September 2024 REAL ESTATE NEWS Brought to you by Dan and Lisa Basil . Home Equity 101: Understanding and Using Your Biggest Asset Home equity is a strong financial asset that homeowners can use in many ways. It represents the difference between the current market value of your home and the outstanding balance on your mortgage. As you pay down your mortgage and as your home's value appreciates, your equity grows, creating a valuable financial resource. Did you know you can use your home equity for various purposes? According to latest research, three out of five home loan holders have at least $100K in tappable equity (the sum a borrower can access while keeping a healthy 20% equity cushion). Here are some ways you can make the most of your home equity: Home Renovations: Enhance your living space and raise the value of your home to boost your equity even more. Consolidation of Debt: Consolidate high-interest debts, such as credit card balances, into a single, more manageable, and often lower-interest loan. Education Expenses: Utilize a lower-interest home equity loan or line of credit (HELOC) to fund your or your children's education. Emergency Expenses: Use home equity as a financial safety net during emergencies. Investing in Real Estate: Buy additional property, either as an investment or a vacation home. Starting a Business: Get the money you need to start or expand your business. Supplement for Retirement: Supplement your retirement income through a reverse mortgage or by downsizing and using the equity to bolster your savings. When Not to Use Home Equity High-Risk Investments: Funding speculative investments can be risky. If the investment fails, you could lose your home. Non-Essential Luxuries: Avoid funding vacations, luxury cars, or other non-essential purchases. They do not increase your home's value and can put you at financial risk if you're unable to repay the loan. Covering Everyday Expenses: Using home equity to cover everyday living expenses may be a sign of more serious financial issues. It's better to address the root causes of financial instability rather than applying a temporary fix. How to Start Utilizing Home Equity Determine Your Equity: Calculate your equity by accessing your home's current market value and subtracting your outstanding mortgage balance. Reach out to me and I can help you with this. Define Your Needs: Clearly outline what you intend to use the equity for. This will help you choose the right type of loan or line of credit. Consult with Professionals: Real Estate Agent: If you’re considering using equity for real estate investments, or just need help to define your next steps, feel free to contact me. I can provide you with all the info you need and connect you with other professionals. Lender: Speak with a mortgage lender or financial institution to explore your options for home equity loans or lines of credit. They will inform you on interest rates, terms, and application requirements. Financial Advisor: For complex decisions, such as using equity for retirement or business, a financial advisor can offer valuable guidance. Apply for the Loan/Line of Credit: Complete the application process with your lender once you've chosen the right financial product and gathered all documentation. Plan Your Expenditures: Ensure you have a clear plan for how you will use the funds and manage repayments. Whether you're looking to improve your home, consolidate debt, or fund major life events, I am here to help you navigate the process of leveraging your home equity. Your journey to financial empowerment begins with understanding and utilizing the resources available to you – let's explore your options together! Essential Fall Home Maintenance Checklist As the vibrant colors of fall begin to emerge, it's the perfect time to prepare your home for the months ahead. Proper maintenance can prevent costly repairs and keep your living space in top shape. Here's an essential fall home maintenance checklist. September: Seal and Protect Seal Windows and Doors Check for drafts around windows and doors. Use weatherstripping or caulk to seal any gaps. Replace worn-out seals to improve energy efficiency and keep your home cozy. Service the Heating System Schedule a professional inspection and tune-up of your furnace or heat pump. Replace filters and test the system to ensure it's working properly. If you live in an apartment, coordinate with your landlord or building management to make sure everything is in a good shape. October: Clean and Inspect. Safety First Inspect the Fireplace and Chimney As the temperatures drop, a warm fire becomes inviting. Have your chimney inspected and cleaned by a professional. Check the fireplace for cracks and repair any damage. If you live in an apartment, check with management for maintenance services. Clean and Store Outdoor Furniture Give your outdoor furniture a good scrub with mild soap and water. Once dry, store it in a shed or garage, or use weather-resistant covers. For apartments, consider indoor storage or protective covers for balcony furniture. Test Smoke and Carbon Monoxide Detectors Ensure these lifesaving devices are functional. Test each detector and replace batteries if needed. Replace units that are over 10 years old to ensure your home is safe. Check Insulation Proper insulation helps maintain indoor temperatures and reduces heating costs. Inspect insulation in your attic, walls, and basement. Add more insulation if needed, particularly in drafty areas. For apartments, discuss insulation concerns with your landlord. November: Prepare for Winter (Homeowners) Inspect and Clean Gutters Prevent water damage by clearing out fallen leaves and debris. Use a sturdy ladder to reach your gutters. Remove debris by hand or with a gutter scoop, then flush with a garden hose to ensure water flows freely. Drain and Winterize Outdoor Faucets and Sprinklers Disconnect and drain garden hoses. Shut off the water supply to outdoor faucets and drain any remaining water. Blow out sprinkler systems to prevent water from freezing in pipes. Check the Roof Before winter arrives, inspect your roof for missing, damaged, or loose shingles. Look for signs of wear around chimneys and vents. Consider hiring a professional for a thorough inspection. Trim Trees and Shrubs Trim dead or overgrown branches to prevent damage to your home during windy or stormy weather. Keep branches at least three feet from the house to avoid damage. Enjoy the cozy season with the peace of mind that your home is well-prepared and maintained! If you need any professional recommendations or further advice, feel free to reach out! QUESTIONS? VISIT www.thebasilgroup.com

 

REAL ESTATE NEWS Brought to you by Dan and Lisa Basil . Navigating Homeownership with an HOA If you’re considering buying a home in a community governed by a Homeowners Association (HOA), you’re not alone. HOAs are common, offering a structured community environment with shared amenities and well-maintained surroundings. However, navigating life with an HOA can come with its own set of challenges and benefits. Here’s a handy guide to help you make the most of your HOA experience. The Pros of Living in an HOA Community Well-Maintained Properties and Common Areas: One of the primary advantages of living in an HOA community is the assurance that your neighborhood will be well-maintained. HOAs enforce rules that ensure lawns are mowed, properties are in good repair, and common areas are clean and attractive. This can enhance your home’s curb appeal and overall value. Access to Amenities: Many HOA communities offer amenities like pools, gyms, parks, and clubhouses, providing a higher quality of life without the hassle and expense of maintaining them yourself. Conflict Resolution: HOAs mediate disputes between neighbors, helping to resolve issues like noise complaints or property boundaries amicably. This can save you the stress of direct confrontation and promote a peaceful living environment. The Cons of Living in an HOA Community Monthly Fees: HOA fees are a regular part of life in these communities. While these fees go toward maintaining common areas and amenities, they can add a significant cost to your monthly budget. Restrictions and Rules: HOAs enforce guidelines that can sometimes feel restrictive. From the color of your front door to the type of landscaping you can install, these rules are designed to maintain uniformity and property values. However, they might limit your personal freedom to modify your home as you see fit. Potential for Conflict: While HOAs can help resolve disputes, they can also be a source of tension. Disagreements over rule enforcement, fees, or community decisions can cause friction between homeowners and the HOA board. Tips for a Harmonious HOA Experience Read the Rules: Before buying a home in an HOA community, carefully review the Covenants, Conditions, and Restrictions (CC&Rs). These documents outline all the rules and regulations you’ll need to follow. Understanding these guidelines upfront helps prevent any surprises. Attend HOA Meetings: Stay informed and involved by attending meetings. These are opportunities to voice opinions and vote on community matters. Communicate Effectively: If you have concerns or suggestions, communicate them clearly and respectfully with the HOA board. Building a positive relationship with board members can make it easier to address any issues that arise. Stay Informed About Fees: Know what your HOA fees cover and stay updated on any changes. Knowing how your money is being used can help you appreciate the value provided by the HOA and avoid any misunderstandings. Embrace the Community Spirit: HOAs aim to foster a cohesive, well-maintained community. Embrace the spirit of cooperation and mutual respect that an HOA promotes. Get to know your neighbors, participate in community events, and contribute to the positive atmosphere of your neighborhood. Navigating life with an HOA can be a rewarding experience when approached with the right mindset. By understanding the pros and cons and following these tips, you can enjoy the benefits of a well-managed community while minimizing potential drawbacks. Pet-Friendly Home Design Tips Whether you’re a current pet owner or considering bringing a furry friend into your home, creating a pet-friendly environment can enhance both your life and theirs. Designing a space that accommodates pets’ needs doesn’t mean sacrificing style or functionality. Here are some tips to achieve a pet-friendly yet elegant home. Flooring Choices for Pet-Friendly Homes When it comes to flooring, durability and ease of cleaning are key. Here are some pet-friendly options: Tile and Laminate: Scratch-resistant and easy to clean, perfect for managing pet hair and accidents. Hardwood: Opt for harder woods like oak or hickory that can withstand scratches. Applying a durable finish can also protect your floors from pet-related damage. Area Rugs: Choose rugs made of stain-resistant materials with non-slip backing to prevent accidents. Pet-Friendly Furniture Selecting the right furniture can make a big difference in maintaining a pet-friendly home. Durable Fabrics: Choose furniture with durable, easy-to-clean fabrics like microfiber or leather, which are less likely to hold onto pet hair and are easier to wipe down. Washable Covers: Invest in furniture with removable and washable covers for easy cleaning. Pet-Friendly Spaces: Create designated spaces for pets with cozy beds or blankets to give them a comfortable spot to relax and keep fur and dirt confined to one area. Outdoor Spaces for Pets If you have a yard, designing a pet-friendly outdoor space can provide your pets with a safe and enjoyable environment. Secure Fencing: Ensure your yard is enclosed with a secure fence to keep pets safe, and check regularly for gaps. Pet-Safe Plants: Avoid toxic plants like lilies and azaleas. Opt for pet-safe plants such as marigolds and sunflowers. Learn more about keeping your pets safe here. Shaded Areas: Create shaded areas where pets can escape the sun with trees, shrubs, or a gazebo. General Tips for a Pet-Friendly Home Proper Storage: Keep pet supplies organized with designated storage areas for food, toys, leashes, and grooming tools. Regular Cleaning: Vacuum and clean regularly to manage pet hair and dander. Air purifiers can also help improve indoor air quality. Safety First: Keep hazardous items, such as cleaning supplies and medications, out of pets’ reach to prevent accidents. Even if you don’t have a pet now, these tips can help you create a welcoming space for future pets or visiting furry friends. With the right choices, you can design a space that’s both beautiful and accommodating for pets. Happy decorating! QUESTIONS? VISIT www.thebasilgroup.com

Minneapolis Real Estate Market Update - June 2024

 

Overview:

The Minneapolis housing market continues to show dynamic trends, with both listings and sales demonstrating growth compared to the previous year. Let’s dive into the key highlights:

1. New Listings and Pending Sales:

   • Year-to-date, there have been 10.6% more new listings and 1.8% more pending sales metro-wide compared to the same period last year.
   • Seller activity has outpaced buyer activity, resulting in consistent inventory growth.

2. Inventory Levels and Prices:

   • In June 2024, the number of homes for sale increased by 10.6% to 8,905 active listings.
   • Despite additional supply, there are still only 2.4 months of inventory, indicating a seller’s market.
   • Buyers face affordability challenges due to rising prices and higher interest rates.

3. Market Times and Negotiations:

   • Sellers accepted offers at 100.1% of their list price on average.
   • Homes spent an average of 34 days on the market before selling.
   • Single-family homes sell faster (31 days) than condos (56 days).

Outlook:

While the market remains competitive, keep an eye on affordability and inventory dynamics. The Minneapolis real estate landscape is ever-changing, and staying informed is crucial for buyers and sellers alike.

For more detailed data and insights, visit the Minneapolis Area Realtors’ Market Data section.

---

Source: Minneapolis Area Association of Realtors (MAAR)

If you have any further questions or need additional information, feel free to ask! 😊

 

•  Confidence Index for buyers was flat from a year ago but up for sellers:
  
• 
  
• 22% of respondents expect a year-over-year increase in buyer traffic in the next three months, down from 26% one month ago and flat from 22% one year ago.
• 22% of respondents expect a year-over-year increase in seller traffic in the next three months, down from 26% last month and up from 16% one year ago.

With supply still limited relative to demand, 27% of homes sold above list price, down from last month (29%) and a year ago (33%):

• 68% of respondents reported that properties sold in less than one month, up from 60% a month ago and down from 73% in April 2023.
• Homes listed received an average of 3.2 offers, up from last month (3.1 offers) and from one year ago (3.1 offers).
• Due to the lack of housing inventory, the pace of the market, and the use of technology, 6% of buyers purchased a home based only on a virtual tour, showing, or open house without physically seeing the home. This is flat from 6% one month ago and down slightly from 8% one year ago.

Contracts typically closed in 30 days, the same as last month and one year ago. But some faced delays or termination:

• 4% of contracts were terminated in the last three months, similar to one month and one year ago.
• 11% of contracts had delayed settlements in the past three months, similar to last month and one year ago.
• 6% of contracts had delayed settlement due to appraisal issues, virtually unchanged from last month and one year ago.

First-time buyers represented 33% of buyers, up from 32% in March 2024 and 29% in April 2023. Among all buyers:

• 16% purchased for non-primary residence use, up slightly from 15% last month and down slightly from 17% last year.
• 5% were purchased for vacation use, unchanged from one month ago and down slightly from 7% one year ago.
• 1% of sellers sold to an iBuyer, virtually unchanged from one month and a year ago.
• 2% of sales were distressed, flat from one month and up slightly from 1% one year ago.

Contract activity remains competitive:

• 28% of buyers had all-cash sales, flat from one month and one year ago.
• 19% of buyers waived the inspection contingency, down from 22% one month ago and 21% one year ago.
• 18% of buyers waived the appraisal contingency, down from 25% one month ago and flat from a year ago.

Buyers continue to look outside of city centers for the majority of their activity at 82%.

Monthly Housing Market Update - April 18, 2024

Spring Into Action: Tips for Selling Your Home This Season

As temperatures rise and flowers begin to bloom, now is the perfect time for a spring home sale. In fact, real estate data provider ATTOM found that properties sold in April, May and June garnered the highest returns over the last 12 years. If you want to take advantage of the season’s vibrant energy and […]

MICHELLE ABENDSCHAN

As temperatures rise and flowers begin to bloom, now is the perfect time for a spring home sale. In fact, real estate data provider ATTOM found that properties sold in April, May and June garnered the highest returns over the last 12 years. If you want to take advantage of the season’s vibrant energy and high demand, here’s what you can do to ensure a successful  sale.

Maximize Your Curb Appeal

Spring is the ideal season to show off the beauty of your home and capture buyer interest before they even step through the front door. Nothing is more inviting than a freshly mowed lawn, blooming flowers and well-manicured trees and shrubbery. Buyers will notice the details, so it also pays to have your home and driveway power washed and gutters cleaned. Even small improvements like a new mailbox, welcome mat or porchlight can make a big impact.

Do a Deep Clean

Your home should sparkle from the floorboards to the ceiling fans. Buyers pay special attention to bathrooms and kitchens, so you’ll want to address tiling, grout lines and appliances. Replace shelf liners and shower curtains and have the carpets and curtains cleaned as well. And don’t forget about hidden spots, like the cabinet under the sink and the area behind the refrigerator. A pristine home shows buyers that the property has been taken care of, giving them more confidence to put in a competitive offer.

Address Repairs and Upgrades

You don’t have to renovate your home to get a quick sale. Some minor upgrades can significantly enhance the property’s overall appeal. A fresh coat of paint, for example, can change the entire feel of your home. Choose neutral colors and keep the palette consistent throughout the interior. You can also replace outdated drawer pulls, knobs and faucets. If your budget allows, consider purchasing new kitchen appliances and/or countertops, as these are important features that buyers will appreciate.

Declutter and Depersonalize

A clutter-free home appears more spacious and allows potential buyers to envision themselves living there. Pack away personal items and unnecessary objects to create a neutral canvas that appeals to a broad audience. Remove refrigerator magnets, family photos and knickknacks. Keep kitchen and bathroom counters clear and consider removing a piece or two of furniture from each room to enhance its spaciousness. Bare walls can make the home seem sterile, so hang tasteful artwork that doesn’t overpower the room.

Lighten up the Interior

Spring offers abundant natural light, making your home appear expansive and inviting. Clean your windows thoroughly to allow for maximum sunlight and keep your curtains and blinds open during showings.  Now is also a good time to replace lightbulbs to create a warm ambiance throughout the residence.

As you prepare for a spring home sale, your agent will guide you through other key considerations, like pricing the home competitively, arranging professional photography and engaging buyers across high-traffic websites and social media platforms. Together you can make your property stand out in this season’s blooming real estate market.

 January 2024

REAL ESTATE NEWS

Brought to you by Dan and Lisa Basil

.

2024 Market Predictions: Will Home Prices Drop?

Before delving into the trends, it's important to say that general market dynamics impact individuals differently based on their personal situations and needs. Therefore, don't hesitate to reach out to me for personalized recommendations tailored to your specific circumstances.

With home values and interest rates still being relatively high, both buyers and sellers are wondering what's going to happen to the market in 2024. Typically, home values increase when demand is high and supply is low. Conversely, prices tend to decrease when the housing supply is high and demand is relatively low. So, what will the conditions look like this year? Let’s look at the latest market trends.

Up or down?

What is the Market Currently Like?

Today's housing market is characterized by high prices, high interest rates, and low supply. While high prices are typically driven by strong demand, the current demand is somewhat normal. Inventory is still low, however, which allows sellers to retain higher prices. Since interest rates and home prices are high at the same time, many potential buyers are finding it difficult to afford a purchase.

Will Interest Rates Drop?

The Federal Reserve has steadily hiked interest rates since March 2022 in order to slow inflation. Interest rates held steady from July through December 2023, with mortgage rates dropping slightly, but what can we expect in 2024?

As inflation has improved in recent months and is projected to continue falling in the year ahead, the Federal Reserve has signaled that we could see several rates cuts in 2024. There is still a possibility of rate hikes, depending on inflation and other economic factors, but so far, the outlook is hopeful.

Lower rates would make it more affordable to buy a home.

Will Home Prices Drop?

While home value appreciation is expected to slow down, it's not yet clear if home prices will decrease. Given recent trends, some areas may experience a price increase of around 3-4%, while others may see a drop of 1-2%. Prices are directly connected to housing inventory. Unless there is a considerable increase in inventory, home values will remain high.

Will Inventory Improve?

The number of homes on the market is still relatively low and is showing a declining trend compared to the same time last year. To reach a balanced market, around 5 to 6 months of supply needs to be available at a given time. The current inventory is only enough for a 3.4-month supply. It's believed that inventory levels will improve somewhat in 2024, which could help with home prices. However, it is likely that new home construction will not reach healthy levels until 2025.

All the above indicate that home prices are unlikely to drop significantly in 2024. Until we see any significant changes to interest rates, inventory levels, or home prices, it will remain mostly a seller’s market. The market can change quickly though, so if you’re ever curious about our local conditions or want to discuss how the latest market trends may affect you, reach out anytime.

Home Staging Tips to Make Your Home Shine

When it comes time to sell your home, you want to make sure that you make the best impression on potential buyers. One of the most important steps to prepare for private showings and open houses is to stage your home. By properly staging your home, you'll be able to present your home in the best possible light and create a welcoming atmosphere that will entice buyers.

Clean and clutter-free - Depersonalize Your Home

Home staging is all about making it possible for potential buyers to see themselves living in your home. To achieve this goal, think of your home as a blank canvas - remove all personal items that tell buyers that the home belongs to someone else. Begin by removing all personal photos, memorabilia, and knick-knacks, including anything on your refrigerator and walls. Remove or swap out any distracting or provocative artwork. Put away all clothing and put away any personal items in your bathroom.

Do a Thorough Clean

When you're about to place your home on the market, it's crucial that you perform extensive cleaning that goes above and beyond your usual routine. Try to remove all signs of dust and dirt throughout your home. Consider hiring professional cleaners to take care of this task for you.

Remove Clutter

While it's important that every surface in your home is clean, it's also a good idea to declutter your space. Homes are most appealing when they appear to have ample floor space. If you have furniture in every corner of your home, it can make the rooms look smaller than they are. Remove excess furniture and décor so buyers can move around freely.

Make Minor Repairs Where Necessary

Before listing your home, consider making minor repairs that can boost your home’s appeal. Tend to any imperfections that buyers might notice. Try to patch small holes and make scratches less visible. Consider adding some fresh paint to spots where fading has occurred. A handy tip is to remove scuffs from walls with melamine foam eraser sponges. Addressing these small damages lets buyers know that you take care of your home.

Don't Forget Curb Appeal

Even though home staging mainly occurs inside your home, it is also essential to pay attention to the exteriors. First impressions go a long way when you want a potential buyer to make an offer. You can boost your home's curb appeal by adding a fresh coat of paint to your shutters or front door, replacing old house numbers, and cleaning up any flowerbeds/landscaping in your yard. Consider renting a pressure washer to remove dirt from your roof, gutters, and siding.

Effective home staging can make the difference between a buyer making an offer and passing you over. Making a little extra effort upfront can go a long way towards getting the best offer for your home.

QUESTIONS? VISIT www.thebasilgroup.com

Dan and Lisa Basil CRS,GRI

Real Estate Sales Executives

Coldwell Banker Realty

Licensed in MN

612-280-5046

763-550-3888

Celebrating 25+ years of experience...Contact us today!

debasil@cbburnet.com

www.thebasilgroup.com

Not intended as a solicitation if your property is already listed by another broker. Affiliated real estate agents are independent contractor sales associates, not employees. ©2022 Coldwell Banker. All Rights Reserved. Coldwell Banker and the Coldwell Banker logos are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker® System is comprised of company owned offices which are owned by a subsidiary of Realogy Brokerage Group LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act.

Coldwell Banker Realty | 235 Lake St E #100 | Wayzata | MN | 55391

**If you wish to see our monthly video, please pm us with your phone number and we'll be sure to add you to the group. There is valuable information shared in our 30 second monthly video that will keep you informed about home values and your home's value.