The Vanneste Group - Edina Realty

Great Investment

2012-02-13T09:15:00.000-08:00

If you invest in a savings account, you'll make less than 1% and will have to pay income tax on the earnings. On the other hand, contribute something extra to your house payment on a regular basis and you'll essentially, earn at the mortgage interest rate which is certain to be more than you're earning in the bank.

Making additional principal contributions on your mortgage will save interest, retire debt and build equity. An extra $100 a month in the example shown will save thousands in interest and short the term of the mortgage as well.

Reducing your cost of housing is another way to improve the investment in your home. Becoming debt-free is a worthy goal that is achieved with discipline and good decisions. Suggestions like this are part of my commitment to help people be better homeowners when they buy, sell and all the years in between.

Risk Determines Rate

2012-02-06T15:11:00.001-08:00

Regardless of what a lender quotes on mortgage rates, the actual rate paid by a borrower is based on a number of variables. Lenders determine whether to loan money and at what rate based on the risk involved with the transaction.

Factors that increase the risk that the loan will be repaid will proportionately increase the interest rate charged to the borrower. If the risk becomes too high, the loan will not be approved.

Loan amounts - conventional loans for more than the conforming limits set by Fannie Mae are considered jumbo loans and generally have a higher interest rate.
FICO score - the lowest interest rate is reserved for the highest credit scores; the lower the score, the higher the rate borrower will pay.
Occupancy - borrowers occupying a home as their principal residence are considered a better loan risk than second homes and investment properties.
Loan purpose - purchase transactions generally have the lowest interest rate while refinancing a home is generally higher.
Debt-to-Income ratio - a borrower's monthly liabilities divided by their gross monthly income develops a ratio that helps lenders to assess the borrower's ability to repay the mortgage.
Loan-to-Value ratio - the lower the percentage of the loan to the appraised value of the property will generally lower the interest rate.

Any combination of these factors could limit a borrower's ability to secure a mortgage at the rate initially quoted. Being pre-approved by a trusted mortgage professional is the best way to know what rate you can expect to pay. Please call for a recommendation.

In search of an honest man

2012-01-30T08:54:00.000-08:00

Similar to Diogenes’ search for an honest man, homeowners want someone to do quality repairs at a fair price. The task appears reasonably easy but if you’ve ever tried to locate someone to fix something, you know just how difficult it is.

Finding a list of companies from a phone book doesn’t mean they’ll be reasonable and reliable, it just means they have a phone and are willing to pay for an ad. Searching on the Internet may direct you to a website that appears to be a local company but really is a marketing company who will sell the lead to a repairman or company who will pay a referral fee.

There are consumer organizations like Angie’s list who rate repairmen and contractors but they usually require an annual membership fee to be able to access the information. There are also services like Renovation Experts or Service Magic that are registries for contractors but they may not be the most competitively priced.

Your best recommendations are going to come from friends, family and neighbors you trust who have actually used the repairmen before and would use them again. The problem here is that you might have to make multiple calls before you can find a friend who can recommend the type contractor you need.

Repairs are a normal part of selling homes and we certainly come in contact with lots of contractors. This experience leads us to understand who is reputable and reasonable as well as who to avoid. As part of our commitment to helping you be a better homeowner from the time you buy your home until you sell it, we’re more than happy to make a recommendation of good repairmen or other professionals you might need. Give us a call…we want to help.

Last Minute Gifts Without Shopping

2011-12-20T11:06:00.000-08:00

What do they want? What do they need? Will it fit? Do they already have one? These are the common thoughts running through our minds when trying to find the perfect gift.

The gift of really listening with no interrupting, no daydreaming and no planning your response is exactly what people want when they have something important to say.

The gift of affection with appropriate hugs, kisses and pats on the back can demonstrate your love for family and friends better than words.

The gift of laughter by sharing cartoons and funny stories will say "I love to laugh with you."

The gift of a simple written note shows sincerity and real heartfelt sentiment that may be remembered for a lifetime and could even change a life.

The gift of a sincere compliment supports a person's need to be accepted and appreciated. "You look great in that color", "That was outstanding" or "I really enjoyed that" can make someone's day.

The gift of random kindness or good deeds like holding a door or allowing someone to move ahead of you in a checkout lane shows respect for others.

Your smile, however, may be your most rewarding gift. Invariably, the person receiving the smile will in turn, smile back. The gift you gave will now be given back to you. It will be the right size and you can always use one more.

TEN REASONS WHY YOU SHOULD LIST NOW!

2011-02-23T14:06:00.000-08:00

With record levels of snowfall this month of February, it's sometimes difficult to motivate sellers to get their homes listed! Many sellers are of the impression that if they wait until their grass is green and flowers are blooming, their house will show better and they'll get better offers. Here are some reasons why sellers should list now, and not wait until late spring.

1. Interest rates are at historic lows - but they are inching up. This has motivated some buyers to get more serious about their house search.

2. FHA rules are rumoured to be tightening - possible changes may mean that FHA buyers will have to pay more in the way of down payment and mortgage insurance. This will push buyers forward who want to beat these new possible changes.

3. We have already started our "spring market". Witness the "Open House Extravagansas" and the "Home and Garden Shows" prominent in our area.

4. The inventory will only get larger - creating more choices for your buyers if you wait.

5. There is a great selection of inventory for Move-Up buyers in this market. If you are a move-up buyer you will have lots to choose from.

6. June is historically our largest closing month - meaning that most buyers are under contract by mid April.

7. We are still in a down market. The experts are telling us that we should not be expecting to see house prices increase in value in the near future.

8. There are still First Time Home Buyer Programs out there. These programs are limited to areas, and funding availability - so there is a sense of urgency with those wishing to take advantage of those programs.

9. Because the Metro area is home to many large corporations, we are seeing transferees who want to get into a home before the school year ends.

10. You are more likely to attract serious buyers during the colder weather. Typically it is the more serious buyers who will go out into the snow and ice to look at homes - while the casual lookers will wait for nicer weather.

Record Drop in Twin Cities Home Prices, According to Zillow Report

2011-02-10T12:12:00.000-08:00

Record Drop in Twin Cities Home Prices, According to Zillow Report

Daivd Vanneste On Fox 9 News!

2011-02-10T09:12:00.000-08:00

http://www.myfoxtwincities.com/dpp/news/minnesota/zillow-twin-cities-home-prices-record-drop-q4-feb-9-2011

Real Estate Buyers Starting To Get Off The Fence!

2011-01-31T10:52:00.000-08:00

Having been a trusted agent in the real estate business for 25 years, I have seen many different markets. This current one has been one of the more difficult ones - especially for sellers. However, as with every dark cloud - there is a silver lining. There has never been a better time for buyers to make a move - either into the real estate market for the first time, or become a move-up buyer.

There are many factors that affect affordability for a buyer: Inventory, Home Values, Interest Rates and Tax Incentives. Right now in our current market, the affordability index is the highest we have ever seen it. Typically, an index over 100 indicates a good market for buyers. The affordability index is now at 184.5! This is because we have historic low interest rates, a tremendous selection and very motivated seller pool.

We are seeing more showings on our listings recently- indicating that buyers are getting this message, especially since interest rates have inched up a bit! A 1/2% increase in rates can transfer into a 5% decrease in price for buyers, so with the recent slight increase in interest rates, buyers are starting to get off the fence. Move-Up buyers are also seeing that by taking advantage of this current market and low interest rates, they are able to leverage themselves into a more expensive home.

Now is an incredible time to buy! Together with all their resources, the Vanneste Group is to assisting homebuyers achieve the social and financial benefits of owning a home.

Seizing Historic Opportunities!

2010-09-02T08:45:00.000-07:00

"It's the best affordable housing program we've had in the history of this country", Karl Case, a Wellesley College economics professor was quoted in an article written by Gita Sitaramiah in the St Paul Pioneer Press Sept 1, 2010.

What Karl was referring to was the oversupply of housing on the market, coupled with current historic interest rates that are hovering around 4.5%. This has indeed created a perfect storm for buyers in this market. In todays' housing market, buyers have an unbelievable opportunity to capitalize on something we have not seen in the history of this nation!

So - why aren't we seeing more activity from buyers? The current economic state is probably the best answer to that question. Buyers are feeling a little uncertain about the unemployment indicators and the general economic strength of our country. For those buyers willing to move forward tho', the opportunities abound.

We are actually seeing an uptick in home-buying from our more economic-savy clients, who realize the key to good investment is to buy when the market (housing and interest rates) is low! They recognize that with less competition for their offers, they are in postion to negotiate with sellers for unbelievable deals, and coupled with the low interest rates, they will be able to expand their purchasing power!

Timing is Everything! Buyers that step out into the market now will be seizing rare opportunities!

2010-07-16T12:10:00.000-07:00

The startling news contained in a recent AP report that about 1.7 million homeowners (one in 78 US homes) received a foreclosure-related warning between January and June of this year has reinfoced what many of us have believed for some time - that the foreclosure and short sale market will be with us for the foreseeable future.

While the foreclosure and short sale statistics for new listings in June of 2010 for our Twin Cities area reflect that there has been a slight reduction compared to June of 2009, it's likely that this is due more to the bank's managing the flow of their distressed properties. The expectation is that this market will be with us at least for a couple more years - that is assuming the economy does not worsen. Most people believe there is a "shadow inventory" of distressed properties waiting to hit the market.

The data for June of 2010 does hold some interesting statistics for Short Sale properties. Pending Sales and Closed Sales for Short Sale properties for June 2010 both increased which may mean that the parties involved (sellers, banks, agents) are improving their systems and knowledge to get short sales closed.

Due to the economic times we are currently experiencing, it is highly likely that someone you know or someone you are related to will be faced with the possibility of losing their home. It is at this particular stressful juncture that people should be turning to professionals to help them navigate through the options and difficult choices they have ahead of them.

We have recently partnered with a group that will help insure success for our short sale clients. This group consists of attorneys, closers and title professionals, who can assist us in providing our clients confidential and professional service.

If you know of anyone who may find further information on this subject helpful, please have them contact us for a free confidential analysis.

Is There Any Good News In Real Estate?

2010-06-11T12:47:00.000-07:00

The short answer to this is YES!

We're being bombarded daily thru national and local news services with negative real estate related stories. They range from features about the continued in-flux of foreclosures, to fraud cases, and not forgetting the current declining market.

So - lets put some perspective on this and also focus on some of the good news in this industry! This is not to gloss over the issues we are currently facing, but as someone who has been in the real estate business for 23 years, I have seen other times that have also been challenging (remember the double digit interest rates!?).

Our local market is quite a bit different than the overall national market. Quite often these news stories tend to focus on the national market - which is in worse shape than our local market, (mainly due to the local economic conditions). So, while predictions are that some national markets will see a further decline in values of 6-8%, our local market is actually faring much better. In fact when comparing April 2009 to April 2010 for Ramsey County alone, we see that both the sales volume and number of home sales have increased

Buyers have never had it better!! There is still an oversupply of homes on the market which means that sellers are being much more competitive in their pricing. We are also experiencing interest rates which have dipped down to 30 year lows! Interest rates will significantly affect the amount of home a buyer can purchase because it goes to the amount of monthly payment a buyer can qualify for. The other good news is that there are still programs out there that will allow down payment assistance to qualified buyers!

Sellers can still navigate thru this market with an experienced agent. Getting your home ready and pricing it right can still bring a quick offer. Just recently we had multiple offers on a property in Shoreview that ended up selling for over list price!

The key to success in this market is to have an experienced agent who can help guide you thru the constantly changing landscape!

Staging Works!

2010-03-02T13:50:00.000-08:00

We have actually been using staging techniques since 2005, as we've recognized that the two things that dramatically affect the saleability of a home are - price and condition! In fact we feel so strongly about this that we include a staging consultation by our accredited staff member as part of the service we provide our sellers.

Staging is not about decorating - but instead is about showcasing the selling features of the home. These can be the overall space of the home, updates like granite counters and hardwood floors, as well as architectural details such as vaulted ceilings or dramatic windows!

To showcase these selling features, it is important to remove distractions for buyers. Too many collectibles, accessories with a lot of color and detail, and family photos will draw buyers' eyes and attention away from what we want them to focus on. Sometimes eliminating or repositioning furniture will help to showcase the size of a room.

If sellers are expecting to receive "top dollar" for their home, they will not want to present a home that telegraphs a lot of "work" to the potential buyer. Most buyers do not want to purchase a home which will require hours removing wallpaper, repainting and replacing outdated light fixtures. If they do make an offer on such a home, they typically "tick down" the price of the home to compensate for such work. Paint is one of the cheapest ways to update a home - and new light fixtures and hardware will also assist in moving an 1980's house into the 2000's!

With most buyers beginning their search on the internet, it is really imperative to have sharp, clear and well taken photos of property. Rooms with too many accessories, overfilled with furniture, or with very dated decor will not reflect well in photos, and may deter buyers from wanting to see the home in person. A well staged home will definately reflect nicely in the brochures and photos online!

With the many HGTV "staging" shows on cable TV, we find that many of our sellers are already knowledgable about some aspects of staging - and most agree that once they have gone thru the process they are glad to have done so. Many of our sellers like to think of it as "early packing for a quick sale"!

Short Sales On The Rise

2010-02-23T14:57:00.000-08:00

An often misunderstood transaction in today's real estate market is the "Short Sale". A short sale is when a lender or lenders agree to accept less than the amount currently owed by the homeowner.

If owners purchased their homes at the height of the market, or refinanced recently, they may now find that they owe more on their home than what its current market value is. The coupling of the current economic crisis and the drop in home values over the past couple of years is causing this increase in short sales and foreclosures.

Often a short sale will cost the lender less than a foreclosure, so it can be a good way for lenders to minimize their risks. For current owners, a short sale may not hurt their credit history as much as a foreclosure, and thus allows them to get back on their feet a little quicker.

To qualify for a short sale, the current owner will need to demonstrate financial hardship. Most qualify on the basis of employment issues (IE: they have lost their jobs, had reduced hours, or were required to relocate to another state for employment). However there can be circumstances where health dictates that a person must move out of their home (IE: unable to use stairs). Owners are surprised to learn that they can qualify for a short sale, and still keep their payments current.

Because unemployment continues to hover at high rates, the expectation is that short sales will continue to rise. Recognizing this, the federal government has designed programs for homeowners facing this process. On April 5, 2010, the US government will implement the Home Affordable Foreclosure Alternatives Program. This will help simplify and streamline the use of short sales and deeds-in-lieu of foreclosures.

It is important that buyers and sellers use Realtors with experience to assist them in navigating the challenges of short sales. We did our first short sale in 2005, so we have witnessed first hand the many changes that the short sale process has undergone. An experienced realtor will help prepare clients for the short sale process and guide them thru this difficult period.

How Buyers Search For Homes

2010-02-16T13:16:00.000-08:00

Things have sure changed in this industry since I began 22 years ago! One of the biggest changes we have seen in our industry is how buyers search for homes. In 1999, only 37 per cent of buyers actually used the internet in their search. Today, 90 per cent of buyers are searching for their homes on line!

These internet sites have undergone their own transformations! Evolving features now can include multiple photos, downloadable brochures, video tours, neighborhood information and mapping.

Because most home buyers begin their search in this manner, the presentation of a listed home on the internet is very key to driving traffic to your property. There should be numerous photos highlighting the features of your home. The photos should be of good quality with good lighting and the rooms should be staged to focus on the selling features of your home!

Home Buyer Credit Deadline Approaching

2010-02-09T08:33:00.000-08:00

There is much speculation on whether or not Congress will extend the current Home Buyer Credit. What we do know for certain is that to obtain the $8,000 First Time Home Buyer Credit or to be eligible for the Move-Up Home Buyer Credit, clients will need to be under contract by April 30th, and closed by June 30th.

Last fall, Congress did extend the Home Buyer Credits - but as of today we have no firm indications that Congress will repeat the extensions. For clients to capitalize on the current Home-Buyer credits, they will want to begin the preapproval process with their lender as soon as possible. It is also important to remember that it takes time to find and negotiate on a home; and once this is completed clients will need to allow about 4 weeks for the underwriting and closing process to be completed.

It's not too soon to begin this process! General real estate indications are reflecting some improvement in the real estate market - see my link "The Skinny" for more on this!

Move Up Buyers Are Stepping Up!

2010-02-02T10:14:00.000-08:00

With the recent extension to the homebuyer credits expanding to move-up buyers, we are seeing more of these savy buyers entering into the housing market in recent months. We have the "perfect storm" of ideal circumstances for the move-up buyers - especially those with homes that are marketable to first time home buyers! Interest rates are still at historic lows, and when coupled with the increased inventory of homes on the market and the tax credits, our move-up buyers have been scoring some great deals on their move-up homes!

The most recent 3 of our move up buyers received offers on their existing homes within 10 days of listing with us, which enabled them to make some very competitive offers on their new homes! We anticipate we will see more people taking advantage of the current market, low interest rates, and tax credits to get into the home of their dreams!

2009-06-10T10:43:00.000-07:00

The mortgage back securities market has been causing interest rates to be bouncing all over this week! We went for a 30 Year Fixed rate of 4.75% last week, to 5.75% this week. They will continue to fluctuate, but it is creating a sense of urgency among buyers that now it the time to buy! If you are looking to upgrade or buy an investment property, now is the time while rates are still at historic lows! Don't let this opportunity pass you buy, especially if you are first time home buyer! They will also be changing credit restrictions for approval in July, so now is the time!

2009-06-04T13:26:00.001-07:00

Greetings! Well the spring market is busy, busy, busy! We are really starting to see things move, which is exciting for both buyers and sellers! The $8000 first time home buyer tax credit is still in play, prices are low, and so are interest rates making it the best time ever to buy! If you are an investor there are some smoking deals in the market place, and real estate is a great investment in your financial future! Call us today to learn more about that! We are also seeing multiple offers on many homes, buyers are getting off the fence and realizing this is the time to move!

2009-04-23T08:45:00.001-07:00

It has been a busy couple of weeks for us here at The Vanneste Group! We have put on lots of new listings and had lots of sales, 8 so far in April! People are ready to buy with affordability being incredible with today's low interest rates and home prices! We have some great buys out there that you should take a look at! We also have some new lakeshore that will be hitting the market in the next couple weeks, if you want more information before it goes active give me a call and I would be happy to share it with you. Remember, the first time home buyer tax credit is out there right now too, $8000! Doesn't get much better than that!

We have three homes that will be open this Sunday 04/26/09:

19 East Pleasant Lake Road, North Oaks 1-2pm Sun
557 Spring Hill Road, Vadnais Heights 2-3pm Sun
978 Pond View Ct, Vadnais Heights 12-1:30pm Sun

If you need directions give us a call!

Hope to hear form you!

David
www.Vanneste.com
651-481-6711

2009-04-03T07:24:00.000-07:00

Happy Friday! This weekend is Edina Realty's Open House Extravaganza and The Vanneste Group will be out in full force! Come visit us in one of our 8 open houses on Saturday and Sunday this weekend! We have a variety of home styles, price ranges, and areas! Check out EdinaRealty.com for all the times and locations! Hope to see you there!

2009-04-02T07:23:00.000-07:00

The real estate world is brimming with activity! At our office along we were up 300 showings from February to March, this means that buyers are out there. The low interest rates and prices are creating a sense of urgency for the buyers in the market place. We also have seen an increase in first time home buyers. We just closed on two homes with first time home buyers yesterday who will be taking advantage of the $8000 tax credit. This is an awesome opportunity to become a homeowner and the deals out there are phenomenal! Call me with any additional questions!

- David

2009-03-24T06:45:00.000-07:00

Good Morning All! It was nice to see the DOW come up 500 points yesterday! Also, NAR released that sales were up 5% nationally! So this is good news for the marketplace! We have seen a surge in first time home buyers here at The Vanneste Group. The $8000 first time home buyer tax credit is a great incentive to get out there and buy. With prices being low and interest rates at historic lows, affordability is at its best! Call us today for more information! Visit www.Vanneste.com to see all of our listings!

2009-03-02T07:55:00.000-08:00

It is an exciting day for us here at The Vanneste Group! It has been a busy week for us here in the real estate world, and we are launching our new and improved www.Vanneste.com website! We have spent months revamping this website for you our customers, giving you all the information you want and need about our community and real estate. The new site is easier to navigate and offers you more information that you want to know! These new features including community information, the number of active and sold properties in your community each month, our preferred vendors page, financing information, great brochures on our properties, an MLS search, my blog, and so much more right at your fingertips! Come back and visit us regularly, there will always be new information for you to see! Our goal is to surpass our clients expectations, so if you have in comments or suggestions on our new site, feel free to contact us.

Have a great day!

- David

2009-01-27T13:56:00.000-08:00

Welcome to David Vanneste's Blog! This is a new feature offered to you exclusively by The Vanneste Group at Edina Realty to keep you updated on the local real estate market, community happenings, and more! Come back and check it out!