20 of the cost of your new home at the start of the transaction, you will only pay interest on the remaining 80. If you put down a 5 down payment, the extra 15 on your loan will accrue interest and end up costing you more in the long run


3. Your offer will stand out in a competitive market


In a market where many buyers are competing for the same home, sellers like to see offers come in with 20 or larger down payments. The seller gains the same confidence that the bank did above. You are seen as a stronger buyer whose financing is more likely to be approved. Therefore, the deal will be more likely to go through


4. You won’t have to pay Private Mortgage Insurance (PMI)


Simply put, PMI is “an insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20.”


As we mentioned earlier, when you put down less than 20 to buy a home, your lender/bank will see your loan as having more risk. PMI helps them recover their investment in you if you are unable to pay your loan. This insurance is not required if you are able to put down 20 or more.


Many times, home sellers looking to move up to a larger or more expensive home are able to take the equity they earn from the sale of their house to put down 20 on their next home.


If you are looking to buy your first home, you will have to weigh the benefits of saving a 20 down payment vs. the time and cost of continuing to rent while you save that amount.


Bottom Line


If your plan for your future includes buying a home and you’re already saving for your down payment, let’s get together to help you decide what down payment size best fits with your long-term plan


 From Keeping Current Matters, 5/9/19


 ]]> </description>
    <pubDate>Thu, 09 May 2019 14:58:00 -0500</pubDate>
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