The st Paul Winter Carnival

It’s almost that time of year again…The Winter Carnival in St Paul.  This is the time of year that we get to embrace our inner Minnesotan and bundle up and head out in the cold for a day of fun.  The weeklong event will run from January 26-February 5.  You can count on great food and amazing ice sculpture.  In addition,  there will be music, peewee hockey, snow sculptures,  sled dog races, sculpture competitions, ice skating, and of course, the Palace.  The Winter Carnival is so much fun that even the residents of the west metro suburbs like Minnetonka, Wayzata, Excelsior, Deephaven, Edina, and  St Louis Park make their way across the river to celebrate.

You can visit the Winter Carnival website at www.winter-carnival.com  to find out the address and schedule of events.  See you there!

Showing your home during the holidays

Showing your home during the holidays can pose some challenges.  Here are a few thoughts that you may find helpful.

1.       Keep decorations to a minimum.  Choose a few select items and display them in a way that does not obstruct views or take away from the aesthetic of your space.  Remove all holiday decorations as soon as possible and restore your home to its original decorations.  There are a few reasons for this… you will likely have a diverse group of potential buyers viewing your home.  You want your space to speak to them and not the decorations or your ideals and beliefs.  While decorations are special and meaningful to us, to buyers  they  can seem like clutter and distract from what you are really wanting people to see…your home!

2.       Some sellers are inclined to place their home on a “not available for viewing” status during the holidays so they do not have to worry about showing the home during the busy holiday season.  If selling your home is not essential then this is a strategy that can work and allow you to have the option of enjoying the holidays without worrying about keeping things just so for potential showings.  If you do need to sell, I do not recommend this strategy.  Home inventories are typically down during the holidays which can give you an advantage in the first place.  With fewer homes on the market, yours will stand out more to motivated buyers. 

Instead, consider attending a holiday celebration at a friend or relatives home so that if a last minute showing arises in the days before the holiday you don’t have to vacate a house full of guests or fiddle with your holiday plans.   

Wouldn’t it be the best holiday gift to yourself to sell your home??  Hopefully these tips can make that happen for you!

Happy Holidays!

Market Trends

As is usual, the holiday time tends to be slower than usual in the Real Estate market.  As of November, the amount of homes on the market decreased over 20% to numbers that we last saw in 2004.  This may not seem like the best news, however, the sellers that are currently listed in the market are seeing an upside to lower inventory.  Purchase agreements signed during this time are up a little bit more than 30% over the same time last year.  While the median asking price has decreased a little bit, sellers, on average,  are finding that they are able to take offers that are 90% of the listed price.  This is really exciting because this is the fourth consecutive month that this figure has risen!

As I have mentioned before, selling during the holidays can be a challenge, but buyers are motivated and there is generally less competition among current listings.

Short Sale vs Foreclosure - Part 4

Foreclosure versus short sale and how it can affect employment.

Foreclosures are serious and they show up on your credit history and affect your credit score (see previous post).  Did you know that employers reserve the right to check your credit as needed?  Some jobs that are considered sensitive (like some military positions, CIA positions, police, and high profile security jobs) and may regularly be subject to credit checks.  Depending on the job a foreclosure can have a negative impact.  If you are applying for a new job, be aware that many employers are performing credit checks on all applicants and a foreclosure can challenge your employment eligibility in some more sensitive fields of employment.

Short Sale vs Foreclosure - Part 3

How does a foreclosure versus a short sale affect my credit score?  How long will it show on my credit history?

Many of us have worked hard to establish and maintain a good credit score.  Current woes in the housing markets have made a bit of a mess out of otherwise stellar credit scores. 

Both options lower your credit score although foreclosures do so more substantially.  The average foreclosure can pull your credit score down anywhere between 250-350 points and remain attached to your credit history for 7 years and possibly longer. 

If you have remained current on your mortgage payments prior to the closing of your short sale you are in fairly good shape.  Once the short sale is complete it is reported as “paid as agreed”.  Generally a short sale will drop your credit score about 50 points and its effect can be brief…about a year or two.  Be aware though, if you make late payments on your mortgage before the sale of your home your credit score will be affected much more so.  As far as your credit history you are in luck!  Short sales are not reported on a credit history.

Short Sale vs Foreclosure - part 2

What happens when I am ready (and eligible) to apply for another mortgage?

On future lender forms, you will have to answer a question that asks if you have foreclosed on a property within the last 7 years.  Of course, if you have foreclosed within said time frame your rates will be affected.  If you have negotiated a short sale instead of a foreclosure you don’t have to worry about answering a question like that. As a matter of fact, if you are current on payments upon the close of your home, you may apply for a FHA loan right away.  If you have been delinquent on your payments at the time of your closing you will have to wait 3 years until you become eligible for a FHA loan.