Puppy Tales

Last July I lost my beloved Ellie Mae, my golden retriever to seizures. In August we welcomed a new dog into our family. Buddy Boy has a "robust personality" and he keeps us on our toes. He is a Red Tick English Coonhound, weighs about sixty pounds, and when he stands on his back legs he can rest his front legs on my shoulders. (I am five foot three inches)

Last week I baked a chicken breast, left it to cool on the range, went to go do some work on my computer, and when I came back all that was left was a few crumbs and very satisfied looking Buddy. He loves to go in the car with me, and when I do not have clients, or they choose to drive their own car and I know that they are dog lovers, he gets to go with. I am trying to teach him to read directions so he can help me find the houses!!! I am hoping to post his picture on my blog, so keep looking as he is very photogenic. I have many "Buddy" stories and will keep posting them.

Submitted by exclusive home buyer agent, Renei Schmitz

Budget for Home Maintenance

You’ve found the perfect house. You want to get the offer in and set a closing date before the end of the March. But before you decide on an offer – don’t forget to budget in the cost of maintaining the new home.

RIS Media reports…

According to industry standards, homeowners should have 1% of the purchase price of their home in savings for improvements and surprise expenses. While this minimum will help ease through maintenance costs, a 2-3% cushion is far more prudent.

As RIS Media points out, a home inspection will help considerably. It should give you a heads up on any major, and some minor repairs or remodeling. They also point to a great site (Living with my Home) that will help you get a good handle on what needs to be done – by you and when you need to call in the professionals.


Submitted by exclusive home buyer agent, Mary Rugani.

Spring Market Predictions

April showers bring May flowers – but do we have any idea of what spring will bring to the housing market? Due to cancelations of the tax credit programs and programs that have kept mortgage rates low, the Star Tribune reports some dark predictions:

"I think we'll be bumping along the bottom," predicts Minneapolis-based Wells Fargo economist Scott Anderson. Anderson said expiration of the programs could slow sales activity, drive down home values and push mortgage rates up.

The National Association of Home Builders is predicting that single-family home sales will drop 12 percent nationally this summer.

Some elected officials, including U.S. Rep. Keith Ellison, are campaigning to continue programs that have bolstered the housing market, but that is not expected to happen.

If you’re a home buyer, now is clearly a good time to buy. If you are just watching the market, this spring and summer could be interesting times.

Submitted by exclusive home buyer agent, Mary Rugani.

Don’t make the rookie home buyer mistakes

We take your home purchase very seriously. We want you to be happy on the day of closing – but also six months or five years later. We Don’t want to make the quick sale if that means you won’t be happy. So we’re not afraid to point out that your dream house is next door to a frat house or that we think the current owner has a cat for a reason. We know the ropes and we want to share our expertise with home buyers. So that you won’t make any of the 10 Rookie Home Buyer Mistakes Avoid highlighted by a recent article in the US News & World Report:

1. Not checking your credit report and score
2. Not getting preapproved
3. Not creating a long-term budget
4. Forgetting about the hidden costs
5. Not using professional help
6. Picking your real estate agent and lender blindly
7. Thinking you'll get everything on your "wish list"
8. Not keeping your feelings in check before hiring a home inspector
9. Not researching your neighborhood
10. Not considering the resale value of your home

Submitted by Minnesota Home Buyer Agent, Mary Rugani

February The Skinny

Thanks as always to the Minneapolis Area Association of REALTORS for their latest video update on the Minneapolis / St Paul Housing market. At the end of January 21,000 homes for sale, which has stabilized home prices. In fact this is the first time in three years that prices have been better this year than the last.

The Federal homebuyer tax credit and low mortgages have been a boon to the market. Unfortunately neither of these will go on forever.

Garden Fever

As I look out my kitchen window and see my snow covered back yard I am getting gardening fever. I just got the spring catalog from the nursery that I buy my plants so I know spring is around the corner and the garden planning begins.

It is always nice to see what new plants they will offer this year. Right now all I have is some plants that are the remnants of last year garden, the birds and squirrels will eat what they can and the rest will be raked up when the snow melts and the time is right to clean up the garden for this year’s plantings.

I have a perennial garden which means that every year I am eager to see what plants have made it through the winter. Even though I buy plants that are winter hardy in our area, they don't always make it. So now I count the days until the snow is gone, I can buy more plants and watch the wonder of my garden.

Submitted by Buyers Real Estate Group REALTOR Renei Schmitz

Cities Buying Homes

According to the Minneapolis Star Tribune, in the last three years, Minneapolis has spent $9.4 million acquiring 220 properties and St. Paul has spent $8.5 million acquiring 205 properties. Cities are buying up foreclosed properties to save the neighborhoods. Many of the homes had been purchased by out of town investors and landlords. They sold to buyers who qualified only for the most precarious mortgages. The buyers, banks and mortgages got into trouble the housed were abandoned.

An abandoned home can wreak havoc on a neighborhood. In the best case scenario, it lowers the values of neighboring homes. In the worst case scenario, the houses are taken over, used for illegal purposes and become a danger to the neighbors. SO the cities have stepped in .

Minneapolis is trying to avoid owning many properties, so it's using the bulk of its NSP funding for nonprofit and community development groups to buy and rehab houses. The city will buy and knock down some buildings that aren't worth saving and "banking" the land until it can be redeveloped.

By contrast, St. Paul is taking ownership of abandoned and foreclosed properties to have better control over who will redevelop them. In some areas, the city is trying to put several parcels together for larger projects.

Both cities are using some of the money for home-buyer assistance programs.

Submitted by exclusive buyer agent Mary Rugani.

Tax credit for military

Thanks to the National Association of Home Builders for an update on the special rules for members of the military, the foreign service and the intelligence community…
Congress has acknowledged the unique circumstances affecting members of the military, the foreign service and the intelligence community by making the following exceptions that apply to both the $8,000 tax credit for first-time home buyers and the $6,500 tax credit for repeat home buyers.

Exemption From Tax Credit Recapture Rules

• Typically, homes that are sold or that cease to be used as a principal residence within three years of the initial purchase are subject to recapture of the tax credit.


• However, qualified service members who sell or move from a tax credit home within three years of the initial purchase due to official extended duty are exempt from the recapture rule.

Extension of Tax Credit Deadlines

• The home buyer tax credit is available for qualified purchases with a binding sales contract in place on or before April 30, 2010 and closed by June 30, 2010.


• However, for qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011.

Definitions

• “Qualified service member” means a member of the uniformed services of the U.S military, a member of the Foreign Service of the U.S., or an employee of the intelligence community.


• “Official extended duty” means any period of extended duty outside of the United States for at least 90 days during the period beginning after December 31, 2009 and ending before May 1, 2010.

Submitted by exclusive buyer agent Mary Rugani.

2010 First Time Homebuyer Mortgage Program

Thanks to Senior Loan Officer Paul Lundeen for coming up for some great tips for first time homebuyers.

“Minneapolis/St Paul City Living” 2010 First Time Homebuyer Mortgage Program

Highlights:
Current Rate:

• 4.75% - No Downpayment Assistance Loan
• 4.99% - Includes 2% Downpayment & Closing Cost Assistance Loan

Loan Types – FHA or VA ONLY

• Maximum Acquisition Cost Non-Targeted Area 1 Unit = $376,870
• Maximum Acquisition Cost Targeted Area 1 Unit = $369,160

Income Limits:

• $83,900 Non-Targeted Areas
• $92,290 Targeted Areas

Downpayment Assistance Loans Available

• 0% interest loan that is forgiven on the 7th anniversary of the loan.
• Prior to the 7th anniversary loan needs to be repaid when the primary mortgage is paid off; the home is no longer the primary residence, or when the home is sold or refinanced.
• Recapture Tax applies

Must be a first time home buyer or have not owned a home in the past 3 years
Buyers must owner-occupy the property
Seller paid closing costs allowed per program guidelines
May utilize one-time $8,000 federal tax credit until deadline
620 Minimum credit score
Fully executed purchase agreement required before reserving funds
Limited funds
Required 9 Hour Homebuyer Education

• Register at Minnesota Home Ownership Center
• Website: www.hocmn.org/
• Phone: (651) 659-9336

Paul Lundeen
Senior Loan Officer
Bell Mortgage
Direct: 952-374-6107
Cell: 952-221-6321

Why buy a home now?

Thinking about buying a home? RISMedia is offering three compelling reasons that it might make sense to buy your home now – or at least very soon.

1. Mortgage rates are blissfully low, and that may not last.


2. The home buyer tax credit expires on April 30, 2010 and no one knows if Congress will renew it a second time.


3. There are indications that home prices are near a bottom in some areas and may actually be rising a bit.

Read on for more details or contact an exclusive home buyer agent. We special is looking at the market with you, the home buyer, in mind.

Submitted by Buyer Real Estate Group REALTOR, Mary Rugani.

Carbon Monoxide Reminder

Yesterday on the news we were told of a lady in northern Minnesota that was killed by carbon monoxide poisoning as she was sleeping. We are all aware of the importance of having smoke alarms, but the carbon monoxide detector is so very important to alert us if there is a problem with the furnace or hot water heater, or any gas combustible component in your home. Co detectors are not expensive, they can be purchased at any home improvement store or hardware store. I recommend one on each level of your home, and I also have one in my bedroom. CO is odorless and colorless and can overtake a person quickly. Take care of your family and yourself and install CO detectors if you do not have them.

Submitted by exclusive home buyer agent Renei Schmitz.

Change takes time

Change Takes Time and Commitment is a recent blog post by Minnesota Association of Realtors that talks about the importance of getting involved with local politics, especially when it come to Mortgage Interest Deduction and the deductibility of property taxes. Here is his advice:

Last session, one of the ideas that was discussed and passed in the House
of Representatives was elimination of the Mortgage Interest Deduction and the
deductibility of property taxes on your Minnesota income tax. The DFL controlled
Minnesota Senate did not pass a bill with this language and Governor Pawlenty
said he would veto the legislation if it made it to his desk.

So why worry? The Governor will be moving on to other activities next
year when the largest deficit in state history will need to be filled. The House
of Representatives and Senate are both up for election this year and the future
leadership of the House is in question. Last week, NIAOP came out with an
editorial saying that before the legislature focuses on tax increases or
spending cuts they should look at tax expenditures - this means tax breaks in
legislative lingo - especially deductibility of the Mortgage Interest
Deduction!

So why attend the Caucus? The caucus is not just about who should be
the next Governor, it is the area where regular citizens can let the political
parties know how they feel about issues. This would be a perfect arena to tell
all political parties to "Just Say No" to ideas eliminating the Mortgage
Interest Deduction/property taxes. By bringing the issue forward within a caucus
of your neighbors, you can heighten their attention to the issue and send a
message to both political parties that elimination of the Mortgage Interest
Deduction is not an acceptable direction to Minnesota's homeowners.

You can find out more on the caucuses at the Secretary of State's
website: http://www.sos.state.mn.us/index.aspx?page886

://www.sos.state.mn.us/index.aspx?page886.