Home Buying in 55122>Question Details

Cequal, Home Buyer in Minneapolis, MN

Is this a good time to buy? Buying in Eagan,mn

Asked by Cequal, Minneapolis, MN Sat Mar 26, 2011

My wife and I are looking at buying a home in eagan 55122. The home is close to brown bear trail. Is this a good time to buy? I notice on trulia that prices this area are down from their high's in 2006. Should we wait a little longer?

Also we have a choice of updates to make on the home like a fence,deck, Sheetrock the basement. What updates make the most sense and will return the higwhest value?

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Answers

14
Susan Hofflander’s answer
WOW! Things have changed considerably since I first responded to this question! We're now at the tipping point of it being a seller's market. Doesn't mean prices have jumped or anything, we've just sold a large amount of inventory that puts the sellers in a better negotiating position.

Good luck!
0 votes Thank Flag Link Sun May 20, 2012
Hi Cequal,

I agree with the realtor professionals that have answered you so far. I want you to be aware of our conventional loan program that allows you to build in any repair or remodel costs into your 30 year fixed loan. I would also like you to be aware of our pre-approval process & how it will give you the advantage in a multiple offer situation. Buyers that go through our full approval process have a competitive edge when submitting an offer with multiple offers on the table. The human underwritten borrower has a loan commitment before a property has been found contingent upon the appraisal & clear title work. This allows us the ability in most cases to close within 7 business days of a full loan submission. The human underwriting turn time in most circumstances is 6 hours after full loan submission.
0 votes Thank Flag Link Wed Oct 16, 2013
Buyers are always "waiting until the market hits the bottom" before buying... But think about it, you will only know when the bottom has passed because prices have started to rise again and you've missed it.

Interest rates have never been this low and doubtfully will be again in our lifetime. If you are ready, willing and able to buy, now is the time.

On the flip side, sellers are wanting to wait until the market hits a peak before selling; but yet again you will only know where the peak is after it has passed by you!

When you select a Realtor to help you buy your next home, remember that they work for you with your best interests in mind. When we represent a buyer, typically we do it for "free", the buyer normally doesn't pay for our services! We are paid by the seller once we find you the home you love and the transaction closes. Be sure to ask your Realtor about compensation so you know if you will be expected to pay anything or not.

Thomas Drayton
Realtor, Keller Williams Realty
Eagan, Mn
http://tdrayton.kwrealty.com/
0 votes Thank Flag Link Sat Jan 12, 2013
You may find this video helpful if you are serious about purchasing a home.

You may also want to check out the website

http://www.theaffordabilitybubble.com

There is a good discussion about the current market and interest ratesl.

Or you could call me at 612-720-2549 and I would be happy to chat with you. No cost and absolutely no obligation.

Keith
0 votes Thank Flag Link Sun May 20, 2012
Each home stands alone, anytime is a great time purchase real estate you receive annual tax advantages

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Mon Mar 28, 2011
Cequal,

Right now is a fantastic time to purchase a home based on the current market conditions and how far prices have come down since 2006. I will say that if the home you're looking to purchase is above the $300,000 price point you may want to consider waiting until the end of the year. Homes in that price range and above are still decreasing in price and it is expected it will take a little longer for that price range to hit the "bottom" and level out. Another benefit to purchasing a home right now is the fantastic interest rates and I don't believe they will stay this low for years to come, in fact we could see a slight increase in the interest rates over the next couple of months and by the end of the year you might notice a significant difference.

With regards to your home improvements, depending on what you want to do to the basement I would recommend first doing sheet rock and possibly finishing the basement to add square footage to the home. Adding square footage will help increase your potential selling price down the road (when you're ready to sell). I wouldn't shy way from a deck as well but make sure it is done properly and attractive. The fence is nice but most of my buyer's say it is not a make or break item for them, it is just something that is nice to have. I hope I have answered all of your questions, if you have additional questions or need help starting your home search please don't hesitate to contact me, I am more than happy to help. Have a great day

Thanks,
Hillary Slama
Metropolitan Home Team at ReMax Results
952-223-0603
hillary@metropolitanhometeam.com
0 votes Thank Flag Link Mon Mar 28, 2011
Yes, Cequal, this is one of the best times to purchase for all the reasons previously mentioned; low rates, prices and high inventory. Additionally real estate experts say the market goes in six year cycles. We are in the sixth year since prices leveled off in fall 2005. Additionally if you have concerns that prices will decrease further, consider that if prices drop another 10% and interest rates increase just 1% it is the same monthly payment. And it is very likely rates will increase.
Regarding home equity building; I would recommend a deck. That is a universal expectation for buyers. If you wish to make other improvements consider the length of time you wish to remain in the home as very few improvemenst are returning 100% per the National Association of Realtors 2010 report. And of course adding square footage adds return on investment with a couple caveats. 1) The materials and workmanship should be consistent with the current quality of your home. 2) Have a comparative market analysis by a real estate agent to determine your likely return on investment before beginning your lower level project. If you are looking primarily for return on investment, consider making double principal payments to reduce your mortgage. If you do the calculations on the interest savings you may gain as much or greater without the work. Investing your time in chosing a realtor to assist you with their experience will benefit your bottom line. See before for a link to the full Cost Vs. Return Analysis.
Web Reference: http://www.AndreaWalsh.com
0 votes Thank Flag Link Sat Mar 26, 2011
I'm not sure if my full answer made it through before, but the opinions here all point to an overwhelming sense that now is a good time to buy. Rates are low, prices are low and the rent versusbuy scenario will generally lead you to the sense that buying is a great choice right now.
0 votes Thank Flag Link Sat Mar 26, 2011
This is a good time to buy. Prices are down, and interest rates are low. This is one of the best times to buy in years. Good luck.
0 votes Thank Flag Link Sat Mar 26, 2011
You've already gotten some great answers, I just want to add two things. Be very thoughtful on the updates you do to your home, how much you spend and the material selections you make. I am more than happy to do give you free consultation and price opinion/strategy for your home, you can call or email me directly when ever you would like. Before you make a final decision on a listing agent for your home, make sure everything the agent leads you to believe that they will do to market your home is clearly spelled out and check the internet to see how they are marketing there other listings.
0 votes Thank Flag Link Sat Mar 26, 2011
Yes this is the best time ever. Prices are low, mortgage rates are low, selection is high. The big changes in the near future are going to be in mortgages. Down payment minimums are likely to increase, rates will increase, mortgage insurance will increase so even if prices dip they won't make up for the increased costs in financing.

Make sure you hire an experienced Realtor who not only explains the CMA to you but can also calculate a market trend analysis for your area. I am finding in my negotiations with sellers that our Trend Analysis Tool is more compelling to them then the standard CMA and more helpful in negotiating a lower price for my buyers.

Updates that return the highest value: kitchen and bathrooms. Finishing a family room gives you more total square feet to market. Plan any improvements with your Realtor to make sure the return is there. Any improvements that don't have at least an 80% return should be considered carefully.
0 votes Thank Flag Link Sat Mar 26, 2011
I think its a great time to buy, prices are low, selection is good and you have strong negotiating power. Its very hard to time the bottom of the market becuase by the time you see prices going back up you have already missed it. If you are in a position to buy go ahead.
Web Reference: http://www.lennyfrolov.com
0 votes Thank Flag Link Sat Mar 26, 2011
Hello Cequal! It sounds like you're buying a new construction home, am I right? Yes, this is a good time to negotiate because there are far more sellers wanting to sell than there are buyers wanting to buy. As far as waiting, I'm not sure that's the best way to go. I have buyers who "waited" thinking they would get a better deal in one building, and the ones they wanted all got sold out from under them! Minneapolis is one of the areas where the market is healthier than other places.

Another important thing to consider is having an agent on YOUR side representing your best interests. It will not cost you anything out of pocket because agents get paid from the proceeds of the transaction. Consider talking to a good buyer agent if it's not too late. If you've already been to several "open houses" at the location where you're considering buying, it maybe too late for you to have your own agent. You must have your agent with you at your first visit to the location to have your own representation. Otherwise, you must allow the agent representing the builder to represent you, too. It's not an ideal situation since they are there to get the best price and terms they can for their boss, the builder, not you.
0 votes Thank Flag Link Sat Mar 26, 2011
Cequal,

The only losers in this market are those individuals that are not staying current and exploring real estate options....this doesn't mean that it's the right time for every individual to buy, but if you aren't actively looking, the perfect opportunity is likely not going to find you.

Is it the right time......absolutely, for the right people.
Our best recommendation, keep your options open by remaining current with your local market.

Good luck,

Bill
0 votes Thank Flag Link Sat Mar 26, 2011
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