St. Cloud MN Real Estate Video Blog with Chris Hauck

What Do Higher Interest Rates Mean for Your Spending Power?

Welcome back to another St. Cloud real estate update!

Recently, people have been asking about where mortgage interest rates are heading. What kind of an impact will they have if they rise soon? As you probably know, the federal government has been buying mortgage-backed bonds at a high rate over the last few years, which has kept rates very low. However, the Fed has recently announced plans to phase out their buying program, which will result in the rise of the artificially low interest rates we've been enjoying over the past few years.

According to a recent article in the Kiplinger Letter, 30-year fixed-rate mortgages may rise to as high as 5.5% as early as next spring. The good news, however, is that 5.5% is not a bad rate. In fact, it's a historically good rate, seeing that the average over the last 30 years is over 8%.

Although only a modest rise is expected, you can save yourself thousands of dollars by taking advantage of our current rates. For example: If you were to borrow $200,000 today at 4.25%, the monthly payment will be about $980 a month, which is pretty close to the price of renting in today's market. If rates jump to 5.5%, your monthly payment would rise to about $1,135 - not a huge amount, but it could cost you tens of thousands of dollars if you plan on staying in the home for an extended period of time.

If you're entertaining the idea of moving, but are unsure whether now is the time to take the leap, we recommend taking a hard look at the numbers. If you want more home for your money, now is the time to find a wonderful home and lock in a low rate.

If you have any questions about mortgages, or real estate in general, we would love to hear from you. Give us a call or shoot us an email for the expert service you deserve!

How Accurate Are Online Pricing Models?

Just about everybody starts their real estate venture online nowadays. While there are a lot of useful resources on the web, there are just as many misleading ones. For instance, we compare Zillow's pricing with every single home we put on the market. Our software actually pulls up Zestimates for every comparable home sale in the area and every home on the market. We've found that there is a huge spread of inaccuracy on Zillow. Often, the Zillow estimate is as much as 20% over or under the actual value of the home. What's the point of that?

If you want to know the exact value of your home in today's market, we would love to help you out. We can give you a careful, detailed market analysis, so you can prepare to sell your home. If you plan on waiting until spring, we have a quick reminder: the spring selling season starts in January here in the St. Cloud area. We would love to meet with you and do two things: let you know what your home is actually worth and help you develop a selling strategy - what you can do to get top dollar, what your competition is doing, and what buyers are expecting to see in the spring.

Does this sound like the kind of expert advice that could make your life a whole lot easier? If so, don't hesitate to give us a call or shoot us an email. We look forward to helping you maximize your home sale!

Exciting News for Those Looking to Move!

We're very excited to share some recent news. Mortgage rates in the St. Cloud area have dropped unexpectedly. Rates are now as close to record lows as they've been all year. 30-year fixed-rate mortgages can be financed for under 4% interest and 15-year loans can be found for under 3%!

This development presents an incredible opportunity for home buyers. There are three distinct benefits of making your move now: lower payments, more home for less money, and the ability to pay your home off twice as fast. Sound like a sweet deal? We're not sure how much longer these conditions will last, so give us a call or shoot us an email. We'll help you explore your options and take advantage of this fantastic opportunity!

What's Going on in St. Cloud?

Many people in Central Minnesota have been wondering whether we're on the verge of another housing bubble. Luckily, it's not looking like it.

We currently have a stable market that is continuing to expand. We're seeing stable prices that are rising, but not dramatically. We're not seeing the kind of rapid price increases here like many metropolitan areas are. Currently, we have 6 months of inventory, which means we have a balanced market - neither buyers nor sellers have an advantage.

The reason some people think we may be on the verge of a bubble is the cost of new construction is increasing substantially. As the market gets tighter and inventory starts to decline, the price of used homes is going to rise.

Right now is a great time to make your move. Interest rates are still low and home values are continuing to appreciate. If you would like to take advantage of these fantastic conditions before they start to change, give us a call. We would love to help you achieve your real estate dreams!

What can waiting to buy or sell cost you?

Is it better to wait until you save a large down payment before buying? If you are selling, should you wait for the value of your home to go up before you put it on the market?

As a general rule, it's better to move soon than to wait. If you are trying to save up for a larger down payment, your monthly payment will only change by about $5 a month for every thousand dollars you save in today's market. If you wait to save up more money and interest rates rise, as they're expected to, your monthly payments could increase by hundreds of dollars.

If you are waiting for your home to go up in value, you may not have much luck either. Let's say you are selling for $150,000 in today's market, and looking to buy another home at $300,000. If both homes appreciate by 1%, your current home's value increases by $1,500, while the new home you plan to buy increases by $3,000. In this case, your new home's value has gone up more than you were able to save by waiting for your current home to appreciate.

As you can see, there aren't any upsides if you wait to buy or sell. If you have any questions about conditions in your specific area, or need assistance taking advantage of these ideal conditions, give us a call. We look forward to hearing from you soon!

How Can an Agent Help You Have a Successful Transaction?

Recently, a friend here in St. Cloud gave me a call and asked me question that I'm sure many other people have. He said, if he wanted to, he could just put his home on Craigslist where everybody can see it, rather than hiring an agent to do it for him. He said: "What exactly is it you do?" I'm glad he asked.

Buyers who are looking to buy For Sale By Owner (FSBO) are expecting a fantastic deal. They know exactly what the commission is and the money you're saving by selling the home yourself; they want that money in their pocket and then some! If they have a buyer's agent with them, that agent has a fiduciary responsibility to the buyer to ensure their best interests are being represented. In essence, the buyer has someone on their side working to get the best terms and price possible - while you're on your own.

If the buyer is working with an attorney, they can obviously only represent one party in the transaction. Attorneys who work for FSBOs tend to be more aggressive and don't always write a favorable contract with the seller.

As the process advances, a home inspection will occur. Inspectors also feel it is their responsibility to protect the buyer. They will find something wrong with any home, regardless of how new it is, and buyers will use the inspection report to their advantage. It is hard to come up with the appropriate response to some of the inspector's objections and, in many cases, can cost the seller thousands of dollars.

If you are working with a bank, the appraiser may not have the appropriate comparable sales to properly price your home. It is common for appraisers to come in from outside the area, which means they might not have the info they need to justify the price you feel you should get. It's an agent's job to make sure the relevant comparable sales are available to the appraiser, so the price comes in where you expect it to.

Sometimes, the lender has additional requirements that benefit the buyer. Lenders often feel they are an advocate for the buyer and will overstep their boundaries to try to protect them. This can often lead to a renegotiation, which slows the process down and hurts your chances of getting the price you want.

An agent provides protection against all the entities that could potentially work against you! We have tons of experience with buyer's agents, contractors, lenders, inspectors, and all the parties in between. We can make the transaction work in your favor by protecting your interests against those of the buyer. People who try For Sale By Owner often have multiple deals fall through - we make sure that doesn't happen.

In short: an agent saves you time, money, and a whole lot of stress. If you have any questions about the many things we can do for you, don't hesitate to give us a call or shoot us an email. We would love to hear from you!

The Winds of Change Are Blowing in St. Cloud

We have some good news for you today. The economy is improving and we are seeing the transfer market pick up. For the last few years, people have been reluctant to take a new job or leave their old one - but that's changing.

A lot of people are making moves they've been waiting to make for the past 3-5 years. This is good news for those of you thinking about selling your home, especially if you're in the upper-end market, because the upper management system is changing in our community. As always, if you have further questions about current market conditions, or are interested in buying or selling a home, please give us a call. We would love to assist you in any way.

Interest Rates May Be on the Rise as Fed Announces Change

Many people have been asking us lately, What's the deal with interest rates? Where are they heading and what will the impact be?

Over the last few years the Federal Government has been buying mortgage-backed bonds at a very aggressive rate. This has had the effect of keeping interest rates near record-lows, at about 4.25% for a 30-year fixed-rate mortgage. However, the Fed has slowly been reducing the amount of mortgage-backed bonds they are buying. The have announced that they plan to stop buying them altogether, and that could happen as early as October. The end result would be that the artificially low interest rates we have been seeing may not stay there. Many anticipate rates to jump as high as 5.5% as early as this coming spring.

The higher rates are still attractive to buyers, historically speaking, as interest rates have been around 8% on average for the last 30 years. But if you do the math, the small percentage or so jump in rates could have a huge affect on your spending power. For example, if you borrow $200,000 at 4.25%, your monthly payment will be about $983 a month; a rate of 5.5% would make your monthly payment about $1,135 a month. If you plan on living in your home for 10 years, you could save as much as $18,000 by locking in current interest rates.

If you have the option of moving today, we highly recommend it. We don't know how long it will be before we see rates fall this low again, so now is the time to lock in low rates for future savings. If you have any further questions about changing interest rates, please feel free to give me a call. I would love to discuss your real estate options with you.

Keep Your Home Protected While Away with These 6 Easy Tips

Summer is in full swing and many of us are taking those last minute vacations before the kids go back to school. Leaving your home can be worrisome, as there are many things that could go wrong while your away, We want to help relieve you of that stress, so we compiled 6 tips that will make you feel comfortable leaving your home:

Have someone look after the house. Have a family member or a friend stop by a few times while you're away. You could also have them water your plants and make sure everything is in working order.

Be careful about announcing your trip on social media. It's best to share your plans privately and wait to upload pictures until after you've returned.

Don't leave the lights on. It is a dead giveaway that your home is vacant when the same light is on every night at 3 am. Invest in timers or simply leave the lights off.

Stop your mail. Another dead giveaway is an overflowing mailbox. Call the post office and have them hold your mail until you return.

Unplug your electronic devices. This will help prevent accidental fires and will even save you a few bucks on your power bill.

Put your hidden key away. If you have a hideaway key, it's best to give it to someone you trust or lock it in the house while you're away.

Following these tips will help you rest assured that your home is safe while you are away. We hope you have a safe and enjoyable trip!

As always, if you are interested in buying or selling a home in the St. Cloud area, give us a call or shoot us an email. We're always available to chat.

Success is Easy to Recognize, You Just Need to Know What to Look for

With so many real estate agents out there, how can you know which ones to trust? What are the true marks of success?

The first thing you should know is that the real estate industry is very easy to get into - to get licensed, it's as simple as taking a few classes and passing a few tests. But a license only tells you the rules and how to follow them, not how to do the business and what it takes to be a successful agent. For instance, there is a 95% turnover every 5 years. The average agent only lasts around 6-18 months and sells only 2-4 homes. As you can see, most agents lack the experience necessary to give you the best possible assistance when buying or selling a home.

In our 39 years in the business, we have sold well over 3,000 homes. We're honored to have loyal customers that either work with us again, or refer us to their friends and family. Our experience has allowed us to single out 3 qualities that effective agents exhibit:

Training: Changes in technology, as well as with style and technique, make training crucial. We've been involved in training for 23 years, and talk with a business coach weekly. We also network with the top agents from around the country to stay up-to-date with what's happening in the market, using current techniques, and making sure we're providing quality service and knowledge for you.
Consistency: Many people get into the business to be their own boss, to do whatever they want. These are typically the kind of people who don't last long. Because real estate is a sales business, a successful agent is one who is diligent, attentive, and innovative.
Past Customer Support: Effective agents have returning customers or past customers who refer them to family and friends. In short, good agents build a relationship with those they work with - they ensure the transaction is mutually beneficial.

Many people don't realized that 70-75% of each year's business is generated by past clients. For example, we are honored to have worked with as many as 15 members of the same family. We have the kind of expertise money can't buy, and are humbled by our past customers for supporting us so graciously. If you want to join our family, or have any questions about the St. Cloud real estate market, give us a call or shoot us an email. We'd love to chat with you.

Things are Heating Up in St. Cloud!

It's summer time here in St. Cloud and the weather is heating up. Everyone is enjoying their time out on the lake and the beautiful weather has coincidentally been occurring at the same time that we are having wonderful mortgage rates in our area.

We just received the most recent Kiplinger news update and their projection for interest rates are in. They predict that they are going to be rising very soon. They expect long term mortgage rates to rise as high as 5.5% by early next spring!

The exciting news right now is that mortgage rates are currently right around 4 or 4.25% which means low payments for you, it's easy to qualify, and you'll save a tremendous amount of money over the next 10-20 years if you finance soon.

If you have any questions about the Kiplinger update or any questions about the St Cloud real estate market in general, please feel free to give me a call.

St. Cloud Real Estate Market Update Summer 2014

I have been getting a lot of questions lately about new homes. Specifically, people want to know when the right time to move into a new home is. To give you the short answer: now is the time to upgrade into a larger, nicer home.

I'm not just telling you this as a matter of opinion, but after having done research and having had experience in this current market. If you are worried about not being able to sell your home, I can tell you that most mid priced homes in St Cloud are selling in the 2-8 week range, and the probability of you selling your home is extremely high. A well-priced home in the St Cloud market can even fetch multiple offers.

Another reason to move up to a nicer home right now is continually low interest rates. Nicer homes are appreciating more and more each year and now would be a great time to take advantage of these rates with a newer, nicer home. We have a vast selection of different kinds of aesthetically pleasing properties. We have properties from the lake shore to the country fields, and everything in between.

If you are looking to make a move up and take advantage of all the benefits of a nicer home, we would love for you to give us a call. We can set you up immediately with an e-mail update on all of the new listings in the St Cloud market. It's going to be an exciting year in St Cloud!

Now is the Time to Buy in St. Cloud

5 Reasons to Buy a Home Now

The spring market continues to move along very strongly and I have come up with 5 different reasons why now is a great time to buy real estate in St. Cloud.

Less Competition: You're going to have a lot less competition as a buyer right now than you will have in a year or two years. A lot of buyers are getting back into the market, but some of them are hesitant because they are unsure if this is a true recovery. You can avoid waging a bidding war with other buyers if you buy a home now.

Price Increases: Today we have prices that are still at a 30-year low. After dropping nearly 30% in the last 8 years, home prices are finally on the rise again. Now is your chance to lock in these low prices and ride up the increasing home prices.

Home Ownership Builds Equity: Home prices are starting to rise and existing homes are much cheaper to buy than new construction. As new construction becomes more common in St. Cloud, it will bring up the price of other homes. This will allow you to build equity quicker and faster than you have in quite some time.

Interest Rates: Interest rates remain very low at 4.5-4.75%. If you want to lock in the low interest rates and the ensuing low payments, then now is the time to buy.

Shorter Repayment on Your Mortgage: This is an alternative way to build up a substantially larger amount of equity on your mortgage.

Hopefully you have found this information to be helpful. I just wanted to let you know that you could save hundreds of thousands of dollars by choosing to buy now.

If you would like to know more about real estate in St. Paul or if you would like to arrange a time to discuss your particular goals, then please do not hesitate to contact me via phone or email.

As an Active Agent, I will Market Your Home Aggressively for a Quick Sale

There are many great St. Cloud area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (320) 240-3363 for a FREE home buying or selling consultation to answer any of your real estate questions.

Before I get started I would just like to let you know how excited I am about the real estate market here in St. Cloud. We are off to a phenomenal start, and this is the first time I've been able to say this in a few years.

Now, a question a lot of people have been asking is what type of agent they should hire for a real estate transaction.

There are two kinds of agents that you should know about in today's market.

Passive Agents: When marketing your home these people will put an ad on the internet, in the newspaper, and also plant a sign in your yard. They might also do an open house, but they're really just sitting and praying that someone buys a home from then.

The other, much better alternative is an active agent. An active agent will showcase your home on hundreds of websites, call his contacts, and go out into the field to find a buyer. This agent will seek out newlyweds and first time buyers that are eager to purchase a home. The active agent will do everything in his/her power to get your home sold.

When you're looking for an active agent, look no further than myself. I will help you get the very best price for your St. Cloud property and I also promise that the sale will be as quick and hassle free as possible.

If you're interested in working with an agent that has your best interests in mind and that will work tirelessly to satisfy you, then please contact me via phone or email today. Consider me your #1 resource for St. Cloud real estate.

How to Market Your Home in 2014

How to Effectively Market Your Home in 2014

A lot has changed in the St. Cloud real estate market and in the global market as well. In order to keep you updated with changing trends and technology, I will be informing you on the best ways to market your home for sale and also giving you an idea of what an open house now looks like.

Marketing:

An astounding 97% of buyers are now using the Internet to search for homes before they contact a Realtor or before they actually go and see these properties in person.

Because of the heavy use of the Internet, you will need top-notch, professional photography. You need to capture all of the spectacular features that your home has. These photos need to be as good as possible, because when people look online you may only have one chance to impress them. Good photography can work wonders for selling a home quickly & for top dollar.

The purpose of marketing and photographing your home is to create excitement and pique the interest of the buyers. When the buyer finally comes to view the property, you want them to get the feeling like they have gotten much more than they were expecting. You want to impress the buyer with more features and benefits than they ever expected.

If you're in St. Cloud and you're looking to sell, please contact me because I have some great stagers that can help you set up your home and give you the professional advice you need to get your home sold.

If you have any other questions regarding real estate in St. Cloud, please don't hesitate to contact me.

My Expert Advice for Sellers in St. Cloud

St. Cloud Real Estate - Tips for Sellers

I would like to let you know that our market here in St. Cloud is starting off very strongly, and we expect it to pick up as spring and summer approach. I'm going to start off by addressing some questions that I've been receiving from clients.

Listing Price vs Selling Price

Pricing a home is a very touchy thing, and you have to know how the market is functioning in order to determine a good listing price, which is what the seller initially asks for the home. The selling price is what the home actually sells for.

When we look at the market and trying to price homes, we look very closely at three different things:

How many homes have sold and closed? This will help determine what you can list your home at. You want an attractive sale price, and one that will also match closely with the value that an appraiser gives it. If your value does not match the appraiser's, you're going to be in trouble, so price your home carefully.
What is selling right away today? This will help determine your price, so you want to look at comparable properties and what they are selling for, as well as how fast they are selling.
What are you competing with? You need to know what sort of competition you will be facing in order to price and market your property correctly.

Currently, homes in St. Cloud are selling in 2-8 weeks. Some are staying on the market longer because they may be priced 5-10% too high, and they probably have some repairs that should be made.

So, once we bring your home on the market, we are going to be paying attention to what is happening in the market and how it is going to impact the sale of your home. We pay attention to new listings, sale prices, and inventory so that we can monitor your sale and get you top dollar for your home.

When you get a purchase agreement on your home, we will present it to you and make sure the home closes smoothly and that the agreement will benefit you as the seller. I have closed over 3,000 transactions, so I know how to make this process as painless as possible.

If you're looking to sell your home in the St. Cloud area, please contact us and we would be more than willing to help price, list and market your home so that you can get top dollar.

Valuable Information about Closing Your Property in a Sale

I just wanted to take the time to answer some questions about what occurs during the closing of a property. Lots of clients have been asking me about this lately, and I wanted to take the time to address these issues.

How long does it take to close a property?
A very quick closing in the St. Cloud market would be in about 4 weeks. A more average length of time to close a home in our area is anywhere from 45-60 days. At this time of year with a more sluggish market, it isn't uncommon to have a closing date anywhere from 90 to maybe 120 days out. However, homes are selling pretty well right now in St. Cloud, so I would be inclined to say that it would take about 45 days to close a home.

Another question that keeps popping up is: Who sets the closing date?
The closing date is actually negotiable between the buyer and the seller, but ultimately you have to check in with the buyer's lender to see when the closing date will actually occur. Usually it will be within 45 days, but you should probably know this beforehand.

When does everybody move?
Typically, the seller will be moving out of the home and leaving it vacant on the day of the closing. Of course, this can be negotiated, but most often this is what occurs. Buyers rarely move in before the closing date, but it sometimes happens. If you're moving out of an apartment and into a home, we will typically schedule the closing day for sometime during the middle of the month where you can then have a full two weeks to move into your house and out of your apartment. The negotiation in the sale of the home usually works to make the move in and out of the home as stress-free as possible for both parties involved.

I hope these questions and answers have been helpful to you, and if you need any further assistance with St. Cloud real estate, please do not hesitate to call me at (320) 240-3363 or email me at Hauck@saintcloudrealestate.com

Size Up the Competition to Sell Effectively

Lately I have been fielding a very common question. Everyone wants to know how to determine the amount of competition they will face when putting their home on the market. The answer is never simple, but I can clear it up for you in a few different ways.

You must first determine the top dollar for your home without overpricing your property. You want to avoid overpricing because this can help the competition sell their homes when buyers see that they are priced correctly and in accordance with their real values.
Support the value of your home with comparable sales. This requires preparation, but it can prevent an unpleasant surprise when an appraiser comes to look at your home.
How does your home compare to others in the market? You need to know what features your home offers compared to others in your local market because buyers will see around 8-10 different properties before making a decision.

Some exciting news about homes in the St. Cloud market is that we're currently experiencing an 8-year low in inventory, as there are only 989 properties for sale. This presents a wonderful opportunity if you are looking to sell, because the market will become saturated during the spring and summer. Competition will increase, and your property will be competing against many, many others.

Overall, we've had a very strong start to 2014. Sales are up, buyers are excited, and interest rates have actually plunged a little bit.

If you'd like to meet and discuss your property with me, call me at (320) 240-3363 or email at hauck@saintcloudrealestate.com

St. Cloud Real Estate - buy now while home prices and interest rates are so low!

There are many great St. Cloud area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (320) 240-3363 for a FREE home buying or selling consultation to answer any of your real estate questions.

I get the question all the time: How do you save money in this real estate market? Moreover, what's the best way to get the best value on the house you're buying? Today I'm here to answer these questions and give you the good news about the current real estate market.

First off, home prices have really bottomed out. Most likely, 6 months to a year from now the market will pick up more speed; the construction industry will start thriving and prices of building materials and labor will climb fast. Given this forecast, you can expect the average home price to rise soon, so the sooner you get out there and buy the better.

Secondly, interest rates are still at a rock-bottom percentage. We are averaging a 4.5% rate but forecasters expect that rate to increase a pull percentage in 2014. Sounds pretty minor right? Well, that one percent increase to 5.5% will mean you're paying roughly $125 extra a month for the same house. That's $1,500 a year, and a whooping $45,000 extra paid over the lifetime of a standard 30 year fixed mortgage rate.

If you're thinking of buying today, don't wait! Call me at (320) 240-3363 or email me at hauck@saintcloudrealestate.com. I hope to hear from you soon, have a great day!

What to expect from 2014

Welcome back to my video blog. The New Year is here and what a great year it's going to be. We finished 2013 with a whopping total of 220 pending sales. This number practically doubled from last year, so clearly 2013 was a great year for the real estate market. Looking ahead, the good times should keep on coming, and I expect a fast start in 2014.

You may not know, but the first quarter is one of our best quarters of the year. In fact, about 60-65% of our sales occur from Jan. 1st - Jun. 1st, and it's an especially good time for sellers.

If you are thinking about selling, now is the time; beat your competition. There are tons of qualified and motivated buyers out there and they don't have much of a selection. Homes have been on the market an average of 4-8 weeks, and this time period may shrink if the market starts rolling early in 2014.

If you have any questions about getting your home ready to sell, give me a call today. It's a great time to put your house on the market; don't let this opportunity pass you by! Thanks for watching!

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Why Hire Me?

When you are buying or selling property in today's real estate market, it's important to have confidence in your real estate professional. My commitment as your local REALTOR® is to provide you with the specialized real estate service you deserve.When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why my goal is to keep you informed on trends in the marketplace using the latest statistics in your local area.

With property values continuing to rise, real estate is a sound investment for now and for the future. As a local area expert with knowledge of the communities, my objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call or e-mail me.Thank you for visiting my website - please consider it as your online source for local real estate information, and return often for the latest property listing updates.

Chris Hauck
Coldwell Banker Burnet
2105 Troop Drive
Sartell, MN 56377
Cell: 320-240-3363
Fax: 320-240-3390
Hauck@SaintCloudRealEstate.com

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