South of the River News

July 29, 2009

$8,000.00 up for grabs! The first time home buyer tax credit.

Filed under: Home Tips, Upcoming Event — Tags: , , — Nichole Fredrickson @ 8:37 pm
July 29, 2009
10:00 pm
10:00 pm

With all the buzz about the slumping economy, rebates and incentives, it is hard to believe we need to remind buyers to get started now with their buying process in order to capitalize on the $8,000 first time home buyer tax credit!

If you want to take advantage of the tax credit, you must qualify as a first time home buyer…. this means you must not have been on title on a home within the last 3 years.

I invite you to get started on the process by speaking with the experts at Cornerstone Mortgage Company. The folks at Cornerstone Mortgage are going to be the essential first step in your home buying process. Since home sales are up over 20% from June of 2008, homes that are priced in accordance with the market are going fast. If you find the home you love and are not pre-approved, chances of you getting that home are very slim.

Once you are pre-approved with Cornerstone Mortgage, then we go over your home search criteria and shop for that new home! Most buyers will look for 30-60 days before they find what they are looking for. Once you have the home, it will probably be between 30-60 days before closing.

I anticipate a crazy, busy November with many first time buyers closing on home in order to receive the $8,000 tax credit, so prudent buyers will get started now! This is a wonderful opportunity to cash in big on one of the most important investments you will ever make. Take the necessary steps to insure you give yourself enough time to go about the process.

You can reach Cornerstone Mortgage Company at www.MnHomeLoan.com or through my website at www.NicholeFredrickson.com.

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May 13, 2009

Buyer Beware!

Filed under: Home Tips — Tags: , , — Nichole Fredrickson @ 5:23 pm

With the incredible low housing prices in today’s market and the pinch on the economy putting a number of homeowners in a precarious position, gives way to scammers. When you are surfing the web looking for homes to buy, foreclosures, or discounted properties, beware! Last night I had a client call me in complete excitement. He had found a townhome in Lakeville for $6,600.00! I couldn’t believe I hadn’t heard about it! I checked the MLS system where home listings are posted for Realtor use. What I found was that the home in question had been sold in 2006 for $190,000, but was NOT currently listed with a licensed real estate agent.

I called my client to ask more details about where he had found this amazing deal online. Bargain Network. Apparently, for a $10 weekly fee, you can be first to receive the foreclosed listings from this site. WRONG! They will surely take your credit card information, as well as your $10 a week, but the information they are giving you is anything but listed bargains.

After speaking with teammates on The Minnesota Real Estate Team, I discovered that a few other agents had similar situations come up. One agent even had strangers approach her sellers (before any of the listing paperwork had been signed) stating that these strangers had seen the home for sale on bargain.com and they had cash ready to buy it right now! The seller was baffled! The buyers claimed the home was listed for $57,000. The home in question was about to be listed for sale for hundreds of thousands more.

Another team member had actually paid for the service to find out more of what it entailed. So here is the scoop….

The homes on the site are not listed for sale. If a select few of them are, they are not listed with anyone who represents bargain.com. The site is syphoning information from default notices from somewhere. The site shows the list price for what is in arrears, whether it be taxes or past due amounts on the mortgages. What the site does not seem to take into account is the balance on the existing mortgage, OR the fact that nearly all of the homes listed on the site have no knowledge they are there.

Moral of the story is “If it sounds too good to be true, it usually is.” Anytime you have to pay a premium or reoccurring fee in order to obtain information from a website, chances are you are being scammed. Check with your Realtor to find the properties that are in foreclosure or being offered at discount prices.

There are great deals to be had out there, but there are also people willing to take advantage of others. Don’t get discouraged, if you are realistic about the deal you are looking for, you will find it with the help of a Realtor.

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January 11, 2009

Homeowners Insurance Basics

Filed under: Home Tips, Real Estate Terms — Tags: , — Nichole Fredrickson @ 10:24 pm

Homeowners insurance can sometimes be overwhelming, but when you are buying a new home, take advantage of the time and ask questions to better understand your coverage. Below are just a few tips on understanding your insurance.

Coverage Exclusions: Be sure to ask and watch for any exclusions in your homeowners insurance coverage. Most policies will not cover earthquakes or floods. In Minnesota, earthquakes are not something we often think about, and until lately, floods weren’t that commonly thought about either. Flood insurance is usually available as an add on, but the point is to make sure you know what if any exclusions are in your policy.

Claim Limitations: Many policies are covered for a risk such as a home burglary, but watch for limits on those risks. Most times, there are limits on personal property such as electronics, art and jewelry. If you have items of great value, look into a separate policy for those items.

Replacement Cost: If something were to destroy your home, and you need to rebuild or ‘replace’ it, you need to know how much it will cost to do so. Make sure your insurace is sufficient enough to cover all of those replacement costs. If your home is insured for $200,000 and was destroyed by a tornado, you will only receive $200,000. If you meet with a home builder and they say it will cost $235,000 to rebuild the exact some structure, you are underinsured.

Cash Value: Let’s say your home was destroyed. Let’s say you decided not to rebuild, but to take your insurance settlement and move to the other side of town. Your settlement will be your replacement cost MINUS depreciation. That is the actual cash value. Replacement Cost – Depreciation = Actual Cash Value. Make sure your actual cash value is enough to cover your mortgage balance, moving costs, etc.

Liability: The more you have, the more liability you have. Most policies will cover you if the pizza delivery man slips on the icey sidewalk, or your babysitter breaks a leg trying to keep the kids out of the trees :-) . Expenses like medical care, court costs and other settlements decided on my the courts are usually covered to a certain point. Policies will have a maximum coverage amount for liability. Make sure your liability coverage covers your assets!

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Don’t Fall into 1 of the 5 Most Common Homebuyer Mistakes

Filed under: Home Tips — Tags: , — Nichole Fredrickson @ 10:01 pm

1. Be sure to communicate fully with your lender. Don’t make the mistake of NOT asking ENOUGH questions. You could end up in the wrong loan program or miss out on the best rate or terms. Make sure that before you start shopping for your dream home, you are fully pre-approved.

2. Procrastination! If you find the home you love and really want, don’t wait until it is too late. It can sometimes be tempting in this market to wait it out and see if the listing price gets reduced, or you may feel the need to see a few more to make sure this is the one you want. if you find the perfect place, jump on it. Multiple offers mean you may end up paying MORE for the home than you would have if you would have taken action right away.

3. Don’t try to go it alone. Having a Realtor on your side is priceless. Having a dedicated Realtor that has a team of professionals behind them is even better. If there are problems in the transaction, you will greatly benefit from the experience of a good Realtor. If you have never bought a home before, you may miss important deadlines and details by trying to represent yourself. Working directly with the listing agent isn’t always your best bet either. When ‘dual agency’ comes into play, you can’t be fully represented. Find a buyers agent you can trust, it will make a world of difference.

4. Don’t waste time with junk offers. Knowledge is powerful and there is plenty of it available about todays market prices and market conditions. If you plan on a serious low-ball offer, you may offend the sellers to the point of them rejecting your offer all together. Make your offers solid offers and you will have much better luck than if you end up with 15 counteroffers back and forth.

5. Think about selling the home BEFORE you buy it. Statistics show that the average first-time homebuyer only stays in the home for 4 years before moving. When that time comes, are there any pitfalls of the home that will make re-sale harder for you in the future?

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December 26, 2008

What to Ask Your Lender

Filed under: Home Tips — Tags: — Nichole Fredrickson @ 10:55 am

Lenders are easy to find. A trustworthy, qualified lender is not as easy to find. As one of the single largest purchases you will make, you need to be sure you are getting a mortgage that is good for you. Finding a loan that fits you is imparative.

Here are a few of the things you will need to discuss with your lender:

1. What are the most common mortgages you offer?

2. Which type of loan is going to be the best for us and why do you suggest that loan?

3. When it comes to interest rates, closing costs and other loan fees, are any of them negotiable?

4. Is private mortgage insurance going to be required with my loan? If yes, is there a minimum time frame that is required to keep that mortgage insurance? How much with the private mortgage insurance cost me up front?

5. Will your company service the loan or will it be sold on the secondary mortgage market?

6. Will I be required to escrow insurance or property taxes? If yes, will I ever have the opportunity to discontinue that escrow?

7. How long is my rate locked in? What happens if rates go down before closing, but after I have locked my loan?

8. What is your normal loan approval process time frame?

9. How long after I get a fully executed purcase agreement before you will have the loan ready to close?

10. Will my loan have any prepayment penalties if sell my home before a certain date? What about if i refinance before a certain date?

All the questions above are important questions to ask to better understand your mortgage. The Minnesota Real Estate Team has had great experiences with the experts at MN Home Loan Partners. You can reach them at www.mnhomeloan.com.

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December 25, 2008

10 Questions to Ask Your Home Inspector

Filed under: Home Tips, Real Estate Terms — Tags: , — Nichole Fredrickson @ 10:55 pm

Having a home inspection performed is an option that every home buyer has when in the negotiation process of the purchase. Not only does a home inspection allow you to get a closer look at the home and any problems that the home may have, but it is a great way to get to know your new home.

Allow a few hours to go through the whole inspection process. Before you have your prospective home inspected, there are a few things to ask your home inspector.

1. Are you a current member of the American Association of Home Inspectors?

2. Are you licensed with the State of Minnesota as a home inspector? How long have you been licensed?

3. In the average year, how many home inspections do you perform?

4. In regards to insurance, do you carry Error and Omissions insurance? Can you provide a copy of your insurance policy?

5. Do you have a list of past clients that I can contact?

6. Do you provide any guarantees on your inspections?

7. What does your normal inspection cover?

8. Do you provide a full report after the inspection? How long until I receive the report?

9. How long do you expect the inspection to take?

10. How much does the inspection cost?

You want to make sure that the inspector you use is licensed, and well versed in the type of home you are purchasing (condo, single family home, duplex, etc).

We work with a number of excellent home inspectors that have done amazing jobs for our clients. Feel free to contact me if you would like the contact info for them.

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December 15, 2008

Carbon Monoxide Detector Law

Filed under: Home Tips — Nichole Fredrickson @ 8:54 pm

Some of you may have missed the buzz or simply ignored it when you heard it, but i thought now is as good of a time as any to remind you :-)
Don’t worry, it isn’t that bad. The carbon monoxide alarms can be battery operated or plug right in to an outlet. Prices have come down on many of the units. In fact “Kiddie” and “Home Hero” brands have models available with the carbon monoxide alarm and smoke detector in one unit. “Kiddie” runs just under $50 and will fit in many of the standard smoke detector bases already attached to your ceiling. “HomeHero” is also just under $50 and is NOT hardwired, perfect for existing homes that still have the battery operated smoke detectors. You can find them at Home Depot which has stores in Burnsville and Apple Valley, as well as Shakopee.

The new carbon monoxide (CO) alarm law requires that “every single-family dwelling and every dwelling unit in a multifamily dwelling” have “an approved and operational carbon monoxide alarm installed within ten feet of each room lawfully used for sleeping purposes.” (See MN Stat. 299.51) This law was effective as of August 1, 2007 for newly constructed homes, and just became effective August 1, 2008 for all existing single-family dwelling units. It becomes effective in August 1, 2009 for existing multifamily dwelling units. The alarms must be an approved device (conforming to UL2034 standards), and may be hardwired, plugged in, or battery-powered (if attached to the wall).

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