Pinnacle Realty Group - MN Realtors

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A lot is happening in the world, and it’s having a direct impact on the housing market. The reality is this: some of it is positive and some of it may be negative. Some we just don’t know yet.

The following three areas of the housing market are critical to understand: interest rates, building materials, and the outlook for an economic slowdown.

Starting the Search for Your Dream Home? Here Are 5 Tips!

In today’s real estate market, low inventory dominates the conversation in many areas of the country. It can often be frustrating to be a first-time homebuyer if you aren’t prepared.

In a realtor.com article entitled, “How to Find Your Dream Home—Without Losing Your Mind,” the author highlights some steps that first-time homebuyers can take to help carry their excitement of buying a home throughout the whole process.

1. Get Pre-Approved for a Mortgage Before You Start Your Search

One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search. Even if you are in a market that is not as competitive, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach.

This step will also help you narrow your search based on your budget and won’t leave you disappointed if the home you tour, and love, ends up being outside your budget!

2. Know the Difference Between Your ‘Must-Haves’ and ‘Would-Like-To-Haves’

Do you really need that farmhouse sink in the kitchen to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the ‘man cave’ of your dreams be a future renovation project instead of a make-or-break right now?

Before you start your search, list all the features of a home you would like and then qualify them as ‘must-haves’, ‘should-haves’, or ‘absolute-wish list’ items. This will help keep you focused on what’s most important.

3. Research and Choose a Neighborhood You Want to Live In

Every neighborhood has its own charm. Before you commit to a home based solely on the house itself, the article suggests test-driving the area. Make sure that the area meets your needs for “amenities, commute, school district, etc. and then spend a weekend exploring before you commit.”

4. Pick a House Style You Love and Stick to It

Evaluate your family’s needs and settle on a style of home that would best serve those needs. Just because you’ve narrowed your search to a zip code, doesn’t mean that you need to tour every listing in that zip code.

An example from the article says, “if you have several younger kids and don’t want your bedroom on a different level, steer clear of Cape Cod–style homes, which typically feature two or more bedrooms on the upper level and the master on the main.”

5. Document Your Home Visits

Once you start touring homes, the features of each individual home will start to blur together. The article suggests keeping your camera handy to document what you love and don’t love about each property you visit.

Making notes on the listing sheet as you tour the property will also help you remember what the photos mean, or what you were feeling while touring the home.

In a high-paced, competitive environment, any advantage you can give yourself with Pinnacle Realty Group - MN Realtors will help you on your path to buying your dream home.

2 Myths Holding Back Home Buyers

reddie Mac recently released a report entitled, “Perceptions of Down Payment Consumer Research.”Their research revealed that,

“For many prospective homebuyers, saving for a down payment is the largest barrier to achieving the goal of homeownership. Part of the challenge for those planning to purchase a home is their perception of how much they will need to save for the down payment…

…Based on our recent survey of individuals planning to purchase a home in the next three years, nearly a third think they need to put more than 20% down.”

Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate the funds needed to qualify for a home loan. According to the same report:

22% of renters and 31% of homeowners believe lenders require 20% or more of a home’s sale price as a down payment for a typical mortgage today. And,

“If a 20% down payment was required, 70% of those who were planning to buy a home in the next three years said it would delay them from purchasing and nearly 30% indicated they would never be able to afford a home.”

While many believe at least 20% down is necessary to buy the home of their dreams, they do not realize programs are available which permit as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined!

Myth #2: “I Need a 780 FICO® Score or Higher to Buy”

Many either don’t know or are misinformed concerning the FICO® score necessary to qualify, believing a ‘good’ credit score is 780 or higher.

To debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach with Pinnacle Realty Group - MN Realtors.

Young First-Time Buyers Are Saving for Their Dream Homes

Young buyers (Millennials & Gen Z) have waited longer than previous generations to enter the housing market for their first home. However, this hasn’t stopped them from dreaming about the home they will eventually buy. Many spend hours searching listings and building Pinterest boards of their favorite home features.

According to a survey from Open Listings, 70% of single renters are more likely to spend their Sunday nights swiping through house listings than dating profiles.

All that time window shopping has led 45% of millennials to expect the first home they buy to be their “dream home”! They are willing to wait longer, save more for a larger down payment, and are pickier about the listings they want to tour and the features that they want to see in their first home.

Waiting a little longer to buy a home than their parents or grandparents did has also helped young buyers become more established in their careers prior to making such a large purchase. Lawrence Yun, NAR’s Chief Economist, recently commented,

“Older millennials are now entering the prime earning stages of their careers, and the size and costs of homes they purchase reflect this. Their choices are falling more in line with their Gen X and boomer counterparts.”

In some areas of the country, high competition in the starter home market forces young buyers to wait longer. The extra money they save during that time opens their search to bigger, more expensive homes.

If this trend continues, older millennials will skip the starter home altogether, going straight to a trade-up or premium home instead.

If you are one of the many young renters planning on buying your first home soon, get together with Pinnacle Realty Group - MN Realtors to help determine what type of home will best suit your present and future needs.

The Feeling You Get from Owning Your Home

We often talk about the financial reasons why buying a home makes sense. But, more often than not, the emotional reasons are the more powerful and compelling ones.

No matter what shape or size your living space is, the concept and feeling of home can mean different things to different people. Whether it’s a certain scent or a favorite chair, that feeling of safety and security you gain from owning your own home is simultaneously one of the greatest and most difficult to describe.

How to Sell Your Home for a Good Price in a Tough Market

In an ideal world, you would always be able to sell your home for the price you want. But sadly,home sellers don’t always have the benefit of a hot market. While you can’t do much about a slow market, you can take steps to help your home sell faster and for a better asking price. Working with a great real estate agent, setting a realistic asking price, preparing your house to attract potential buyers, and marketing your home aggressively will help you shift the odds in your favor and increase your chances of a smooth sale.

Clean and Declutter

Cleaning your home is an important part of preparing it for sale. In a slow market, buyers can afford to have high standards, so your home needs to be flawless. A top-to-bottom deep clean is essential. Take the time to sort through your belongings and declutter your home as well. According to Professional Staging, removing clutter will make your home appear larger and well-maintained, but also help your buyers see all of your home’s best features without getting distracted by personal collections, family photos, and knickknacks. If you need somewhere to store your stuff while your home is on the market, consider renting a storage unit.

Take Great Pictures

When your home is in top shape and ready to wow those potential buyers, take some pictures. High-quality real estate photography can help you capture the hearts of your buyers before they even set foot in your home! For best results, shoot your pictures on a bright day with your blinds wide open. Rooms filled with natural light will appear bigger, brighter, and much more welcoming than they would at night. If you don’t feel confident in your camera equipment or your photography skills, consider hiring a professional real estate photographer for this task.

Set the Right Listing Price

Setting your asking price is a tough process. Price your home too low, and you will lose money on your sale. But price it too high above market value and you may turn away potential buyers. While it's true that homebuyers can make a lower offer on an overpriced listing, don't count on this. Since buyers often search for homes in a set price range, they might not even come across your home if it is overpriced. One of the best ways to come up with a realistic asking price is to work with an experienced real estate agent and to listen to their recommendations. Don’t let emotion get in the way of your home sale!

Selling a home in a buyer’s market is difficult, but not impossible. With the right preparations, you might just get the sale price that you’re after. The key is to dazzle your potential buyers with cleanliness, worthwhile home upgrades, stunning staging, and beautiful real estate photos. Price your home right, and a buyer should come along in no time!