Homeowner Association Rules: How They May Affect Your Buying Decision

Beyond the mortgage, maintenance and property taxes of a new home, you may not be aware that many newer communities require you to be part of the Homeowner Association (HOA). If you’re wondering about what the HOA entails and how this can impact the home and community you live in, here are some facts that may be important to know before you buy.

What Is A HOA?

If you happen to have a Homeowner Association present in your new community, it’s important to know that this body works to enforce the rules of the neighborhood. Made up of a group of volunteers that live within a given area, different community members will be responsible for different aspects of the community. While there are annual fees for an HOA and they vary from place to place, communities with this type of association often come with a higher price tag on the market.

The Types Of Rules Enforced

The rules that are enforced by a HOA differ depending on the community, but they can range from issues as diverse as the height of fences to the number of pets per residence to the amount owed for fines. While you may have found your ideal home in a great community, it can be worth looking into the rules of your local HOA so that you can determine if they’ll work for you. If there are any red flags, you may want to consider your options or decide if the sacrifice is worth it.

Dealing With The Rules

It’s important to stick to the rules of the community you live in because you can be taken to small claims court if you don’t pay your fees or respond appropriately to complaints. If you’re in a position where you disagree with the rules and would like to pursue another option, you will want to make a written request to the board and wait it out. You may not get a response very quickly due to the voluntary nature of most HOA, but it’s important to be compliant with the regulations until your request is approved.

It’s great news if you’ve found your dream home in a nice new community, but it’s important to be aware of the HOA rules that you’ll have to comply with. If you’re currently on the market for a new home, contact me at owen.riess@cambriamortgage.com or give me a call at (952) 486-6131 and I can connect you with a great local real estate professional that can guide you through the process.

Owen Riess

Mortgage Consultant, NMLS #543286

Spring Cleaning

Spring is around the corner, really it is, and it’s time to get your home in order!

Spring cleaning can be fun and easy if you follow some general guidelines, which are sure to get your home ready for the nice weather and looking as beautiful as the weather is about to. Kick the winter clutter to the curb with these spring cleaning tips.

Start With The Closets

Spring is here, and winter wear is no longer needed! It’s time to box up all of the winter boots, jackets, gloves, and scarfs until next season.

Starting your spring clean with your closets is a good tip, and will get you prepared for the rest of the process while creating more space and organization in the bedrooms of the house. This is also the perfect opportunity to create a “give away” box full of clothes that are no longer being worn. I always recommend the local Disabled American Veterans (DAV).

Reorganize: Bookshelves, Countertops, And Desks

Reorganizing is the perfect way to prepare your home for the spring and summer. Good clutter is common in many homes, like useful books that are interesting for guests to read or decorations that offer a sense of warmth and character to the home.

So pick up the fallen and leaning books on the bookshelf, reorganize your kitchen countertops, and de-clutter your home office. For busy home offices, purchase organizational tools like additional shelving units, compile and file away old bills and receipts, and toss anything else that is no longer needed or of any use.

Get Scrubbing: Removing Stains And Odors

Getting ready for spring means removing the stains, dirt, and odors that accumulated in your home over the colder months. First, you should start with wiping your painted walls with a wet cloth to remove scuffmarks and dust.

If the water doesn’t do the trick, you can try mixing a little dishwashing soap in with the bucket of warm water. You may even want to repaint certain high-traffic areas, like entrance halls and the baseboards around the front door.

Next, you can go for the floors. Having a fresh carpet cleaning is sure to kick-start your spring cleaning; this may be something that you wish to have done by a professional. To make the most out of your carpet cleaning, have it scheduled for when the kids are out of the house for a while, and wait until the worst of the weather is over.

Make sure the kids take their shoes off inside, but get them to leave their socks on to avoid natural oils from getting into your freshly cleaned carpet. Vacuum area rugs in the same fashion, and mop the kitchen and bathroom floors at the same time you clean your hardwood floors.

Give the showers, bathtubs, and toilets in the house a good scrub. In the kitchen, empty the fridge and freezer of their contents, and give the inside a good scrub down as well.

Once the tidying, de-cluttering, and scrubbing are done, you will get to enjoy the fun part of spring cleaning: spring decorating! And while you’re at it, why not buy yourself and your home some spring flowers for a job well done.

If you’re doing a big spring clean this year because you’re looking to sell your home, these tips will get your home ready for any buyer’s eyes. And, don’t discount the value of a professional home staging company. Contact me today to get more tips on buying or selling a home, or the referral to a great real estate agent.

Owen Riess

NMLS # 543286 Equal Housing Lender

Marketplace Home Mortgage NMLS # 1082

Buyer’s Agent

Why You Need a Buyer’s Agent

A buyer’s agent is the real estate agent that represents the buyer in the purchase of a home.

Almost all home buyers start looking for homes online and visiting open houses.  The real estate agent listing the home is the listing (selling) agent.  They are under legal contract with the seller to represent the seller’s best interests in the transaction.

There are many reasons why you need a buyer’s agent to represent you:

1. They will look for a home on your behalf that meets your needs. This will save you time and money.  They can send you current and new listings for the criteria you select.
2. They are qualified negotiators that are working for you. They will pull together all of the information about what other houses are selling for that are similar to the one you want to buy so you don’t pay too much.
3. The Buyer’s Agent is someone to buffer you from pushy Sellers, pushy Listing Agents and anyone else who is not obligated to look out for your best interests.
4. Someone to help you understand what you must do to protect yourself in a real estate transaction so  you don’t end up with a crappy house that you paid too much for.
5. They can arrange private showing where you and they can review the home honestly and without sale pressure from the listing agent.
6. Someone to explain the whole process to you, from making the offer to getting the deal closed.

In working with many different buyers agents over the years, I would recommend that you meet with a few agents to see who you want to work with and feel confident in.  This is an important choice and you need to feel that they are working for you at all times. Attributes to consider in selecting a buyer agent:

1. Do they communicate open and honestly.  Do they return phone calls and email promptly?  Are they honest about a home that is not what you are looking for?
2. Do you genuinely feel that they are working for you?
3. Are readily available to meet with you and show homes?
4. Are they familiar with the communities you are searching in or are they willing to research to get the answers to all of your questions.

If you do not feel they are working hard for you it would be a good idea to look for a different agent, one that will consider your objectives, and help you to achieve them.

If you have any questions or would like to meet an excellent buyer’s agent please give me a call at 952.837.3366.

Thank you!

Owen Riess

Marketplace Home Mortgage, LLC

oriess@marketplacehome.com

NMLS # 543286

(952) 837-3366

Equal Housing Opportunity Lender

Social Media Dreams 2K14

 Sixty or seventy years ago our social network was held at zero dark thirty at the local café. Over coffee we discussed when to plant, and when to harvest, the price of seed, bushels per acre, and the weather. As we moved to urban and suburban our social network was in the yellow pages. I can remember sitting around the conference table with the executive staff trying to decide if we would spend $15K or $25K this year on yellow page ads. Then when the yellow pages showed up searching for our advertisement knowing this is how we would get found by our customers, old and new. Today, if the yellow pages shows up we don’t even look inside the bag it comes in. We pick it up and drop it in the recycling bin.

Today if we want to find something we Google it. If I can’t find you on Google, you don’t exist. Today, our social network consists of LinkedIn, Twitter, Instagram, Pinterest and Facebook. Today, social media finds you. Give it a test. Go to your Facebook page and type cowboy boots and it won’t be long before all the ads on your page are pitching shoes, boots and riding lessons. Now type, snow tires and watch how all the ads change to tires, travel and automobiles. Social media will find you.

I built and manage the LinkedIn company profile for a small Midwestern mortgage company (under 200 employees). LinkedIn has roughly 250 million individual users and 3 million company pages. I recently received a ‘top ten’ LinkedIn company page for 2K13 award. So when I say social media is about listening and engaging, not just broadcasting, you should believe me.

Announcing the Best LinkedIn Company Pages of 2013 http://blog.linkedin.com/2013/12/10/announcing-the-best-linkedin-company-pages-of-2013-slideshow/

There are lots of articles today regarding where social media is going, how important it is to business, small and large. How to build it, how to use it, how to use it better. This brings me to my ‘wish list’ for social media for 2K14.

I.  LinkedIn should allow your company LinkedIn page to be linked to your company Twitter account.

II. Twitter should provide an easy way to delete all DM’s in a single motion.

And, if you can add to that list peace on earth everything will be good. That’s my social media wish list for 2K14. I would love to hear what yours is, so don’t be shy let me know your thoughts, and wishes.

Happy New Year

Owen Riess

Autumn Leaves

The kids are back in school, the weather is getting cooler and your yard is covered in a layer of fallen leaves. Yep, it’s that time of the year again, but don’t think of fall leaves as a chore. They can be a useful resource for fertilizing your lawn or even decorating your home for autumn.

Finish The Raking

It’s tempting to just let the leaves lie in the yard. It’s good fertilizer anyway, right? Wrong. You should rake everything up as soon as the trees begin to look bare, or else risk the blanket of leaves smothering your lawn over the winter season. Gather them up in plastic bags and put them to use.

Refuse To Rake Leaves

If you can’t bring yourself to pick up a rake, you do have an alternative. Wait until the leaves are dry and crunchy and fire up the lawnmower once more before winter. Many mowers have a mulch setting that will chop the fallen leaves to bits.

The smaller pieces won’t suffocate your lawn, and the crushed leaves make a good fertilizer. If you’d rather use the leaf bits in the garden or a flowerbed, use a grass clipping catcher with your mower to gather up the pieces as you mow.

Use Mulch And Fertilizer

Fresh chopped leaves are a good homemade mulch. Put a layer on the garden and the flower bed to replenish the soil over winter. Also, be sure to put a thick layer around young trees and shrubs to keep them warm. If you really want to get the most out of your leaves, then take them to the compost pile.

Mix the leaves in with the regular green yard waste, and the leaves will boost the composting process into overdrive. The fully composted material makes a potent fertilizer.

Get Crafty

Set some leaves aside to take indoors. The changing colors of the fall leaves are part of the beauty of autumn. Why not bring some of that beauty into the house?

Fill a vase with leaves for a seasonal centerpiece, or use a wire frame to make a wreath for the front door. You can make leaf etchings with the kids or simply use one as a bookmark.

It’s sad to see so many fall leaves burned up in piles, or put out with the trash. The leaves on the lawn aren’t just a mess to be cleaned up. Inside or outdoors, autumn leaves are an easy, natural, and free material. Be sure to put them to use!

Owen Riess | Mortgage Loan Originator NMLS # 543286

Competing Against Cash

You’ve been searching for the perfect home for quite a while, and finally, you’ve found it! You get all of your finances in order and place an offer on the house.

However, you’re not the only one that loves the home, because there are multiple offers — and one of them is cash.

Cash buyers are seen as desirable because they’re almost always a guaranteed quick close.

They don’t have to borrow money from a bank therefore won’t have any financing hang-ups, which is where a large portion of offers fall through. Don’t worry; not all hope is lost.

Follow the steps below to beef up your offer and get your foot in the door.

Less Expensive Homes

If you’ve put offers in on homes at the asking price and are continually beat out by buyers that are paying more, then you might want to consider looking in a lower price range. This is an especially smart strategy for those living in fast-selling markets. By looking at less expensive homes, you can be the one that puts in an offer over the asking price.

20 Percent Down Payment

Save up a higher down payment for the price range of homes you’re considering. If you can come up with 20 percent, then you’re in a position to wave the appraisal contingency for financing with the bank. The more you have in cash, the better.

Take-It-Or-Leave-It Home Inspection

This means that based on the home inspection, you’ll take the property with all its issues, or you’ll walk away. What you won’t do is ask the seller to waste more of their time and money fixing every little problem that’s found.

Fees

Waive the seller concessions, such as closing costs and the home warranty, and pay your real estate broker’s fees. These extra costs add up in the mind of the seller and will show that you really want the property.

Going up against cash buyers can be extremely discouraging. But, just because they’re dealing in cash doesn’t mean they’ll get the property. Many investors think they can put in a low offer because they’re dealing in cash.

So show you’re serious about a property, follow the steps above and put in your best offer. You’ll be a homeowner soon enough!

Contact me and we will get you pre-approved right away.  Owen Riess

oriess@marketplacehome.com or apply on-line at www.owenriess.marketplacehome.com

 

“location, location, location”

The old real estate cliche’ about “location, location, location” is true, as the area of the city where your home is located will have an impact on its future value as well as your lifestyle.

So what factors should you consider when you are choosing which neighborhoods to house hunt within?

Proximity to Your Daily Needs

If you work downtown, living out in the suburbs means that you will be adding time for a commute onto your day.

While this might be worth the cheaper prices for properties out of the town center, it is something to consider when making your decision.

You will also need to consider whether the house is near shopping centers, schools, doctors, dentists and other services that you will need regularly.

Planned Developments

When you are choosing a neighborhood to buy in, do some research into what developments are planned in the future for that part of town.

For example, you might be able to get a cheap price on a home that is out of the way, but a new proposed highway leading straight into the town center that will be built in the next five years could increase property values considerably.

Overall Atmosphere

Take a walk around the neighborhood where you are considering buying and get a sense of the overall atmosphere. Are there a lot of families living there? Are there green places to relax? Are people friendly and saying hello to you?

You want to live in a place where you feel welcome and comfortable.

Property Values

Different neighborhoods will have a range of house prices and you will want to look for something with the right balance of value.

Some areas of town will be very expensive but very nice; other areas will have cheap house prices but might not be as pleasant to live in. Take the time to find the neighborhood that is in the middle, where you will find the right house, and neighborhood, at a good price.

These are just a few of the factors to consider so that you can choose the right neighborhood to buy in.

For more information about buying a home, feel free to contact me your trusted mortgage professional today.

Owen Riess

Home Financing Help

Getting the best mortgage financing for your new home can sometimes be a complicated process and, unfortunately, things can go wrong. Using a licensed and trusted mortgage loan originator can help alleviate many of these challenges.

There are certain mistakes that many homebuyers make when applying for their mortgages that can seriously damage their chances of being approved. If you are aware of the most common mortgage issues, you will be better able to prevent them when applying for your own mortgage.

Make sure that you keep the following tips in mind when applying for a mortgage:

Making Large Purchases Before Closing On The Mortgage

Many homebuyers think that they are in the clear once the mortgage deal is approved and they move forward on another large purchase such as a car or home furnishings. However, it is best to hold off on all major purchases until the mortgage is finalized, as additional debt will change your “debt-to-income ratio” which could mean that you no longer qualify for the loan.

Many lenders pull your credit information right before funding, so avoid any big-ticket items until you have signed on the dotted line.

Switching Jobs During The Mortgage Loan Process

When deciding whether or not to approve your loan, the lender will look at your salary and your job stability. If you make a career move during the process of applying for the loan, this could make your income seem unstable and could cause the bank to decline your loan.

Stay in your job through your home closing date to reassure the bank that you have a stable income; you can always switch careers later.

Having No Credit Card

You might think that the fact that you have gotten by without a credit card for this long would be a positive thing in the mind of lenders. However, having no credit history at all makes lenders nervous, as they don’t know how you will handle credit when you have it.

Instead, get a credit card that you repay in full every month, which will help to show them you can manage your credit responsibly.

These are just a few examples of major mistakes that home buyers make when applying for a mortgage. If you can avoid these issues, you will find it much easier to buy a home.

As always, call me your trusted real estate professional today to discuss your personal situation and get the best advice on your upcoming home purchase!

Owen Riess

owenriess.marketplacehome.com

Pay Off Your Mortgage

Paying off the mortgage on your home faster means that you will not only have the satisfaction of owning your own home sooner, you will also have the benefit of paying much less in interest over the years.

The faster you pay off your mortgage, the more money you can save, so here are some tips to accelerate your payment schedule.

Pay Your Mortgage Every Other Week (Bi-Weekly)

Did you know that if you take your monthly mortgage payment and divide it in half and then pay it every two weeks that you will end up making a full extra month of payments every year? This is called a bi-weekly payment program which has been around for a long time, and it’s still a good idea today!

You likely won’t notice the difference since the extra half payments occur in long months with bigger paychecks, but over the years this will end up saving you thousands of dollars in interest payments.

Make a Bigger Monthly Payment

Similar to the bi-weekly payment plan above, you can accomplish the goal by dividing your principal and interest portion of your payment by 12 and then adding that amount to your regular monthly payment.  You will be paying that extra payment every year, but spacing it out over each monthly payment.

Most homeowners using this tactic can shorten their term by up to seven years.

Put Any Windfall Toward the Mortgage

Was your tax rebate larger than you expected? Have you received an inheritance from your great aunt Rose? Have you won a cash prize in a contest?

Put any unexpected chunks of cash straight toward your mortgage instead of spending them. This won’t affect your budget at all, because you were never expecting or counting on that money in the first place. But once again, it can make a huge difference in the overall amount of interest that you pay on your mortgage loan.

However, keep in mind your particular situation. Spending every last penny paying off your mortgage as quickly as possible might not be the best option for you if you have no emergency savings fund or if you have a credit card languishing with high interest debt.

It is usually more important to deal with these pressing financial issues before attempting to save money on your mortgage. One great way to start your research on how to pay your home off faster is to talk with your trusted mortgage professional.  I can answer your questions and point you in the best direction for your situation.

Don’t hesitate to contact me with questions or just to catch up on what’s going on in the mortgage industry.

Owen Riess

Room for Negotiation

When you are looking to buy a home, it is important to keep in mind that no real estate price is set in stone.

There is always room for negotiation, and with the right techniques you may end up saving thousands of dollars on your dream house.

However, it can be tricky to get the right reaction when you are negotiating.

Here are a few tips that will help you to haggle your way to the best deal.

 

Find Out The Seller’s Motivation

If they really need to move and sell the property, it will be easier to convince them to negotiate on price or other deal points.

For example, they might be relocating for a job or the house might be close to foreclosure, which would give them the motivation to sell quickly at the price you offer.

 

Investigate How Long The Property Has Been On The Market

If the seller has been trying to sell the home for several months or longer, they will be much more receptive to competitive offers than a seller who just put their house up for sale last week.

 

Research Comparable Properties

Find out the price of recently sold properties in the same area that are comparable to your prospect.

This will give you an idea of how much you should bid on the house.

Knowledge is power in any type of negotiation, so arm yourself with as much information as possible.

 

Keep Your Cool

Even if you are absolutely head-over-heels in love with a property, refrain from showing your excitement to the seller.

You could lose any advantage you might have in negotiation if you let the seller and their agent know how much you really want the property.

 

Don’t Offend

Be careful not to bid too low. Sometimes sellers are offended by low ball offers and will refuse to work with you afterward.

Even when you are just attempting to get the home for a great price, the seller may become offended, which will leave you disappointed and empty-handed.

 

These are just a few tips to keep in mind for getting a great deal on your dream house.

If you’d like more help negotiating the price of a home, please contact me and I will recommend a licensed real estate professional that can help you negotiate skillfully.

Owen Riess