Minneapolis on The Rise: Real Estate

September 20, 2013

Every real estate market in the U.S, never stays the same. Housing is nearly always shifting with market ups and downs that certainly change the way we move forward in selling and buying a home. The good news, statistics show Minneapolis is on the upswing and on the rise!

Many factors will go into determining what the current market trends are in a particular area. The Minneapolis Area Association of Realtors has reported that pending home sales, in August 2013, rose 10.9%. With less than 4 months of supply on the market, we are currently in what some would say is a Seller’s market. This means that home prices are on the rise and with inventory this low, many buyers looking to purchase are finding there is not much to choose from – which tends to give Sellers the advantage when it comes to negotiating the sale price. Current records show, the Real Estate inventory holds 15,773 active properties for sale, which is 9.9% lower then August 2012.

With that being said, more properties are coming up for sale and interest rates are coming in at a 5 week low. So even though home prices are on the rise, homeowners are still looking to sell and Buyers are getting great interest rate opportunities to purchase, which makes this the kind of market we all should be taking part in.

On a side note, foreclosures and short sales still have a presence when it comes to real estate inventory, something to keep in mind when either selling or buying in this market. In August of 2012 foreclosures and short sales made up 35.8% of the Real Estate sales activity, that number is down to 20.7% this year. Making it so the majority of houses for sale are traditional sales, thankfully, no waiting games or crazy addendums attached.

Of course when we take in all this information, we want to remember the current market in each area has its own local statistics, something my team and I are here to provide when you’re ready to sell or buy your new home. Feel free to contact us, anytime.

Chelsea Knutson

Realtor- GRI, ABR, CDPE

763-496-2903

the Better Living Group

Keller Williams Classic Realty NW

Posted in Community /Real Estate News, Updates & Trends /

Appraisals: Who’s Paying for it Anyway?

August 12, 2013

Once you have found the right home and are ready to move forward from your inspection, your lender will then perform an appraisal of the home. Unless you’re paying in cash, this will be a required step for your loan approval process. The lender being used to purchase your home needs to ensure the home you’re looking to buy, is currently valued at the price you have chosen to pay.

With that, an appraisal is typically an out-of-pocket expense for the Buyer and usually occurs prior to closing. The bank will order a third party appraisal company to go out to the property, review the property with its most recent comparables, check current market trends and bring back an estimated value. The appraiser is an individual who’s professional opinion will be one of the deciding factors that will effect the final approval of your loan.

Lenders require appraisals due to the fact that they don’t always come out with the value we all may expect. If your appraisal comes in lower than your purchase price, you and your licensed Realtor will look at the different options to move past the issue. If your appraisal comes in high, your loan will move forward and you’ll know you are purchasing the property for less then what it has appraised for and may have instant equity.

If you have any further questions on the process of buying a new home, or selling a home, please contact me today. I am a licensed Real Estate Professional in the Twin Cities Metro and Greater Minnesota Areas and strive to provide the best real estate service, with the support of my team the Better Living Group, for all of my past, present and future clients. My clients, are my friends.

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Chelsea Knutson
Realtor- GRI, ABR, CDPE
763-496-2903
the Better Living Group
Keller Williams Classic Realty NW

Posted in Community /Real Estate News, Updates & Trends /