Archive for May, 2016

Comments Off on Minnneapolis Duplex Buyers and Sellers Near Their Limits

duplex loan restrictionsIf you’re thinking of buying to owner occupy or selling a Minneapolis or St Paul duplex, you may think you can pay or ask any price in the world. After all, with an FHA insured loan, all a buyer needs is 3.5 percent down, right?

Not so fast.

Here’s a conversation we haven’t had in a long time.

FHA has limits to the size of the mortgage insurance they’ll provide.

While these numbers vary by where the property is located, it’s important to remember that there are caps.

In the Twin Cities seven county metro area, for example, FHA loan limits are:

  • Single Family – $326,600
  • Duplex – $418,100
  • Triplex – $505,400
  • Fourplex – $628,050

While these numbers don’t limit the amount you can spend, they do restrict the amount of the FHA insured mortgage you can get.  You are welcome to come up with a bigger down payment to make up the difference.

What do I mean? Well, If you write an offer on a duplex for $450,000, your minimum down payment is 3.5% or $15,750. The purchase price of $450,000 – your down payment of $15,750 leaves you with $434,250. FHA will lend you $418,100. $434,250 – $418,100 leaves you with an additional $16,150 in cash you must come up with to purchase the property.

This also impacts Minneapolis duplex, triplex and fourplex sellers. After all, the lower the down payment requirement is for a loan, the bigger the pool of prospective buyers you have. Less buyers means fewer people competing for the opportunity to purchase your property, which may impact value.

After nearly a decade of not having to worry about hitting the ceiling of FHA mortgage insurance, it’s important to be aware of how the reduced limits of the real estate crash may still effect Minneapolis duplex values today.

Comments Off on 10 Reasons It’s A Bad Idea To Sell Your Minneapolis Duplex Yourself

Duplex For Sale By Owner Real Estate Home Open House SignIf you’ve been thinking about selling your Minneapolis or St Paul duplex, you may have heard they seem to be the hottest thing going in the real estate market. And, well, if they’re selling like crazy, you may even have thought about selling it yourself.

Of course, I’m a Realtor, so you may not be surprised to learn I think that may be a really bad idea. And you probably think my beliefs are because if you sell it yourself, a Realtor won’t get paid a commission.

The facts, however, tell a different story.

In fact, here are 10 Reasons It’s a Bad Idea To Sell Your Duplex Yourself:

  1. According to the National Association of Realtors, last year the average for sale by owner netted 9 percent less on the sale of their property than they would have had they used a Realtor. That’s net – in other words, after they paid commissions.
  2. Serious buyers work with Realtors. If you’re serious and in a hurry, or serious and cautious, are you going to be driving around looking for for sale by owner signs? Or are you going to be working with a Realtor in order to see as many properties quickly or have as much protection and guidance as possible?
  3. Realtors are free to buyers. The only reason a buyer would want to purchase a for sale by owner is to save the same commission the seller hopes to keep.
  4. If you’re willing to pay a Buyer’s Agent a commission, remember, the Realtor only represents the Buyer’s best interest. As such, you’re negotiating with someone who’s studies the market and negotiates deals daily.
  5. If the appraiser questions the value of your property, you’re on your own. In a hot market, properties often appraise for less than a buyer is willing to pay. An appraised value for an FHA loan stays with your property for six months and is difficult if not impossible to contest. A Realtor knows the market and can discuss specifics of comparable properties with the appraiser.
  6. 89 percent of all buyers search online for properties. An experienced listing agent has a proven marketing plan to maximize your duplex’s Internet presence and exposure.
  7. Contracts. While the legalease in real estate contracts isn’t too bad, it is, nonetheless, a legally binding contract.
  8. Lawyers cost money, whether you sell or not. If your plan is to have an attorney review your contracts, remember, they charge by the hour. And their fees are payable whether you close on the sale of your duplex or not.
  9. For Sale By Owner companies charge whether you sell or not. Sure, you can pay as you go for the services a Realtor provides. And like an attorney, that money is paid whether your duplex sells or not.
  10. The only time you pay a Realtor is when your duplex sells. Realtors work on commission. That means they aren’t paid unless they succeed in selling your duplex. And if we don’t? We are out all of the money we spent marketing your property.

If you’re thinking of selling your Twin Cities duplex, and want to net as much money as possible in the least amount of time,  call or email me. I’d be happy to help you maximize your return.

 

If You Need To Reach Me, Please Call

said on May 4th, 2016 categorized under: Twin Cities Real Est

Comments Off on If You Need To Reach Me, Please Call

godaddy logoAs of this moment, I am not very happy with GoDaddy.

It seems they decided since I allegedly hadn’t responded to their request about asking me to convert to Office 360, they shut off my email.

Nevermind that I never received this supposed request. And if I had, they certainly didn’t reach out to contact me with the tenacity they use to get me to renew domain names 6 months before they expire.

So, if you need to reach me while they’re using the entirety of the 24-72 hours they allegedly require to retrieve my email out of “the archives”, please give me a call at the number in the upper right hand corner.

And if you’ve had this experience yourself and found a more expeditious route to resolution, please let me know.