Jumbo Loans and Luxury Homes

Expensive homes come with expensive mortgages. Lenders have developed large specialized loans known as "jumbo loans" that allow borrowers to borrow more. The luxury home market is continuing to rise, so naturally, the jumbo loan market is following. According to the National Association of Realtors, sales of homes worth between $750,000 and $1 million are up 38.7% since last year. Homes selling for over $1 million has gone up 25.7%

Interest rates of these jumbo loans have been creeping closer and closer to the rates of ordinary loans, some jumbo's interest rates have been just as good as the average priced loans. This is one of the main reasons we are seeing a boom in jumbo's. The rates have been able to decrease because only the most qualified buyers are being approved for such a large amount of borrowed money.

Written by: Brad Novy

When Will Spring Come!?

Does this Minnesota winter seem longer than normal? Well that's because it has been! The average temperature for this time of year in Minneapolis is in the mid fifties! This drawn out cold weather is not slowing down home buyers though! Spring is one of the busiest times of the year for home buying activity, the low inventory levels are driving some competition in the marketplace! If you are buying a house, you might find yourself in a multiple offer situation!

The weather forecasts another snow fall this weekend, but it may be mother nature's last hurrah for winter. Everyday it seems that the snow is melting away, soon we will see the brown grass turn green, leaves forming on the trees, and the ice melting on the lakes.

Before you buy or sell a house, make sure you have done your research, and have consulted with a professional. This Spring will be very busy and it's important that you are prepared to move fast in today's market!

Robots In Real Estate?

The world is constantly being changed by technology, the iPad is becoming a must for real estate agents. Could robots be the next must? A recent article from inman news showcased five ways that robots could change the real estate business.

The first showcased robot is a telepresence robot made by Double Robotics. This robot basically allows you to be in two places at one time! It requires two iPads, one mounted to the robot, and the other in your hands. It features a remotely adjustable neck height so you can remain at eye level when having conversations. This model is available for just $1,999!

Next, we have Romo. Romo can be an extra hand around the office, and it can help take photos!

Another Robot will enable Realtors to take pictures from up above without the use of a ladder. The AR.Drone 2.0 is a flying drone that can record video and take pictures, all while being controlled using your mobile device! Check out the article here.

What do you think about these devices? Could you see them being frequently used in the near future?

Everything you need to learn the Twin Cities real estate market.

The Minneapolis Association of Realtors website offers a very unique tool to help people learn about the real estate market of the twin cities. This tool is great for everyone from home buyers and home sellers, to real estate investors, to individuals who just want to learn more about the market. This tool is appropriately called, "The Thing".

"The Thing" lets you search for information on any part of the metro area you wish. It really has every metric you could think of. Click here to learn more about the real estate market using "The Thing"

HomeFinder.com joins Re/Max's vendor network.

RE/MAX has included HomeFinder.com into it's approved supplier program, which gives all of its 90,000 agents access to the vendor's marketing platform. HomeFinder.com has been a very successful real estate listing and marketing company for quite some time, and RE/MAX knows that this is a good move. Around 90 percent of home buyers start their search online, so this partnership will give RE/MAX's associates a greater web presence, which in turn will help them provide a higher level of customer service.

Are the mortgage rates as low as they will go?

Mortgage rates have risen very slightly for three out of the past four weeks. It has been two months since we have seen the lowest recorded rates of 3.31 percent for the average 30-year fixed-rate loan.

Frank Nothaft, (Chief Economist for Freddie Mac) seems to think that the all- time low rates may be behind us. Nothaft foresees the rates to climb up to 3.75 percent by years end, and move to above 4 percent the next year.

The rates will still be very favorable for new home buyers for a while, however, home owners exploring the option of a re-finance shouldn't wait around too much longer if they want to lock in with these historically low rates. As the economy shapes up, rising rates are a natural occurrence. They will fluctuate a little, but the days of 3.31 percent may be gone.

Low Cost Tips to Prepare Your Home for Selling

Sellers always ask me what they can do to have their house sell faster and at the best possible price. Here are a five low cost tips that that I suggest for preparing your home for sale.




#1 Make the most of that first impression- I advise owners to clean or paint their front doors, update landscaping and take care of the yard and walkways. Make buyers feel welcome and show them that the home has been cared for from their first look!



#2 Check faucets and bulbs- Don't let little problems detract from what is right with your home!



#3 Create dream bedrooms- Get rid of excess furniture, update your bedspreads and curtains. Add new throw pillows on the bed to give the room a cozy and upscale finish.



#4 Make your bathrooms sparkle- Check and repair caulking in the tubs and showers, update towels and shower curtains, remove all items from the counters and CLEAN! A new light fixture or mirror over the sink can also add an updated feel to the room.



#5 Stage rooms to appeal to buyers- Remove extra furniture and rearrange rooms so they are easy to walk through. Add slipcovers to furniture with older patterns. Make sure lighting is sufficient. Remove any collections or displays that may interest or distract buyers and replace with artwork in complimentary colors.

Is It A Good Time To Buy?

Buyers often ask when is a good time to buy, and one thing I always tell them to look at is housing affordability. This housing affordability index measures housing affordability for the Twin Cities region.  An index of 120 means the median household income was 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability. The past months housing affordability index was 256, which increased 10.3% from the previous month. That means the median household income has 256% of what it takes to qualify for their next dream home. Of course, every buyer has different circumstances. It may be time to sit down with a professional to determine if now is the right time for you to buy!

Listing Your Home During The Holidays: Do or Don't?

As we enter this holiday season, I thought I would address the debatable act of listing/keeping a home on the market during this oh so important time. Many consumers, and real estate professionals alike, may agree that listing your home during the holiday season can be a mistake. Sellers are extremely busy during this time, and having your home on the market will certainly not make you any less busy. Some may also think that since sellers are so busy, buyers must be too, therefore why add to all your already mounting stress by listing your home, when it may not even attract any buyers!

Well that's one viewpoint, and here's mine (along with many of the top agents throughout the country):

• So what if there are less buyers searching around the holiday time! If everyone agreed with the above message, there would also be less listings. This means that there are fewer options for buyers and lower competition rates for your home. Quite a few individuals have vacation time they need to use up toward the end of the year, and save it for time around the holidays. Extended time off definitely gives buyers plenty of time to view homes, especially the serious buyers. Did I mention, buyers searching around this time, tend to be more serious, rather than buyers just starting to look? These serious buyers give you a much better chance of getting a deal on your home closed!

• People relocate from all over the country, all year long. If they have to relocate from Orland to Minneapolis, they don't get to say, "I'd like to wait until next spring to move." They go where they're told, when they're told, and they'll need a new home when they do. That home will not be yours, if it isn't on the market.
  

• I do understand keeping your home show ready during this time could be a hassle (especially with little ones around; see previous post). Not a problem. You would most likely be cleaning your home to have company over any way right? Well there is something you can check off your list! Clean your house once, and make it a habit to keep it nice and tidy after that, which should include help from everyone living in the home. Now your all ready for showings, and your guests! Never be afraid to ask your agent for help as well. After all, it is their job to get the highest possible return for your home, and that can only come when your home is showing at it's best, and it's cleanest. Worried about showings at inconvenient times? You can have your agent set up customized showing instructions, around the dates and times you choose you would like to allow or not allow showings.

• Now you sold your home (oh no...), and you don't want to move around the holidays! Not to worry. One of your terms in the purchase agreement, can be the closing date. This tends to be flexible, and one would assume that the buyers wouldn't like to move around holiday time either.

There are always two sides to a story, and definitely different view points. But let me ask you this: If you want to sell your house, how would you expect to do that by keeping it, or taking it off the market?

Its Been One Year - Here's What I Have Learned!

Today is my daughter's first birthday. It has been an incredible year of learning, laughter and adjustments for me. My daughter is truly the most amazing gift. In honor of her, I thought I would take this opportunity to share what I have learned over the last year as it pertains to real estate.

First of all, sellers with children have my highest admiration. I pride myself on being a good housekeeper but my home could not be shown to a prospective buyer on anything less than a full day of scrubbing, organizing, catching up on laundry and dishes. I have no idea how sellers contain the "stuff" that comes with having one tiny extra person in the home!

As far as desired features in a property, I have definitely changed my tune. Open floor plans are no longer on the top of my list. What I wouldn't give right now for doors to close off space that can't be entirely child proofed and to have smaller rooms that can contain a very curious child. An entire level of hardwood floors may look great but I now envision the many falls and tears of a newly walking baby when I see them. Stainless steel appliances are no longer a sleek and stylish amenity but a display fingerprints that appear faster than I can wipe them off. I am already dreading the day she discovers that the loft provides a perfect opportunity to play her favorite game of dropping things and watching them fall.

This first year was definitely an eye opener and I look forward to the adventures ahead!

Live On Youtube!

Over 5 million people have found and subscribed to a friend's channel on Youtube. 5 million? Wow! Now, does that statistic include you? Youtube is the second most visited site on the web, making it a beacon for literally any topic your heart desires. The JAM Team at RE/MAX Results has taken note of that statistic. We have created a Youtube channel that is both informational, and fun! Looking for our listings? You'll find them! Looking for information about your area? You'll find that too! Looking to throw a rocking halloween party? Why you will find everything you need to make that happen! Personally, I would just like some simple decorating ideas that I can easily complete myself, so I've made that information accessible to all as well. Subscribe to our channel today, and keep up to date about what the JAM Team has to offer!

Follow the link below:
http://bit.ly/jtyou