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Posts from the ‘Condo Financing’ Category

Tips for multiple offers on Minneapolis Lofts

Minneapolis Lofts for Sale are gaining steam in the market.

Let’s be honest–Minneapolis Lofts in 2013 are selling at fast paced speeds and often the listings that are priced to sell and move in ready are the first to go.  More often than not it is these properties which are garnering multiple offer situations, whether it’s the time of year, a very desirable home or an appealing listing price.
We are seeing an interesting phenomena begin to emerge in the market: the highest purchase price doesn’t necessarily translate into an accepted offer–Sellers of Minneapolis Lofts are looking for short closing timelines, non-contingent offers, zero financing contingencies and short inspection timelines.  We have assembled a handful of helpful tips to make your next offer float to the top of the Sellers list!

HIGHEST OFFER

The winning buyer in a Minneapolis Lofts multiple offer situation is often the one who makes the highest offer, pure and simple. Learn as much as possible about local market values. Look at comparable properties. Ask your REALTOR® to prepare a comparative market analysis (CMA) of the property that will tell you recent selling prices of comparable properties. When market values are rising, there may be a bit of guesswork involved in pricing. You may need to pay more than yesterday’s comparable sales in order to be the successful bidder.

CONSIDER A PRE-INSPECTION

Home buyers who know they have competition will often have properties inspected BEFORE an offer on a Minneapolis Lofts is made. Ask your REALTOR® to find out if other buyers are having condo inspections done. If so, you may want to ask the sellers for permission to complete a home inspection, and any other inspections you believe necessary. This will enable you to make an offer that doesn’t include an inspection contingency.

EARNEST MONEY DEPOSIT

Putting as much of your down payment into your earnest money deposit makes a very strong impression when you write the offer. The “earnest money” is part of your down payment which you simply put down a month earlier. This lets the seller know of your intentions because if the seller accepts your offer and you break the contract, you would lose your earnest money deposit.

CLEAN OFFER

A clean offer means that it has few contingencies, which means certain conditions that must be satisfied in order for the sale to go through. Typical home purchase contract contingencies include financing, inspections and the sale of another home. Put yourself ahead of the crowd by limiting as many conditions as possible before presenting your offer, however, do not forego important – and expensive – things that need to be fixed, e.g. a cracked foundation or leaking roof.

MONEY DOWN

If you can put 10 to 20 percent down, the sellers will be more impressed with that amount than a five percent down payment. You may be able to change your financing terms later but what matters is the money is at the table at closing.

TRUST AN EXPERIENCED REALTORS RECOMMENDATION

If you are working with a good Minneapolis Realtor who knows the loft and condo market take note.  Your real estate agent has the ability and knowledge to influence and impact your decisions throughout the offer process and presenting the offer itself. Trust your Realtor’s advice and guidance. We do this for a living and are working for your benefit.

LITTLE KNOWN SECRET: PERSONAL APPEAL

Find out as much as you can about the Minneapolis condo and loft sellers and their situation.  Writing a letter about why you would love to live in the property can go a long, Long, LONG way!  Some sellers are influenced by emotional appeal, particularly if they’re looking at multiple, similar offers. Find out when the seller wants to close, and offer post-occupancy agreements in case the sellers need to stay while they find a new place to live. These steps will help you stand out from the rest.

  These are a few ways to try to win a multiple bidding situation on a Minneapolis Lofts.  If you are in need of a seasoned Realtor to guide you buying or selling reach out to Ben Ganje at Lakes Sothebys International Realty at 612.460.5638 or ben@yoururbanlife.com.

What Is Motivating Downtown Buyers?

As the momentum of the downtown market starts to pick up spring of 2011 we thought it was pertinent to check out what some members of the investment community are saying.

The Wall Street Journal

Jim Woods wrote an article earlier this year for Market Watch, part of the Wall Street Journal’s digital network. Its title: Why your best investment is a house. Mr. Woods compared the investment potential of real estate against other asset classes such as stocks and precious metals. Here was his conclusion.

One reason your best investment right now could be a home has to do with the relative upside of getting in on an asset class while it’s at the bottom versus buying into other asset classes that could be near a top. Consider for a moment the tremendous upside we’ve seen in stocks, precious metals and agricultural commodities over the past 12 months…

If you’re a long-term investor looking to put money to work, now is not really the best time to get into any of these three asset classes. However, with home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents the best low-risk buying opportunity out there today…

Mr. Woods went on to talk about the financing portion of the purchase:

Yes, mortgage rates still are near historical lows, but if we see these rates rise, then the cost of a new home could climb significantly. So, now could really be the best time to pull the trigger on that home purchase — and it could also be your best investment right now.

Fortune Magazine

Shawn Tully, senior editor at large for Fortune penned an article last week which was titled: Real estate: It’s time to buy again. In the article, Mr. Tully explained:

Forget stocks. Don’t bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.

Let’s state it simply and forcibly: Housing is back. Two basic factors are laying the foundation for dramatic recovery in residential real estate. The first is the historic drop in new construction … The second is a steep decline in prices, on the order of 30% nationwide since 2006, and as much as 55% in the hardest-hit markets. The story of this downturn has been an astonishing flight from the traditional American approach of buying new houses to an embrace of renting. But the new affordability will gradually lure Americans back to buying homes. And the return of the homeowner will start raising prices in many markets this year.

Bottom Line

Neither of the two media sources mentioned above has ever been accused of cuddling up to the National Association of Realtors. However, both have come to the same conclusion. It’s time to buy real estate. Perhaps we should listen to them.