Wednesday, July 6, 2022 / by Brittany Aspenson
Here’s what you need to know before buying new construction.
Are you considering buying new construction? It’s a great option with many benefits; however, it's easy to become overwhelmed and make mistakes. Here are a few things to keep in mind when buying new construction to make the process easy and hassle-free:
1. Do your due diligence when selecting a builder or neighborhood. Your builder can be the difference between a great experience and an awful one. Start your search by creating a list of the neighborhoods, areas, and cities you’re considering. In each location, make a list of the builders and new construction neighborhoods available. A few resources you can use are NewHomeSource, Parade of Homes, and the MLS. Once you create your list, narrow your criteria until you find the best builder and neighborhood for you.
2. Understand the building process. Every builder is different. The timeline can range from a few months to over a year, so know what y! ...
Wednesday, July 6, 2022 / by Brittany Aspenson
What opportunities are waiting for buyers in this market shift.
Now that the market is shifting, a lot of buyers are wondering if it's still the best time to purchase a home or not. I recently interviewed our preferred lender, Matt Grant of Fairway Mortgage, to give us an insight into what it's like to be a buyer right now. Here’s what he had to say:
How are rising interest rates affecting buyers?
"Two Fridays ago, we had an inflation report which was the highest in four years. As a result, interest rates increased by about 1% over just four days. To give you an example, on a $300,000 loan, the principal interest payment at 4% would be $1,435. At 5%, it's $1,620. That's a difference of $185 a month, so even a 1% increase in interest rates has a big impact.
"There might be less competition in the market moving forward."
What should buyers be aware of with the interest rates rising up?
"Rising interest rates could keep home prices down to a level where we might not se! ...
Friday, June 3, 2022 / by Brittany Aspenson
A few financial and logistical considerations before you retire.
Every day in the U.S., around 10,000 people turn 65. As a result, many people are trying to make the right financial decisions before they retire. For example, should you buy a home before you retire, even if you own your home outright? Today I want to go over a few things you should consider before answering that question.
The first thing you need to consider is your financial situation. Only 23% of retirees have mortgage debt, so they plan on using their equity to downsize. This is a great position to be in, but it can be difficult to get to your equity sometimes.
If your equity is not sufficient to purchase your next home, or you’d rather not pay cash and have a mortgage, waiting until after you retire could prevent you from qualifying for a loan. Because of this, it might make sense to purchase your next property before you retire. The best way to do this is to use a home equity line ...
Tuesday, May 24, 2022 / by Brittany Aspenson
I still believe it’s a great time to buy, and today I want to explain why.
If you’ve been paying attention to the news, you know that interest rates and home prices are rising. As a result, many first-time buyers have asked me recently, “Should I wait until the market changes?” My short answer is no, and today I want to explain why.
The first reason why you shouldn’t wait to buy is that interest rates will only continue to rise. If you check out the graph at 0:34 in the video above, you can see that our current rates are still low from a historical perspective. However, they’re likely to increase further to combat inflation. Interest rates have a huge impact on your monthly payment and what you can afford, so I recommend getting into the market now while they’re still good.
"Homes are appreciating rapidly, so you’ll accrue equity fast."
Another reason not to wait is demographic trends. If you look at the gr ...
Thursday, May 5, 2022 / by Brittany Aspenson
A few markets where buyers will face less competition for homes.
Many buyers are either uncomfortable or unable to compete in the many multiple-offer situations throughout our Twin Cities market. Today I wanted to talk about some of the less-competitive markets where you may have more time to make a decision and less pressure to offer so much over asking price.
The first market to look at is the downtown condo market of Minneapolis and St. Paul. Minneapolis has 3.5 months of inventory, and St. Paul has 2.5 months, which is quite a bit more than most markets. The suburbs of these areas are more competitive, with just 0.9 months of inventory. Given that there’s more supply to choose from, you’ll have more time to consider your decision and make the best choice.
The prices in this market are good, too. The list-to-sales price ratio in Minneapolis is 99%, St. Paul’s is 100%, and it’s 102% in the outer suburbs. That means you won’t have to bid as ...