Stay Informed on the Local Market

Your real estate agent is someone who’ll be working side by side with you on one of the biggest financial moves of your life. Your agent will be negotiating with you, educating you and helping you buy or sell your property. It’s absolutely crucial to make sure you choose a good real estate agent. In this article, we’ll go over 6 powerful tips for choosing a good real estate agent in the Twin Cities area.
Tip #1 - Look at Their Website
You can tell a lot about a real estate agent based on their website. This is where they’ll “showcase” the highlights of their service.
What sets them apart from the competition? How long have they been in business? Browse your potential agent’s website and see if who they are resonates with you.
Tip #2 - Trust your first impression
A working relationship with a real estate agent is based on trust. Trust that your agent will have your best interest in mind, not just a quick commission.
Often times your first impressions will be dead on. Can you trust this person? Do you feel comfortable doing business with this person? Usually you’ll be able to answer these questions in just a 15-30 minute conversation.
Tip #3 - What will be your marketing plan (Seller) or negotiation strategy (Buyer) for me?
A good real estate agent will have a plan for getting you the best price possible, whether you’re buying or selling.
When you’re considering working with an agent, ask them: What will be your marketing plan or strategy for negotiating for me?
Tip #4 – Work with a Residential Expert
If you’re looking for an agent in the Twin Cities area, generally you want to work with someone who knows the area very well.
Make sure your agent has been local for some time and has completed several transactions in the local area. Your agent should have a good idea of the approximate home values in all the different areas of the city.
Tip #5 – How reachable are you? What will working with you be like?
What hours does your agent work? Will you be dealing directly with your agent, or will you have to go through an assistant every time?
How long will you have to wait each time you make an appointment? Can you call up a couple days before, or do you have to make an appointment a week in advance?
Know what it’s like to work with your agent before you decide whether or not to move forward.
Tip #6 – Can Your Agent Provide References?
Satisfied clients will oftentimes provide references, letters of recognition or a phone number where other potential clients can call to see what it was like working with this agent.
If your agent has been in business for some time, they should have some references you can look at. Look into these references and see if your agent is someone you want to work with.
If you’re considering an agent in the Twin Cities area, it’s important to work with someone who’s experienced and knows the local area. If you don’t already have an agent, feel free to give me a call for a free consultation on buying or selling your home. I can be reached at 612-581-7313 or steveschneeberger@edinarealty.com.

Steve Schneeberger with Edina Realty Explains What To Expect At Closing

When a home sells things may differ slightly from state to state, but as a whole the majority of the details remain the same.  Here is an idea of what you can expect at your Twin Cities closing.

Depending on what state you reside in you may be closing at any number of locations.  For example, in some areas you close at a title office, in some cases an attorney's office and sometimes it may even be at one of the real estate agent's office.  Regardless of where it is, the general rules are the same.  Both buyers and sellers must have photo identification with them. 

It is extremely important that buyers not take out any new credit or make considerable credit card charges before closing.  Your loan approval depends on the fact that nothing new occurs before you close.   Any significant shift in debt can kill the whole deal.

Sellers should come to closing with all house keys.  Also, make sure to tell buyers where all garage door openers are.  If there is a home alarm, tell them how to set it and how to disarm it so they won't accidentally set it off.

If a buyer is putting money down they will need to bring that amount to closing in the form of certified funds.  This typically means a certified check or cashier’s check from the bank.  Personal checks cannot be accepted- regardless of whether the money is in your checking account.  You will need to verify with your Twin Cities loan officer exactly how much you will need.

If you are signing as power of attorney for someone make sure what documentation you will need ahead of time.  For example, if a document has to be notarized and it isn't it could delay the closing or cause it to reschedule completely.

Make sure before the day of closing that you have gone over the settlement statement with your loan officer.  You want to make sure you know all of the numbers that you will see on the paperwork so there are no surprises.  Also, make sure your loan officer can be contacted in case there are any questions.

For detailed information on how closings work in the Twin Cities, contact real estate agent Steve Schneeberger at 612-581-7313.

Staging your house can drastically increase your chances of a fast sale and may also give you a nice boost in your selling price. It takes some effort upfront but its well worth the effort. In this article, we’ll go over the basics of staging your home. In just a few minutes, you’ll know exactly how to stage your home for the fastest and most profitable sale.
Step #1 – Clean Out Your House
The first and often most difficult step is cleaning out your house. All your personal belongings apart from furniture that you’re using to stage your house must go.
If you haven’t moved in to your new house yet, a great strategy is to rent a storage unit. A storage unit is usually very cheap and you can store all your belongings until you’re ready to move.
Step #2 – Arrange Your Furniture
Arrange your furniture in a way that really showcases the house. When in doubt, an empty room is better than furniture that doesn’t look good.
Make sure that there’s enough light coming into the rooms. Pull back your curtains and bring in lights if the lighting is dim.
One thing that’s often neglected with home staging is the smell or scent in the rooms. Make sure your house smells nice. Candles or air refreshers can make a big difference.
Step #3 – Have Your House Critiqued
Have your real estate agent look over your staging and give you a good critique. A good real estate agent will know exactly what to look for in staging a house.
Once you’ve had your real estate agent look over your house, make the changes that he/she recommended. This review process can often take a bit of time, so get started as early as you can.
Finding a real estate agent in the Twin Cities that you know you can trust can be a challenge. If you haven’t found an agent that works for you yet, feel free to give me a call for a free consultation. You can reach me at 612-581-7313 or steveschneeberger@edinarealty.com. You can also learn more about me at www.steveschneeberger.com.

It's a hard fact but although lenders may be friendly, they are not your friend. This doesn't make them bad; it just means that they - like you - are engaging in business, not social relations. Though they will often decide in your favor on a borderline case if you have a long-term working relationship, this is not charity, but an intelligent business judgment. They have good reason to believe you will be able to repay the loan at a profit to them.

That last sentence is key to understanding — and avoids much frustration with — lenders. They need assurance that the loan will be repaid and they need some reasonable expectation they will make a profit. A lender will try to fulfill those two criteria the same way anyone would — by looking at past history and current facts.

Past history means: Credit history, including number and size of loans taken out, repayment history and so forth. FICO scores and other hard data are available in abundance and will be looked at.

It also includes income history — how much profit have you made on other investments and over how long a period? They'll examine income statements and at least three years of tax returns. They'll want a full accounting of outstanding debt and any legal judgments gained or issues in progress.

Overall, this is summed up in one word — experience. Have you previously shown you can and will repay a loan, which requires not only good character but good business judgment? Real Estate is a tough market, there's a lot of competition because there's a lot of potential for making money. The lender will want to know you can make some, so they will too.

Current facts get examined with equal care. The lender will examine the appraised value of a property on which they're considering loaning money. Banks as a rule do not lend based on collateral, they are looking for cash flow and positive income. They'll usually finance no more than 75% of the appraised value of the property.

Most lenders will put a limit of 50% LTV (Loan-to-Value) on undeveloped land, for example. If the property contains commercial structures, they'll want to know what income can be expected from those businesses — whether it's in the form of rent from a multi-dwelling apartment complex or lease income from small business owners.

And, of course, profit is income retained AFTER expenses, so they'll need to know how much it costs to maintain the land and commercial structures. Insurance, repairs, taxes and a host of other costs come along with any property ownership. The lender will want to know you can pay these AND pay their interest charges.

Most lenders will strive for shorter repayment periods, 20-year fixed is on the long side for many investment loans, and often a balloon payment after five or ten years is required. Longer terms benefit you because you can avoid paying for new appraisals, origination fees and other financing costs.

If your lender seeks a shorter period, you should try to arrange re-pricing at the end of five years, rather than having to come up with a large amount of cash. Something along the lines of "prevailing prime rate plus a 1% premium" is often an acceptable alternative.

Lenders may not be your friend, but neither do they have to be an enemy — they can be a kind of partner. Keep in mind, everything is negotiable.

There is a lot of free information available to you about buying, selling or investing in Twin Cities real estate. For complete information about the Twin Cities real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Twin Cities real estate. So please feel free to contact me with any of your mortgage questions and I will me more than glad to answer you queries. Call me on my cell at 612-581-7313 or email me at steveschneeberger@edinarealty.com.

3 Things You Must Know About Hiring a Contractor in the Twin Cities, by Real Estate Expert Steve Schneeberger

If you're a seller or investor who wants to get the best price for your property, chances are at some point you're going to have to work with a contractor. In this article, we'll go over 3 essential things you must know about working with contractors to ensure the most affordable, most timely, and highest quality work.

Tip #1 - Be Very Specific

When you're requesting a bid or when you're talking about a job with a contractor, be very very specific about what you're looking for.

After you've agreed on a number, you should also be very meticulous about being specific in what you put in writing.

Taking this precaution will ensure you get exactly what you want, no more and no less.

Tip #2 - Find a Good, Reliable Contractor

Speak with several contractors before you decide on one for sure. Get a feel for the quality of the contractor's quality of work and integrity. Don't just decide based on price.

If your contractor is experienced, they should have references you can check. Check them.

Once you find a contractor you might want to work with, double check their license with the Secretary of State website. Remember, you're entrusting your property with this person, so it absolutely makes sense to do careful due diligence beforehand.

Tip #3 - Payment Tips

In general, it works in your favor to pay your contractor by project rather than by hours. A contractor can estimate how many hours it will take to complete a job, but that's just an estimate and the contractor can always exceed that estimate.

Rather than overpaying because your contractor billed by hour, agree to pay per project only.

Do not release payment until the job is complete. Once a contractor has been paid, often times they won't finish the job or the finished work will be of lesser quality. Even if the contractor asks, do not pay release payment for the job until the work is complete.


There is a lot of free information available to you about buying, selling or investing in Twin Cities real estate. For complete information about the Twin Cities real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Twin cities real estate at www.steveschneeberger.com. Please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. Call me on my cell at 612-581-7313 or email me at steveschneeberger@edinarealty.com.

What Is My Home Worth? Twin Cities Real Estate Agent Steve Schneeberger Helps You Find Out

You can easily find out the value of your MN home by contacting one of several people. But which person you end up calling will depend on what you need to know the value for. You see, each situation can require a different response.

For those who are refinancing, your lender will take care of the value by sending out an appraiser. They will use comps of your neighborhood to determine what it is worth to determine whether there is sufficient equity to complete the loan. Unfortunately, with the downturn of the recent housing market, there is a good chance there is at least one foreclosure in your neighborhood. If this is the case, and if it is a comparable home to yours, then the sale has to be used to equate the value. This would bring the value down more than if it were a regular seller and not a bank.

With a refinance, sometimes the value can be slightly inflated to give the lender enough room for the deal. This has not been as prevalent in the past few years, but some refinances still inflate the numbers a little for their benefit.

If you are about to lose the home and you don't have much time then there are several ways to go about this. An investor will pay you a reduced price, if he feels that he can get it for a low enough price and still have room to resell it for a profit. If you have to sell quickly and have some equity there are plenty of investors out there that would be glad to take it off your hands. The other option is to greatly reduce the home and sell it yourself, just to get out from under it.

But if you are a typical Twin Cities seller, not under distress, and looking for a fair market value you can accomplish this by using either an appraiser or a real estate professional. An appraiser will use the same comparables as a real estate agent, but will charge you for their time. A real estate agent cannot give you an actual value, but they can give you a market value based on what it should sell for taking into account what has already sold.

To find the current market value of your home, contact Twin Cities real estate expert Steve Schneeberger at 612-581-7313 or via the website www.steveschneeberger.com.

Different Ways To Insure Your Home: A Primer From Real Estate Expert Steve Schneeberger

When buying a Twin Cities home you want to makes sure that you are protecting your largest purchase. There are several things that you can do to make sure you are adequately protecting your investment. Here are a few things you are either required to have or need to consider.

First, you need to have homeowner's insurance lined up before closing. This covers fire, theft and liability.   Lenders want to make sure that their investment is protected and will make it a requirement to close. Typically, buyers contact their current insurance carrier that they have automobile coverage through, but coverage can be obtained anywhere. Many times they will offer a multiple policy discount.   If you have specific items you would like to add you can talk to your insurer about customizing a plan.

Along the same lines you may need to consider flood insurance. This will depend on where your home is located and if it is considered to be in a flood plain. Your agent can verify this for you. If it has been designated as such, your lender may require it. The coverage levels vary so it is best to talk to your carrier about this option as well. After the Katrina disaster, this insurance has become a hot topic of concern.

Next, you will want to look at title insurance. This is a one-time fee paid at closing that protects your home against title issues. It is relatively inexpensive and is well worth the money for what you get.

Home warranties are another area that you should look into. This coverage is a voluntary policy that you can pay for at closing. On new homes your builder will typically cover concerns for the first year. But what if he goes out of business? Then you will be left with no one to go to. On resales, there won't be anyone to call so you would be left taking care of concerns on your own. This coverage is issued in one year increments and covers the major components of the home. There are additional areas that can be added- each for a flat fee. If you decide that you no longer want it you simply do not renew it and it expires.

If you want more extensive information on protecting your home, contact Twin Cities real estate professional Steve Schneeberger with Edina Realty at 612-581-7313.

Eden Prairie earns the honor of best place to live in the U.S.  according to Money Magazine.  Plymouth made the top five.  Apple Valley and Eagan also were included in the list.  Watch the video and see the whole story.

http://money.cnn.com/video/pf/2010/07/09/m_best_places_eden_prairie_mn.moneymag/

Pending sales for the last week in June were down 46% compared to the same week last year.  New listings were also down but only by 6%.  Check out the full report prepared by the Minneapolis Area Association of Realtors.

http://www.mplsrealtor.com/downloads/market/WMAR/wmar.pdf7

Real estate auctions were once considered to be the last resort to unload unwanted junk properties onto an unsuspecting public. With the addition of broader portfolios and better marketing, however, the use of auctions is now gathering momentum in the Twin Cities as an effective sales tool in the real estate community.

One recent Sunday afternoon in Santa Clara, Calif., Maria Hagan of Dividend Development Corp. sold $8.2 million worth of real estate in less than two hours. But there were no real estate brokers, for sale signs or multiple listings--and the only fast talking was done by an auctioneer.

The Santa Clara-based development firm put 50 townhouses of the 103-unit San Tomas Court project on the block. Homes in the development had been selling for $169,500 to $215,000 through conventional real estate brokers for the last year. There was no minimum bid for the auction, which attracted 1,000 people, including 450 registered bidders.

Real estate auctions in the Twin Cities are becoming an increasingly popular way to sell real estated. One reason is that foreclosurd rates—the traditional reason for real estate auctions--are on the rise. But there also is a new breed of auction--offering new, often high-priced properties--that is gaining favor among developers and consumers alike.

The new breed of auction begins with weeks of advertisement on television and radio and in newspapers. Glossy brochures and fliers are part of the sell, and the day itself has a party atmosphere, replete with catered buffets and live music.

Though real estate auctions are more common in the Midwest, the new style of auctions is a Twin Cities phenomenon. The public really likes buying at auctions. There's a certain equity that comes from selling in an open forum--you feel good about what you just bought because you know there's someone else out there who was ready to buy it for just $1,000 less than you.

Although buyers do have a chance to purchase property for far below asking price, experts say that, on average, the price paid for real estate at an auction is usually market value.

The reason is that auctions bring together everyone who's interested in a property. The effect of potential buyer bidding against potential buyer ultimately sets a fair-market price.

In the Midwest, it's common to auction individual houses. But the Twin Cities rarely do it--except for homes in the million-dollar estate category.

Developers are attracted to auctions because they represent a quick way to liquidate remaining units in a large project after the initial sales momentum has worn off.

During real estate auctions, bidders are usually pre-qualified: They tour models, inspect partially completed dwellings and assess how much they are qualified to borrow.

While banks and other institutions with foreclosed property on their hands and developers looking for a quick turnover are the usual source for auction property, individual home sellers can put their homes up for bidding. This can be done by contracting an auctioneer to sell the house as part of a larger auction, or by auctioning the house by itself.

There is a lot of free information available to you about buying, selling or investing in the Twin Cities real estate. For complete information about the Twin Cities real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Twin Cities real estate. So please feel free to contact me with any of your real estate questions and I will me more than glad to answer your queries. Call me on my cell at 612-581-7313 or email me at steveschneeberger@edinarealty.com.

Pending sales continue to lag behind last year.  To be exact, they are down 44.2% to the same week last year.  New listings are also down but only by 8%.  Check out the full report compiled by the Minneapolis Area association of Realtors.

http://www.mplsrealtor.com/downloads/market/WMAR/wmar.pdf

Pending sales for May were down 24.6% compared to May 2009. With many buyers securing their home purchases before the April 30 tax credit deadline, the demand for housing fell dramatically in May.  New listings also decreased but not by as much.  Surprisingly, we are looking at a relatively balanced market with 6.7 months supply of housing available.  A balanced market is between 5 and 6 months supply.  Watch the video for a complete rundown on the Twin Cities real estate market.

http://www.youtube.com/watch?v=ieA3Qfux0t0

Remember how we've been saying that the Twin Cities housing

market has been getting successively slower in home sales every

week since the tax credit ended? Umm, yeah, well that's still happening.

The Twin Cities real estate market continues to catch its breath after the April 30 tax credit deadline.  Pending sales are down 34.6% to the same week last year - the fourth week of a year over year decline.  Check out the full report prepared by the Minneapolis Area Association of Realtors.

http://www.mplsrealtor.com/downloads/market/WMAR/wmar.pdf

Pending sales decline dramatically for the third week as the market takes a breath following the tax credit deadline.  New listings also down.  See the full report.

http://www.mplsrealtor.com/downloads/market/WMAR/wmar.pdf