How to choose a REALTOR® to sell your home

Thinking of selling, but don't know where to start? Recently I've been asked by a number of potential sellers, "How do I choose a REALTOR®?"  Here is what I recommend in a step by step process:

1. Choose up to 3 REALTORS® to interview.  The most common way to pick is by referral from a friend or family member.  If you don't have a referral you can choose based on online reviews and profiles.

2. Set up appointments with the REALTORS® to come out and give you a Comparable Market Analysis (CMA) on your home and present a Marketing Plan, this may be a 2 step process. They may need to view your home and go back to do research and prepare the CMA.

3. Review their Comparable Market Analysis. Upon the REALTOR® viewing your home they should provide you with a written CMA which shows you what comparable homes to yours have sold for in the past 6-12 months and what is currently on the market, which will be your competition. Pricing is the single largest factor in selling your home, so pricing it right and not over pricing is extremely important. One of the most common misconceptions is that you should choose the REALTOR® that tells you the highest price your home will sell for. Do not do that!

4. Choose based on qualifications. Make sure they are licensed, full-time, a member of the National Association of REALTORS® and a member of the MLS. Ask how many years of experience they have and how many homes they have sold.  This is important because some REALTORS® have all these qualifications but only sell a couple homes per year.

5. Ask how they will market your home.  A good REALTOR® will have a Marketing Plan prepared for you that lays out where they advertise and what marketing activities they will be doing to get your home sold!

6. Choose a REALTOR® who listens and understands your needs and desires. This person will be assisting you with possibly one of your largest financial transactions of your life so you should enjoy working with them and trust them.

Any further questions or comments?  Don't be afraid to ask!

FTHBFAQ

No, my caps lock is not stuck on... it's First Time Home Buyers Frequently Asked Questions or FTHBFAQ!

Q: How much money do I need to save before considering buying my first home?

A: It depends, but recently I have seen some buyers come in with as little as $500.  You should have at least $500 saved for earnest money and approximately $300-$400 for a home inspection.  Those are costs that a seller cannot pay on your behalf.  There are still 0% down programs out there like Rural Development and VA loans. And you can ask the seller to pay for your closing costs!  I recommend talking to a local lender to get pre-qualified.  They can let you know specifically what they'd like to see.

Q: Why should I buy instead of rent?

A: #1 Because it's cheaper to own instead of rent in the Bemidji area. With the college rental market driving rent prices up you can buy a similar home for nearly half as much monthly in a mortgage payment than the cost of rent. #2 Tax deductions.  You may be able to deduct the interest you pay on your mortgage and your real estate taxes on your tax return. #3 It's an investment.  Instead of paying down someone else's mortgage you can reap the benefits of home ownership buy owning your own home.

Q: Are foreclosures good deals?

A:  I would caution first time buyers on foreclosures.  There are often unseen issues that can not be detected that you will have to deal with on your own once you are the home owner. Foreclosures are typically sold as-is because the bank has never occupied the property.  They couldn't possibly know all the issues that could be associated with it.  The other problem you may run into is condition.  Many loans that are typical FTHB loans like Rural Development, VA or FHA require the house to be in good condition. And some of those programs won't even finance the home if it is bank owned.

Q: How do I choose a Realtor?

A: There are many ways to choose.  The most common is a referral from a friend or family member that had a pleasant experience with a local Realtor.  You can also choose based on qualifications, like experience, designations, and availability.  You will want to choose a Realtor whom you can work well with and who has the knowledge and experience to walk you through the process.  Buying your first home can be confusing and scary, since it is likely the biggest purchase you have made in your life so far.  But with the right Realtor by your side they should be able to answer all your questions and calm your fears.

If you are a FTHB and have more questions feel free to ask!  You can post here, call, text or email me with questions.  Happy House Hunting!

Outlook for 2012

We are all children at heart.  Especially when it comes to asking questions!  Consumers today remind me of my 2 year old daughter, asking the same questions over and over and hoping/praying for different results.
 "Can I have candy?"   "Are we there yet?"  "How about now?"

Thankfully adults have more mature questions like, "How's the market, now?"  So without further adieu I will try and predict the market in the Bemidji area for 2012!  Using local MLS statistics I have compiled some facts and some speculation based on what I have heard and what I know to be true.

•  The total number of listings in Bemidji is down 21%. I believe that more sellers are waiting until prime spring/summer season to list, because the need to sell isn't as great as it has been in the past few years.
•  There are 26% more homes pending this year than last year at this same time.  With the mild winter it has been easier for buyers to get out to look at homes.  Also, I see an influx of first time home buyers fueling the market and getting things moving.  
• 41% more homes sold.  This speaks for itself.  The market is rebounding and homes are selling.
• The total volume of homes sold is up 90%! In my opinion this shows that with the first time buyers finally fueling the market, sellers are able to be move-up buyers and move more expensive homes that in the past few years have been taking longer to sell.  Also, because interest rates are so low buyers are able to afford a larger home.
• The average sale price is up from $122,016 last year at this time to $164,313 year to date.  I believe this is due to the fact that the average buyer is able to buy a larger home because of low interest rates. 

One of the other questions that gets asked frequently is, "What effect do foreclosures have on Bemidji's market?"  I believe that we will start to see less foreclosures in our area compared to the past 5 years and that the average price of those foreclosed homes will go up.  During those past 5 years we have had an influx of lower valued foreclosures that have brought the average sale price down for our area considerably.  Homeowners with homes of greater value seem to have been able to hold on to their homes longer, but we are now starting to see some of them come on to the market as foreclosures.

I hate to sound like a broken record or like my 2 year old, but remember, NOW IS THE TIME!  Don't miss out.  I believe that the market is now on the rise and people will be kicking themselves in the future for missing out on this wonderful opportunity to buy in Bemidji!  So get out there and find your dream home, vacation cabin, or rental property today!

Rock Bottom?

Being a Realtor people are constantly asking me how the Bemidji market is.  Lately, their favorite question is: "Have we hit rock bottom yet?"  My answer: "We won't know until we start going back up."

If you take a look at the chart below you will see a slight decline in the depreciation between 2009 and 2011.  In 2009, depreciation for the Greater Bemidji Area (56601 zip code) was at is all time 10 year high at around -6% per year. Since then depreciation has slowed to around -3.7% for the Bemidji zip code.  So, even though we haven't hit "rock bottom" on home sale prices, it appears that we have as far as the rate prices are falling at.

The chart and statistic information can also be viewed on my website at www.realliving.com/mandy.gazelka Click on local information and you will be able to search any zip code or address to obtain information on housing, people, economy, schools, environment, and quality of life for any given neighborhood or area.

Another great tool that was just released by Beltrami County is http://www.crimereports.com/ .  This website allows you to view all the calls for assistance in any given area in Beltrami County starting this year.  It will hopefully alleviate some of the calls to the local police station inquiring about the crime rates in certain areas or neighborhoods.  It can also assist potential home buyers in choosing an area to live in based on the perceived safety of the neighborhood.  Check it out and let me know what you think!

First Time Home Buyers

Have you been thinking about buying your first home, but don't know where to start?  I'm here to tell you how.

Step 1:  Get your finances in order. 

• Have on hand your tax returns, W2s, bank statements and pay stubs.   
• Have a little nest egg.  There are programs out there still where you only need as little as $1000 of your own money but the more you have saved, the better.

Step 2:  Make an appointment with a real estate lender. 

• If you don't know one, I'd be happy to refer you to someone I trust
• There you will get a pre-approval that tell you how much you can afford and will help you with negotiations further down the line.

Step 3:  Come see me, your trusted Realtor.

• I will walk you through the process of choosing a home and take you the rest of the way through your purchase.

If you would like a more comprehensive guide I will send you one, free of charge!  Just shoot me an email or give me a call.