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

Bidding With Multiple Offers: The Smart Way

Most real estate markets are picking up and the Minneapolis market is no exception. The housing affordability index is high and home buyers have been waiting to jump into action. With the shortage of good inventory however, there are more buyers than suitable properties, and we are seeing some multiple offer situations.

Multiple offer situations can cause buyers to make hasty and sometimes irrational decisions. The first piece of advice for buyers is to relax, take a deep breathe, and don't worry too much about the other offers. There will be some competition for the house, don't let it pressure you into making an offer, especially if you're not ready. You might find that you will have to write an offer sooner than you thought. If you are comfortable with the house and the situation, move forward.

Only pay what the house is worth to you, and only pay what you are comfortable paying. You don't know what the other offer or offers may be, they could all be "low ball" offers! There are many different scenarios that could happen and you may be the most attractive offer for many different reasons. Focus on the negotiation of your offer, don't worry about the other buyers, you aren't working with them, you are working with the selling agent. If you are serious about the house, put your best foot forward with your earnest money deposit. It shows the buyers you mean business!

Final piece of advice. If you finally find the house you have been looking for and you have to compete with other buyers, you don't want to have any regrets. Would you like to find out that you missed by $500 dollars? would you have paid $1000 more to get it? If you don't end up with the house, at least you know that you gave it your best effort.

Written by: Brad Novy

Parade Of Homes!

Have you ever been to the Parade Of Homes? If you have, you are probably just as excited as I am right now! If you have never participated in the parade of homes, you are missing out, and you need to mark a day on your calendar and go to the parade!

The Parade Of Homes is an event that spans from March 2nd to the 24th. During this time, home builders throughout the Twin Cities will have their model homes open to view! All newly built model homes are open Thursday - Sunday from noon to 6pm. The Parade Of Homes also features remodeled homes. These will be open on Friday from 1pm - 7pm and Sat/Sun from noon to 6pm.

Look at different types of homes made by all of the different builders. Shop for your next home! Check out the different areas of the metro. Discover trending styles and decor. Make it a cheap date!

Ready to get started? Grab a directory for the parade, you can find them at any Holiday Stationstore! What are you waiting for!? Get out there and check out some homes! More info here

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?

Low Inventory Levels Means High Prices.

The number of new listings was down in 143 of 146 metro areas this January. The listings inventory fell to a six-year low according to a monthly report from Realtor.com. Supply is low, and with the economy coming back strong, home buyers who have been patiently waiting to buy, are now ready. Supply of homes is dropping, and the demand for homes is rising. That means one thing, higher prices!

 Inventory is probably close to as low as it will go. With home prices going higher, we will start to see more listings as home owners are looking to sell and move up, that is good news for both home buyers and home sellers!

Apple Valley Market Update!

Changes in the real estate market are happening, and the recovery of the market is becoming more publicly known. Since last January, the inventory of available homes in the twin cities has gone down 32.2%! The recovering economy and low interest rates means more people are looking to buy houses, therefore, demand is rising. If you aren't sure why this is significant, it means that prices are rising! The median sales prices of homes in the twin cities has risen 14.3% since last January.

The Apple Valley real estate market is booming! The median sales price has risen 30.2% to $185,000 in the last year! Home owners are finding relief and peace of mind in this market turnaround. The average time on the market for a sale is under 100 days. This is all good news for people who are looking to sell their house. It is also good news for buyers, knowing that the market will more than likely put them in a good position for a quick gain in equity. Click here for a more detailed look into the Twin Cities market.

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.

Thank You!

I am excited to share the results of the J.D. Power and Associates 2011 Home Seller/Buyer Studysm. RE/MAX is the proud recipient of these awards . The JAM Team loves being a part of the RE/MAX Results family.