Homes Bev Thorn, realtor for JBeal Real Estate Group, teaches Home Stretch, a home-buying workshop at the City of Mankato Intergovernmental Center. “For the average person, a home is the biggest purchase they’ll make in their lifetime. You have to weigh and measure a lot of things. There are lots of emotions that go into buying a home,” Thorn said. For instance, sometimes senior citizens have been in a property for many years and are ready to move into the next stage of their life such as a townhouse or retirement community. “Those are properties first-time home buyers could benefit from. It will probably take some updating on the buyer’s part, but the cosmetic things are minor” Thorn said. Determining an offer Where do you start? Too high and you won’t get the best value, while offers that are too low can incense the seller and bring an abrupt end to negotiations. And it is best that your Realtor not recommend your opening price, explained Thorn. Usually after seeing a number of homes, buyers have a good idea of market values and are ready to Photo by Tanner Kent make an offer on their home of choice. Bev Thorn, a realtor for JBeal Real Estate Group, serves as an instructor The Realtor may look up county records for the for Mankato’s Home Stretch workshops where she advises first-time assessment value, but the appraised and assessed homebuyers on the finer points of buying a home. values can differ in today’s market. Finding comparable homes that were sold and listed on the Multiple seller’s home equity, length of time on the market and the Listing Service (MLS) can be a more effective tool, listing price. Thorn said. Once the seller and buyer agree upon the price and “I go to the MLS and look for homes sold in their price terms and all the documents are signed by both parties, range in the last six months. I find homes that are in the the purchase agreement is a legally binding contract. same local area with comparable criteria such as age, style, square footage, number of bedrooms and bathrooms, Inspection garage and lot size. I show the comps to my clients,” Thorn advocates for inspections. For instance, in an Thorn explained. older home, an inspector can tell if there’s been moisture Then the buyers can compare the sold homes to the one over the years. If an inspector suspects water in the they want to buy. basement, he can offer scenarios as to how it happened “If it’s priced right and in sparkling good condition, the and give advice of how to solve the problem. seller may have more than one offer and then the buyers “You want to have as many eyes as you can,” said can get caught in a bidding war, which is not good for the Thorn. buyer,” Thorn said. Purchase agreement The next step is to make an offer through a purchase agreement. The buyer must write a check for earnest money to be deposited in the listing broker’s trust account. At closing, earnest money is applied to the buyer’s mortgage. “Nothing is valid orally. You have to get it down on paper. The purchase agreement has to be presented to the listing agent. Then the negotiation process begins,” said Thorn. Negotiation can be emotional and Thorn reminds her clients that realtors are the messengers who are doing their best to use their knowledge and skills to negotiate on their behalf. There are many variables in negotiating: the 26 • April 2013 • MANKATO MAGAZINE
Home Stretch workshops Learn everything you need to know about home buying and ownership during Mankato’s Home Stretch workshops. Topics include: overcoming barriers to home ownership, shopping, financing, qualifying, closing and more. For course dates and to register, call the city of Mankato at 387-8600. Cost is $20. To learn more, visit mankato-mn.gov and search “home stretch.”