Good flip or bad flip

MSN has a must-read article for anyone thinking about flipping houses, Five mistakes that make house flipping a flop. You’ll have to go to the article for the details, but here’s the reader’s digest version:

1. Not enough money
2. Not enough time
3. Not enough skills
4. Not enough knowledge
5. Not enough patience

Thinking about investment property? Contact a buyer real estate agent for help!

Inspection is Essential

According to a recent article by Dan Steward in RIS Media, homeowners can expect to spend one percent of the value of a home on general maintenance. For example, a $250,000 home would require $2,500 per year to maintain. New homeowners can expect to pat 3 percent of the value of their home in the first year. That cost includes furnishing and fixing up a house as well as general maintenance.

Of course those numbers are estimates. To get a better gauge on how much you can expect to spend on a new house, be sure to get a thorough home inspection. As he says, “A good home inspection determines the current condition of the house, offering a report of all the systems and components in need of maintenance, service, repair or replacement.

Often homebuyers have used inspections as a bargaining tool – but to get the most of your home inspection ask the inspector to let you know not only what needs to replaced today but what items will need attention (and how much) in the near and midterm future.

Walk Score

Do you like walking? If so, knowing that your new house is walkable is important. There’s a great web site for those of us who like walking.

Walk Score – type in an address and it will tell you the walkability of your potential home:

My house in St Paul scored 91 out of 100 based primarily on the number of amenities within walking distance. Within a mile of my house there’s a grocery store, coffee house, restaurants, bars, schools, movie theater, park, library, fitness center, drug store, hardware store and shops.

The site also gave me information on my home – such as esitmated value, cost and date of last sale and links to a lot more info. Try it out on your current address or any potentinal address. Even if you're not a big walker it will give you a snapshot of your new neighborhood.

5 Questions for Home Buyers

RISMedia recently ran an article highlighting five crucial questions every home buyer should ask about mortgages and financing before considering a home purchase.

• Why are rates to low?
• Are rates expected to stay low?
• Why do different mortgage surveys come up with different average interest rates?
• What else does a consumer need to know?
• Is now the best time to buy a home?

Check out the article for more information. Although many external signs are pointing to now being a good time - the answers will be different for each buyer. If you feel like you need a little more help gauging your readiness, please contact us at Buyers Real Estate Group.

Housing Market December Update

The Minneapolis Area Association of Realtors just came out with their Minnesota housing supply outlook:

In the overall Twin Cities market, home sellers are now getting closer to their original asking prices than they were a year ago. Dig a little deeper, however, and it becomes clear that it’s only the Single-Family Detached segment that's seeing improvement. The lowest mark for Percent of Original List Price Received at Sale can be found in previously owned condominiums, which post a low mark of 88.6 percent.

Home sales continue to look the strongest in the more affordable price ranges. Homes below $190,000 are selling at a 49.9 percent faster clip over the last 12 months than they did the prior 12 months. Above $190,000, sales are down by 10.5 percent.

That's caused some large differences in our calculation of Months Supply of Inventory by price range. The lower price ranges are extreme seller's markets, while the higher prices ranges still present sellers with challenging conditions.

It’s good news and bad news – but as Minnesota’s largest exclusive home buyer agency, we want to make sure you have the news you need before you make any major decisions regarding a house purchase.

Road to Recovery

According to Steve Havig, president of the Minneapolis Area Association of Realtors, quoted in the Minneapolis Star Tribune, "We are bottomed out. We are on the road to recovery."


The median house sale in the Twin Cities was $170,000; that’s a slight dip from 2008, but not the di[s that we’ve seen in the recent past. Closed sales jumped nearly 70 percent from a year ago to 4,304, thanks in part to the bump from buyers rushing to take advantage of the first-time home buyers tax credit last month.


The number of homes listed has dropped to a six-month supply of inventory; a five-month supply is considered balanced. There are still some issues with lenders who are not anxious for short sale mortgages. And unfortunately with high unemployment, there are homeowners who are still missing mortgage payments. But while the road is rocky, it does seem to lead to recovery.


People have been asking when is the right time to buy – and while we can’t make any guarantees – this could definitely be it.

Minnesota Snow Emergencies

Come on admit it – it’s beautiful out there. Yes, the driving was slow. Yes, It’s chilly. But stop again – it really is beautiful and if you’re going to live in Minnesota you have to remember to stop and look and remind yourself – it is beautiful!

To maintain that sense of calm – be sure to check the snow emergency and plow schedules near your home and office. Most cities have email alerts you can sign up to get to keep you knowledgeable for the whole season:

Minneapolis Snow Emergency http://www.ci.minneapolis.mn.us/snow/
St Paul Snow Emergency & Plowing http://www.stpaul.gov/index.aspx?nid=905

Get 511 Traveler Info http://www.511mn.org/

WCCO school closings http://wcco.com/schoolclosings - every kid’s favorite site

Call your friendly Minnesota home buyer agents when you need the scoop – we’re here to help.