Holmes Group Magazine Issue 2

HOLMES M A G A Z I N E GROUP LENDERS ISSUE 2 - FEB 2017

MOVING

BUYERS

STRESSED OUT? Mitigate your frustrations while home shopping

SANITY

OUR FEATURED LISTING Beautiful single family home in Inver Grove Heights

Buying a home?

Stressed out?

Tips on how to reduce stress

TH S SSUE 4-5 6-9 10-11 12-13 14-15 16-17 18

Holmes on Homes - The Spring Market Our Featured Listing - Inver Grove Heights Home Home & Style - Victorian Homes How to Reduce Stress - When Buying a Home Listings Q&A Crossword & Sudoku

Joe answers client questions

Q&

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Our Featured Listing this issue is a spacious home in Inver Grove Heights

This issue’s Holmes on Homes - Joe explains the spring market

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THE SPRING MARKET The spring market is here but what does that mean? We get asked quite often: When is the spring market and what should I do to prepare?

There are many different spring times and “Real Estate Spring” is different than mother nature’s spring.

Real estate spring refers to the beginning of the year

with staging, professional photography, pre-inspections, home warranties and more. But what about home improvements and renovations? We’ll go through an upgrade analysis to determine if there are cost effective options to make your home sell quicker and for a higher price.

I can’t say enough about the little things!

Paint, carpet, flooring, and staging go a long way! You get more money out of

“ARE YOU IMPROVING YOUR HOME, OR SIMPLYMAINTAINING IT?” where homes hit the market & buyers are out in their largest numbers. If you wait for green grass and leaves to be on the trees, you’re going to be at the tail end of it all. We’re seeing Real Estate Spring coming a little earlier each year and we expect to see listings coming on in larger numbers as early as February. That used to be April, then March, and now it’s as early as February. I think that it’s a great idea to take advantage of that buzz when there’s minimal competition in the market.

February and March are great months for that. You get the spring time buzz and avoid the massive number of competitive listings that come in April and May. As you know, pricing is all about supply vs. demand.

How to prepare is an entirely different process. We like to add value to our listings

that than what you put in. Other updates like new appliances, remodeled baths & kitchens you may not get a full return on. In fact, some updates you get a zero return on. For example, I was asked by a seller recently how much value did they add by replacing the roof a year ago, they were shocked to hear my answer of $0 dollars. How could that be? It was a cost of about $10,000. Certainly, the home was worth $10,000 more? I explained that they didn’t improve their home and instead were simply maintaining it. Every buyer expects that their home has a roof.

A roof that’s 1 month old is appealing but that appeal fades very quickly over time.

Ask yourself on home improvements, are you really improving your home or are you simply maintaining it? The answer to that question will start you in the right direction.

our

General Home Features

FEATURED HOME

Security System Custom 8’ Interior Doors Original Owner & Built in 2005 Cul-De-Sac for Privacy & Family Living Neutral Décor & Colors ¾” Oak Hardwood Floors on Main Floor 110 Recessed Lights Throughout The Home Floor Trusses 12” on Center Outside Soffits Wired for Holiday Lighting New Munchkin Boiler for Lower Level Worsborough Heated Floors Air Exchange System Forced Air Furnace with 3-Speed DC Drive Kinetico Water Softener Additional Lower Level Laundry Anderson Windows Throughout with Low-E Glass 400-Amp Electrical Service 50-Amp Electrical Hook up for RV Custom Blinds Throughout home Central Vac with Main Floor Kick-Pan

Welcome to 5950 Bradbury Court in Inver Grove Heights. This home was custom designed and built by the original owner in 2005. The total cost of the build was over $1,300,000 and is reflected in the architecture & design of the home. No expense was spared with endless details throughout.

Foyer/Entry Hardwood Floors Front Entry Coat Closet Custom Light Fixtures Custom Front Door w/Transom Vaulted Entry Flows into Main Floor

Kitchen 42” Raised Panel Maple Cabinets w/ Crowned Edge Custom Maple Cabinets with Soft-Close Doors throughout Commercial Grade-Six Burner Dacor Gas Range w/ Two additional Gas & Electric Ovens Commercial Exhaust/Vent Dacor Double Ovens Sub-zero Double Door Fridge & Freezer Center Island With Custom Copper Sink Custom Pendant Lighting Bosch Dishwasher Cambria Counter Tops Eat-in Kitchen with Gas Fireplace and Entertainment Center Drop-in Sink w/ Water Filtration System Sliding Glass Doors to Deck

Formal Dining Hardwood Floors Custom Maple Built-ins Custom Lighting

General Main Floor Notes Main Floor ½ bath Mud Room Main Floor Laundry Open Floor Plan Soaked in Natural Lighting Formal Dining & Separate Eat-in Kitchen Super-sized Living Room w/ Floor to Ceiling Windows Sliding Glass Door walk out to Maintenance Free Deck Hardwood Floors Throughout Central vac Custom Lighting Custom Window Treatments Throughout Custom 8’ Interior Doors

Living Room 3-Sided Gas Fireplace Floor to Ceiling Windows with Custom Treatments Built-in Entertainment Center Custom Surround Sound Vaulted Ceilings with Custom Lighting

Lower Level Open & Inviting Floor Plan Wet Bar with Fridge, Bosch Dishwasher & Ample Storage Wine Cellar Custom Lighting & Tray-Vaulted Ceilings Ample Storage Recessed Lighting Knockdown Ceilings Walk out to Rear Paver Patio Anderson Sliding Glass Doors Gas Fireplace Gaming Area with TV Mount and Cable Access Built in Entertainment area with Surround Sound Rear Entry to Lower Level Garage Office with Custom Built-Ins, Cable Access & Cat-5 Lines Private Exercise Room Worsborough Heated Floors with 4-Zones Additional Lower Level Laundry Custom Oak Cabinetry

Master Suite Double Six-Panel Doors Tray-Vaulted Ceilings with Custom Lighting Custom Window Seat Security System Panel & Cable Outlets 2-Story Walk-In Closet with Center Island

Master Bath Details

Double Vanity w/ Raised Sinks Custom Tile Throughout Worsborough In-Floor Heat Steam Shower Programmable bath & Soaking Tub Custom Birch Cabinets & Cambria Counter Tops Dressing Vanity

Exterior Features Generously Landscaped Irrigation System Brick Front & Hardie Board Siding Paver Driveway and Walks .557 Acre Lot Maintenance Free Rear Deck with Custom Railing Dedicated Gas Line for Grill Landscaped Fire Pit w/ Paver Surround 3+ Car Heated Garage w/ Wash Sink Lower Level 3-Car Garage w/ In-Floor Heat, Rear Access Doors & Wash Sink Sealed Garage Flooring Soffits are Wired for Holiday Lighting

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3555 Willow Lake Blvd Ste. 100 Vadnais Heights, MN 55110 651-379-1581 joeholmes@kw.com

HOME & STYLE James J Hill House - Historic Victorian era home near Mississippi Gorge Regional Park

Victorian Homes

emerged in the period between 1830 and 1910, during the reign of Queen Victoria. The Victorian era spawned several well-known styles, including Gothic revival, Italianate, Second Empire, Queen Anne, stick style, Romanesque style and shingle style.

A common mental image of a “Victorian” home looks much like a dollhouse with elaborate trim and bright colors. But the term “Victorian architecture” actually refers to styles that

The Victorian styles evolved largely from the imposing, elaborate Gothic style, which appealed to the romantic

Victorian idea that fashion, architecture and furnishings should be beautiful rather than practical. A wealthy Victorian woman’s clothing, for example, involved corsets, hoop skirts and dresses that used yards of fabric. It made sense for the trendy home designs to reflect that excess as well.

Architects took the ideas of Gothic architecture and added French, Italian, Tudor and even Egyptian details. Designers were free to combine the styles to create several different well-known styles -- and combine the styles as they saw fit. As a result, there are few Victorian homes that look the same.

Ideas from the Gothic style may have started the Victorian styles, but a kick from the Industrial Revolution nationalized the trend. Steam-powered sawmills could create elaborate materials cheaper and faster.

As a result, late Victorian homes became increasingly ornate. Even lower-income families could afford trim and patterns to turn their existing homes into “folk

Victorians.�

The Queen Anne style came into fashion in the 1880s, at the height of the mass-production of architectural trim. These elaborate, brightly colored homes are the image most people think of when they picture a Victorian home.

As the Arts and Crafts Movement began to hit America, critics accused the Victorians of needless complexity and clutter, advocating a more streamlined, handcrafted home. The style fell out of fashion, but is still very prevalent in historic communities around the country.

REDUCE STRESSORS Buying a home is extremely

HOME BUYING of

Determine what you can truly afford.

Well, there are no surprises here: Your first step in the home-buying process is to determine your budget, just as you’d likely do for any other major financial decision.

But where should you start?

“As a general rule of thumb, you should be looking at home prices that are two to three times your annual income,” says Tom Gilmour, a CFP® at LearnVest Planning Services. “This helps ensure that you’re not taking on a larger mortgage commitment than you can afford.”

Speaking of mortgages, Gilmour recommends that payments generally not exceed 28 percent of your monthly gross income — but if you have other high costs, such as private school tuition, it can be wise to pare down this percentage even more. If you’re not sure what’s realistic, consider seeking help from a financial professional, who can help walk you through an appropriate breakdown, based on your individual situation.

Once you’ve defined your budget, it’s time to look at your cash reserves. Gilmour suggests saving up a minimum of 20 percent for your down payment in order to avoid having to buy private mortgage insurance, plus another 3 percent for closing costs. (More on that later.)

You’ll also want to make sure you have enough savings left over to help pay for any home improvements, decorations or miscellaneous moving and maintenance costs that may pop up — in full. Translation: You should not be using your emergency fund to cover these costs.

“Being a homeowner often comes with surprises, like a burst pipe in the middle of the night that needs to be fixed right away,” Gilmour says. “So you need to be financially ready for these surprises, which means you shouldn’t deplete your emergency fund for expenses like furniture or remodeling.”

stressful. Here are some tips on how to reduce your stress as much as possible.

on your budget, may not be sustainable.”

As for the length of your loan, Gilmour favors a 30-year term over 15 — even if you think you can pay off your home faster.

“Building equity in a home can be a good way to grow your wealth, but it’s important that you do so in a way that doesn’t stretch your finances too thin,” he cautions. “Things can get really ugly when the housing market declines, so it may be a good idea to take out a 30year mortgage but accelerate your monthly payments as if you had a 15-year mortgage. If you ever need to lower your payment in the future, you’ll still have that option.”

Next up on your to-do list: Apply for a pre-approval, the process in which a lender reviews your financial information — like your credit report, W2s and bank statements — and commits to giving you a mortgage for a specified interest rate. It’s a good idea to consider doing this now because it can prove to a seller that you’re a qualified buyer, and once an offer is made, the bank will just have to appraise the home — not the property and your finances.

But a word to the wise: A bank may approve you for a larger loan than you’ve determined you can afford. So don’t be seduced by their findings — and stick with the number you landed on in step one.

Decide which house features are must-haves vs. nice-to-haves.

It’s the rare lucky person who finds the perfect home within their budget, so before you go house hunting, brainstorm a list of what you absolutely must find in a home — and which features are simply nice extras.

Examples of must-haves might include the number of bedrooms and bathrooms, proximity to work and other places you frequent, and access to your preferred school districts. You might also have a strong preference on the amount of outdoor space a house offers, and whether it’s move-in ready.

Figure out which mortgage is the right fit for you — and get pre-approved.

Things that shouldn’t be on your must-have list? The way a house is decorated, well-manicured landscaping, a pool — or anything else you can easily fix or install yourself.

Now that you’ve nailed down your numbers, it’s time to start shopping for a mortgage lender with a reputation for good customer service and timely closings. You’ll likely have a lot of questions — like how long the process will take and what the qualifying guidelines are — so choose a lender that answers them all satisfactorily.

Refer to this list if you need help down the line making an objective decision between two or more houses — as well as to remind you of what’s really important, versus what could be luring you to pay more than necessary.

Next, decide which mortgage makes the most sense for you. There are plenty of different options to consider. Although Gilmour advises choosing one of the most common two: a fixed-rate mortgage, in which your interest rate remains steady for the duration of the loan, or an adjustable rate mortgage (ARM), in which your rate fluctuates to reflect market changes. “[ARMs] can be a good option — but usually only if you plan to live in your home no longer than the original fixed period,” Gilmour says.

“Otherwise, if the interest rate rises, you could find yourself with a mortgage payment that’s higher than you planned and, depending

Start house hunting, and determine whether you’ll work with a real estate agent.

Now for the fun part: house hunting! Browsing online resources like Trulia for available homes in your neighborhood is a good place to start, and can help confirm whether your budget and house must-haves are reasonable in light of what’s for sale.

This is also a prime time to decide whether you’ll hire a real estate agent, if you haven’t already. While you’re under no obligation to do so, there

But here’s where it can get tricky: You don’t want to lowball your offer, and risk losing the home to another buyer or insult the seller — but you also don’t want to pay more than is necessary. So how do you land on the ideal number?

While there are no hard-and-fast rules, a few factors can help inform your decision.

First, look at other home sales in the area. Is the house you want priced reasonably in comparison? Did other homes sell for less or more than the asking price? If they sold for an amount that’s comparable to your seller’s list price, that’s a good indication you should be offering a number close to asking.

Next, consider how long the home has been on the market, and how incentivized the homeowner is to sell. For example, if the seller is living in a transition home while waiting to sell, you may have a better chance of getting the seller to accept a discounted offer. But if he’s casually putting the home on the market to see how much he can net, the seller may be more apt to wait for the perfect price.

Lastly, what’s the market like in the neighborhood? Is it like New York City, where condos get snatched up with all-cash offers, or are you in a Las Vegas-esque location, where empty homes are a common site? In the former situation, it may be a good idea to start with a strong offer to beat out an army of other suitors, whereas you may have more leeway in a market like Vegas.

Review the contract carefully, and submit your mortgage application paperwork.

The seller accepted your offer — congrats! But before you sign on the dotted line, you should make sure to review the contract thoroughly and understand every single clause.

Pay special attention to contingencies in the contract, which spell out situations when you can back out of the sale to help protect yourself in are several potential benefits to working with one. First of all, an agent case something goes wrong. For instance, such scenarios can include can provide access to more home options than you’ll likely find yourself, if you discover that the home has serious physical defects or if your as well as set up viewing appointments. Since home-buying can be an bank rescinds financing. emotional process, an agent can also act as a mediator between you Speaking of defects, now is also the time when you’ll get the home and the seller. inspected, which typically costs between $200 and $500. If there are To find someone, interview several buyers’ agents — this means they exclusively represent you, and not the seller, as well — until you identify someone who understands your needs and makes you feel comfortable.

As a final step, check your state’s real estate licensing board’s website to ensure they’re registered, and don’t have any complaints or suspensions logged against them.

issues, such as a non-functioning fireplace or an old boiler, you may be able to ask for a price reduction to help cover the cost of repairs.

And if you find any deal breakers, such as an unstable foundation or serious mold, you have the option of backing out now.

Once your inspector confirms that there are no big defects that could affect the home’s value, you’ll submit a mortgage application. Review But whether or not you decide to hire an agent, you should hit the ground all closing costs — the ones you’ve hopefully saved up 3 percent to pay for, which might include an attorney’s fee, title insurance, and partial running now on viewing as many houses as possible. property taxes — before you sign the contract.

Research homeowner’s insurance.

Sign the papers!

Your lender will likely require the name of the agency providing you with home insurance, which is why you should shop around for a quote while Before the big day, you’re entitled to a walk-through to confirm that nothing has changed since the inspection. After that, make sure you you’re still house hunting. have all the money required for the closing wired into the correct Basic insurance typically covers fire, theft, storm damage and liability account. should someone get injured on your property and sue you. But you can also add on riders for things like expensive jewelry, furniture and home Ask the settlement agent for copies of all the paperwork you’ll sign office equipment, as well as choose to get additional flood insurance if before closing, so you can carefully review them at your leisure. You’ll be putting your John Hancock on several items, including the HUD-1 your home is in a flood-prone region. settlement statement, which details all of the costs related to the home To find a provider, you can shop around online, from agency to agency, sale; the Final Truth-in-Lending Act statement, which outlines the cost or use an independent agent, who can provide several quotes to review of the loan and the interest rate; and your final mortgage paperwork. at once. It varies based on your area and, of course, the value of your On closing day, bring your photo I.D., as well as any paperwork you home, but you can estimate your costs here. received throughout the home-buying process, including insurance and home inspection certificates.

Put in an offer.

Once you’ve signed the paperwork, you’ll be handed the keys … and So you’ve fallen in love with a property that meets all of your needs and you’ll officially become a homeowner! some of your wants — and it’s within your price range. Let’s make an offer!

Listings area

Coming soon...

Here is a preview featuring some

12130 Vermillion St NE, Blaine 2 bed / 3 bath Twin Home 1,834 Sq Ft, 2 car garage

of our upcoming Spring listings!

If you have any questions,

4793 Wood Ave, White Bear Lake 3 bed / 2 bath SIngle family home 1,233 Sq Ft, 1 car garage

contact us today at:

651-379-1581

1809 Beilienberg, Woodbury

joeholmes@kw.com or visit us at:

3 bed / 3 bath Single family home 2,560 Sq Ft, 2 car garage

5315 W Bald Eagle Blvd

www.holmesgroupmn.com

4 bed / 3 bath Single family home 3,105 Sq Ft, 4 car garage

7969 Chesshire Ct N 3 bed / 3 bath Single family home facebook.com/HolmesGroup

linkedin.com/in/HolmesGroup

twitter.com/HolmesGroupMN

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2,816 Sq Ft, 3 car garage

Have Questions?

We are available virtually any time! Call Us: 651-379-1581

For a complete list of our homes, please visit: www.holmesgroupmn.com

8381 21st St N & 8345 21st St N in Lake Elmo

Beautiful lots available in Lake Elmo. They are located in the

lovely Torre

Pines

neighborhood. The homes in this neighborhood sell for $600,000 and up. These lots are great for investment, or to build your dream home!

Q&

Joe answers questions

he received from clients. Feel free to submit your own questions. Tweet us @HolmesGroupMN

Follow us on Twitter! https://twitter.com/HolmesGroupMN

A as early as February.

When is the spring market?

The spring market from a real estate perspective comes well before spring.

Generally, people think of green grass and leaves on the trees but for us in Minnesota, that takes until May or June and by then the spring buzz is on its way out. We’ve seen the spring market come a little earlier as the years go on and “spring” listings will start to hit the market

When is the best time to list for spring?

We customize every listing around the seller’s needs & wants. The best time is what’s best for them. If you were to ask me with all other considerations aside when the best time is to list a home, it would be a mix of high demand and low supply – Feb, March are usually pretty productive months!

What home improvements should I make?

Wow, I could ramble on this for a while. Simple is best if you’re looking to make a solid impact while being cost efficient. I can’t say enough about the buyer’s first impression when they walk in the door. A home that is staged well, clean & organized goes a long way.

Simple cosmetic updates to flooring, carpet, paint & staging are where you can actually make money in a quick & efficient way.

our listings from others out there. We start with presentation by bringing in a professional stager.

We also have a long-preferred vendor list in case we all agree that updates or improvements would benefit the sale. When those items are complete, we capture your home’s best image with professional photography. From there we convey a sense of security to the buyer and can offer pre-inspections, home warranties and sometimes even have the home appraised prior to listing. When you blend great presentation with peace of mind for the buyer, your home will stand out above the rest.

If we need to sell and buy on same day, how do you manage that?

We manage that delicately! It’s best to have a contingency in place for the ”what if’s” in life as we must rely on other people to make it work well. The buyer of your home is very well vetted by our team and it starts there. If that sale is delayed for an uncontrollable reason, we must then extend that delay down the line which can get complicated. Communication is paramount with all parties involved, from the buyer of your home to the seller of the one we’re buying.

Everybody should work as a team as we all have the same goals. It’s delicate and those days usually go well without issues and always a good idea to have back-up plans.

How do you make our property stand out from other spring listings?

This question hits on what we all the law of differentiating. We take several steps to differentiate

Remember we are always here to help in any way we can!

Joe Holmes 651-379-1581 joeholmes@kw.com

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3555 Willow Lake Blvd. Ste. 100 Vadnais Heights, MN 55110

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Eagan Executive Closing Center & Corporate Headquarters 1915 Plaza Drive Suite 205 Eagan, MN 55122 Email: contact@gcstitle.com Telephone: (952) 895-8400 Fax: (952) 895-8401

WHO WE ARE AND WHAT WE DO At GCS Title we have a commitment to excellence. We don’t want to be the biggest, but we do want to be recognized as the best choice in the title industry.

We differentiate ourselves by our commitment to strategic partnership with our clients. We feel that pricing and service are a given; no matter where you go. We excel by being upbeat, fun to close with, and a great place to work.

Our entire team is committed to your success and helping you grow your business! At GCS Title, you will truly discover the difference of working with a world-class team.

Examples of coverage include but are not limited to the following: Invalid documents completed by an expired attorney Invalid deeds delivered after the death of the grantor Fraud Claims for unpaid estate inheritance and gift tax against prior owners Undisclosed descendants of former owners Protection from financial loss due to demands charged against the title to your home, up to the cost of the title policy Payment of successful claims against the title to your home covered by the policy, up to the cost of the policy False impersonation of the true title holder of property Forged documents Deeds by persons of unsound mind, minors, or supposedly single persons but actually married.

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3555 Willow Lake Blvd Ste. 100 Vadnais Heights, MN 55110 651-379-1581 joeholmes@kw.com