Is This The Right Time To Buy?

The right time to buy is a time when you:
1. Need a place to live
2. Would be helped by the tax deduction for interest and real estate taxes
3. Have the downpayment or can get the downpayment
4. Would like to own an investment property
5. Have extra cash and do not want it in the stock market or CD's
6. Are able to purchase a property at a low price, fix it up and still be
below the market value.


I will be the last person to tell you when the time is right for you.
Only you know that and don't hesitate letting others know that you are
in control of your finances.

Don't buy a property just to buy a property.

There are many good prices out there, however the lower priced properties
do need a lot of TLC. If they are in poor condition remember, that your lender
isn't going to easily give you a home equity loan these days to fix it up.
FHA does have a fix-up loan that we can talk about later.

As a Real Estate Agent I do see some properties that would make a great home for
someone and I do see homes that (once fixed up) would make a great rental property.

So - Is it the time for you to BUY and HOUSE? -
If you think it is just call me and we can talk about it.
I will be the devils advocate towards you and fill your brain with lots of
information so you can go home and think about it. I guarantee you will not
every be disappointed about being educated first. You can always buy a house.
My goal is that IF you decide to buy and house that you will be satisfied
not only with the home, but with the entire situation. I don't want to put any
of my buyers in a difficult situation.

What to do in todays Real Estate Market?

The market has been a bit testy these past few weeks. For stock holders and for home owners.

How would or should you handle your finances in this market?

I have just a few suggestions:

1.) Take an inventory of your present financial situation to find out how much money you have
that is liquid. You should plan to have at least 3 months worth of expenses on hand.
REMEMBER THAT NOT TOO MANY PEOPLE ARE MORE THAN 1 PAYCHECK
AWAY FROM BANKRUPTCY. Don't be one of them as you may know many folks
are being laid off from their jobs.
1. Home heating costs are rising.
2. Food prices are rising
3. Gasoline although settling back are still very high.

2.) If you are renting and thinking about buying a house you should do a new budget
using approximately 29% of your gross income for housing expenses. That is for the
principal, interest, taxes and homeowners insurance. Your combined debt (including
the house payment should not be more than 38% of your gross income. So remember if
you have a car payment, credit card payment, child support, student loan or any long
term dept ( more than 6 months remaining) the monthly payment amount must be added to
the house payment and it should not exceed 38% of your gross income.
THIS IS HOW IT ALWAYS WAS BEFORE THE RUN AWAY MARKET.
3.) You will need a down payment these days. For Government loans (FHA) you
will need to have 3.5% of your own money into the downpayment etc. (This can be a
gift from a relative) The new deal is that the lenders want you to have an equitable
interest in the property. They do not want it to be too easy for a borrower to just
bail out of the property when the going gets tough.
4.) You can still ask the Seller to pay up 3% - 6% of your closing costs.Depending upon your
downpayment.

Well what can I say, it's been too long since we last wrote. It seems that summer gets crazy and time gets away from us. I decided to share with you the "time out" I took in Colorado this past month. We were very fortunate to have been given the opportunity by my cousin Jenna (She's like a sister to me) and her husband's family the Walker's, to see as what I think is the most beautiful part of Colorado.

It's always nice to get away but this is really getting away where no cell phone or e-mail could ever be used. To say the least roughing it on the Green River. I have never felt to small but so content. It's nice to have life put back into perspective by appreciating the best things in life. Life, So simple......

"One of Our Vessel's"

"The Gang"

and of course the view!

Thanks Guys!!!! Your the best!!!!!!!!

It's been awhile!

Well it must be picking up since we have not had the time to post latley. It seems like a little more work getting the properties closed in this market, but they are definatley selling. It seems that every year 4th of July hits and people start to take more vacations and realize that summer is getting closer to an end. This is a normal slow time in the market.





-On a more personal note, we had decided to take a family vacation camping. (Yes, Mary does camp!) It was a much deserved rest for the family and good to get together.

Now that we are back and refreshed we are ready to go! If you've read the papers lately

you are possibly worried about your biggest investment. If you are not selling at this time you

have nothing to worry about. If you bought 4 or more years ago you are more than likely still okay provided you didn't but a town home. The town home market has sunk deeper than the

single family home. When you read a 13 - 14 % decline in home prices you should take into consideration that the averages include a mix of townhomes and single family homes.

If you are really concerned call us and we'll be happy to do a market analysis of your home.

This is the latest - If you are an FHA buyer who wants to use the gift program for your down payment you may want to know that in September that program will go away. At that time you will be required to put 3% of your own money into the property. You will be able to get a gift from family however, but most of you do not have parents who give you downpayments.
So the bottom line is to buy sooner not later.
Any questions please call and we can help you figure it out.
Have a geat week!!!!

Is Summer Every Going to Come?

Is the weather taking it's que from the real estate market or is the real estate market taking it's que from the weather? Right now both are a little cool. We know that eventually we'll be talking about how hot it is outside and ask ourselves why we didn't trust the process. Summer comes
every year - sometimes rather slowly but it does come.

The same with the real estate market. I can speak from experience that eventually the market
will turn around and the value of homes will rise. Just take a look back in history.
When I started my career out of high school as an abstract clerk ( typing the title entries
into the abstract of title) I would find interest rates as high as 12 and 13 percent way back in the
late 1800's and into the 1900's. Interest didn't stay at those rates. The rates varied according
to supply and demand. I also remember in the 1960's (now I'm dating myself) how our office
crew did every kind of cleaning job and eventually played cards at work because we were not
busy enough. (That's when a boss was concerned about laying anyone off because he knew he
would be causing a real income problem for families.)
Not only did this happen in the early years it happened in the early 1980's too. Interest rates
were at 13 to 15 percent and the people buying were transferees and those who could
afford the high rates. At that time you could not lock in on an interest nor could you get a loan
approved in less than 60 days. You actually had to have a down payment to get a loan. Everything was done manually. We had no fax machines, no
internet and no text messaging. Can you believe we got anything done?

Today we can lock into an interest rate as soon as you have a purchase agreement, you can
be pre-approved for a mortgage before you start looking and you can have the seller
pay up to 6% of your closing costs. How bad is that?

It's not bad. What are we complaining about? So interest rates are at 5.875% to 6.125%
We can get pre-approved and we can still put only 3% down. Not only that, FHA
loans are assumeable!!! This is a great time to buy. The price of homes are at the lowest
level that they have been in years. There is still an abundance of homes on the market.
So what if you take a hit on the house you are selling. You can make it up on the house you
are buying.
Remember - tomorrow is a new day. Just as the weather changes so does the market.

Timing Is Everything!

How much in this world can any one individual really control?

We try to buy gas when it is at its lowest for the week.
We try to buy the bargains at the grocery store when they are on sale.
We try to purchase stocks and mutual funds at the low end rather than the high end.

Can we really time the market? Rarely!

What we try to do is to watch the gas prices,the grocery prices and of course the
stock market. We do our homework. When gas comes down and we need gas we don't wait
for it to go even lower unless we plan on staying home until it does.
We use coupons to buy groceries to save even more and we buy stocks and mutual funds
as they are going down. We do all these things knowing that they could go still lower,
but when we need groceries, gas or we need to put money into retirement
accounts we can't wait for the time to be exactly right. It is an unknown.
No one can predict if and when we will reach the bottom.

When we need a place to live we have the same options - we can wait for houses to
go lower. We can sit in an apartment or rental house, continue paying rent (helping
someone else pay for their property) or we can tell ourselves that the market
looks good today and if I purchase now I'll get a good buy. I'll have a place to live,
I'll get a deduction for the interest and property taxes on my income tax return and
I'll gain equity for the future.

An agent who knows what they are doing can show you how owning your own home
can be a good investment even if it doesn't appreciate in value for a couple of years.
Kari and I are willing to start from the beginning and help you understand whether or not
this is the right time for you to purchase a home.

We have sellers who are motivated to sell, we have foreclosure properties and
we have builders willing to work with you to construct a new home.

We are here to help you understand this market and to work with it, not against it.
Remember - You make your money when you buy - Not when you sell.
You Can Buy Right With The Help Of Mary and Kari.
Call Us - We'd Love To Help!

Signs That The End Is In Sight (Blah Blah Blah)

Just an FYI I have been talking to lots of Contractors and People in the Home
Building/Buying Business.
The concrete contractors are saying that they are doing more bids than they have in a long while.
The builders (at least most of those I talked to) are going to have work this year.
More people are doing loan applications and pre-approvals.

Now, how can that be anything but good news?

We can't expect everything to go back to where we were a couple of years ago, but we can
expect the market to start to stabilize throughout this year. I really am a realistic person and
realize that we have far surpassed a normal appreciation for the past 10 years.
Once we've stabilize then you can expect appreciation to start upward.

Will it be next year? The year after? If I could tell you that I'd be looking at property in
Hawaii. No one can predict the future. But we know that lumber prices haven't
dropped very much.

Our biggest problem right now are the multitudes of foreclosure properties and
the over supply of townhomes and condos.

If the government steps in to help out those in trouble with their mortgages and the
lenders are required to help these people, then we will see the bottom much sooner.

My suggestion:
1. If you are going to refinance or even look to buy call Kari and me first.
We understand the mortgages that are out there and we can direct you to lenders that
we use and trust.

2. If you would like a list of all the foreclosures in the Hastings area just e-mail us or call
us at : karistorkamp@edinarealty.com - 651-470-0709
marymurphy@edinarealty.com - 651-353-9838

Persistence Pays

Today we closed on a house that was one of the most rewarding closing I can remember in awhile. The buyer is a single Mom with 2 dependent children. She has been trying to purchase a home for at least 18 months. She did find one in Red Wing about 8 months ago and because of the changing market and a poor loan originator she did not get the loan. This happened at the last moment when she had already given her notice and was to be out of her apartment by the 1st of the next month. A friend of hers
suggested she contact Margaret Swanson with Lake Area Mortgage. The buyer met with her and started the process to purchase. This included raising credit scores, establishing that she had enough self employment income and other things that needed to be established prior to her even looking for a house. The buyer then called me approximately 6 months ago and we started looking for homes under $110,000.
That was challenging to me also. We would look for homes because this buyer wanted a yard for her grandchildren. We checked in Red Wing and Hastings. I was working with Margaret to understand the programs she was going to use. This lady combined about three different programs and came up with a zero down loan. I couldn't believe it.
The first thing was a decent credit rating (which she helped with). Then Margaret
used a CASA program thru MHFA. She obtained a Grant thru AHP alloted thru
Lake Area Banks + she received a monthluy payment assistance thru CASA also.
Margaret Swanson of Lake Area Mortgage you are the HERO of the month.
The Buyer now owns her very own single family home with a yard and at a payment
she can afford. We found her a home for $105,000 (by the way it had all new plumbing,heating,cabinets and flooring) that would not nickle and dime her to death and one
that she is proud to own.
Today is the best day ever because we could help this buyer.
Congratulations Maggie. AND
Thank you Margaret.

If you are a struggling buyer or a buyer who will breeze through the loan process call
Mary and Kari and we'll hook you up with Margaret.
Have a great week!
Smiles

Negative News follows Asset Bubble?

Despite the downturn in housing we should think in positive terms:i.e.
1.Downturns in the economy provide people with many opportunities to make money.
2.For Buyers the timing could not be better. With many opportunities to
purchase homes that are either in foreclosure or finding a motivated Seller
who must liquidate to move to another job this is the time to buy.
3.Most of your top investors buy low and sell high. You can be one of them.
4.In a short period of 5-6 years most Sellers saw their home value increase
from 45-85%. The normal for a time period in all the past years has been
4-5%. I'd say that we homeowners should under normal circumstances have
seen our home values go up only 25%. So what's the big deal! Yes we have lost
some of our gain, but look what the stock market has done over the past months.
We have had huge gains in the stock market too. So if these two markets level
off a bit have we really lost any money? Not to mention that we needed a place to
live, we received a tax deduction and we don't have to pay capital gains tax
on our profit up to a certain amount. We are still making money on our homes.

Do we really have a c omplaint? Maybe if you bought in the past 3-4 years.
The rest of us should count our blessings.
So we won't make as much as we once would have. We can't go back 2-3-4 years and
sell our stocks either.

It's time to be realistic and remain positive. This market will not last.
When we look back over the long run we'll clearly see the positive.

A Valentines Preview!

On a personal note............

I am so excited about our ad in the Hastings Paper this week that I am posting a sneek peek. I just fell in love with this photo. It is just a tribute to how in love the greandkids are with Nana and Papa! I picture is worth a thousand words! See for yourself! HAPPY VALENTINES DAY!!!!

-Kari

It's All About Attitude

With all the media attention the housing market has been receiving it's no wonder
buyers are thinking that this is a rotten time to buy a house.
The truth is that drama sells advertising and newspapers and it gets attention all over.
I for one am sick to death of all the negative attention. Let's be realistic.
Some of what you are hearing and reading is true. However, the truth of the matter is that there are some really great buys in the market today. Interest rates are
hanging lower than they have been for a long time and Sellers are willing to
negotiate their asking prices. No matter what happens people will still have a need to buy or sell. The difference now is that you Buyers have the upper hand.
Don't be swayed by some reporter who says the market is terrible - check it out for yourself. It takes a while to search out the market, to get pre-approved and to
feel comfortable that the offer you may choose to make on any given house is a fair and equitable offer for you and your situation. You only learn to do this by
getting out there. When the right house comes up you'll KNOW because you did your homework. If you have a negative attitude you may never get into a house of your own.
Questions? Just write or call us anytime.

Market Realism

Economic downturns provide ample opportunities to make money.
Remember - Most Sellers are also Buyers. If you sell at a discounted
price and you have purchased from the mid 1990's through 2005 your
home possibly appreciated up to as much as 80%. So now you have to take a
discounted price of 10 to 20%, you still made a nice profit.
When you go to purchase another home you have the advantage of a buyers market,
which means that there are many homes and few buyers. Your purchase price
will be discounted at the same 10 to 20%, possibly more with a highly motivated
seller. The interest rates are as low as 5.50% this week also.

However, if you decided to do a home equity loan to purchase a vehicle,
pay off credti cards or do remodeling, then you may have a situation
where you would need to bring cash to closing. If you don't need to sell
and you find yourself in this situation I'd suggest you wait until the market
changes. However, it may be a good time to refinance if you are in an adjustable
rate or interest only mortgage plan. Interest rates are favorable so check it out.
We have some favorite lenders that we recommend because we know they will not
take advantage of your situation. Call us for their names and telephone numbers.

We are anticipating that we will work even harder this year, but remember
there are always people who must sell and must buy. The real estate market is
not dead!!!!

January Updates

If you've kept up with the news lately the only thing you seem to hear is that the real estate market is really depressed (bad). I would agree that some of the things you read or hear are true but most are exaggerated to sell newspapers and to capture a listeners attention. It should be no surprise that the market would level off at some point, The surprise is that no one (no one) predicted that there would be a downturn that affected so many people. The economists are not always right either.
This is my prediction - Now the economists are saying that 2008 will be another
poor year, with foreclosures up, inventory high and new construction in the tank.
Well, I already see rumblings that this could be a better year. First of all, Buyers are more aware that there are bargains out there. They also realize that the interest rates have come down (5.85%) if you have a good credit rating.
Sellers who need to sell will always be with us. Either they are forced to sell or they simply choose to sell in this market. Retirement, Downsizing, Relocation etc. are all reasons someone may choose to sell. These people will not go away and are now more aware of the new pricing needed to sell their home. Simply put if we have a willing buyer and a willing seller we will put the transaction together. So, don't hesitate to check this market out at the very least.