I recently had a client call me and ask me about buying a home in BearPath which is associated with BearPath Country club and is a gated community in Eden Prairie Minnesota.  My client asked me about the difference between a normal Eden Prairie Home's value and a BearPath Country Club homes value.  I had watched homes selling in Bearpath for quite a while and based my opinion on past experience. Just off the top, it seemed that being in the Bearpath gated community that a home that would sell for 900,000 in Eden Prairie would sell for 1 million in the gated community sometimes more if staged and marketed correctly.  I also know that being in Bearpath normally makes the high end market i.e. over 1 million dollar homes sell better.  Feel free to visit my site with questions about BearPath... 10/12/2009

As a veteran in my 14th year of selling real estate I am getting asked this question more and more all the time these days. The answer is YES or NO.Here are the considerations:1. How much equity are you likely to lose from selling in a down market versus buying in a down market? You may lose $30-50K on your sale, but gain $70-100K in equity on your move up property, so it might be worth it to "take the hit" right now.2. How much is your current payment? If it is too high to get a break even, or a slight positive cash flow if you rented it out, you should refinance it, and then rent it out.3. Am I OK with a phone call or two to fix something if it breaks in my "rental house"? Or do I know someone handy that lives close by that doesn't charge an arm and a leg!  01/04/2009

Hello I am new to this blogging, so your patience is appreciated.Our company specializes in the sale and acquisition of hotel properties in the upper midwest.  Our niche is hotels bigger then the small road side "ma and pa" motels, but smaller then the massive 400 room Hiltons.  Everything in between we have for sale, or can help a serious and qualified buyer pursue through buyer representation.   If you are in the market to buy, email or call me! Ryan 04/28/2008

Eden Prairie continues to rise in spite of soft market condition elsewhere.  While the Metro area's average sales price drops, and in spite of neighboring communities doing the same, Eden Prairie posted a 12.1% rise in the average sales price for 2007.Average sales price can be a misleading statistic, but is usually gives us an idea for the over all strength of the market.  Average sale price does not accurately predict home value application due to many reasons.  For example, if an area's average sale price is $200,000 and a high number of new condos sell for around $125,000 it has an effect on the average sales price.  We see this often in real estate booms.  A bunch of new condos, or a new subdivision of homes, might bring the average up or down while actual home values are doing the... 02/19/2008

Twin City metro communities taking action against the high rate of foreclosure.   Eden Prairie MN appears to be proactive in the attempts to keep homeowners in their homes.  Eden Prairie Housing and Community Service Dept has been diligently networking with the US Department of Housing and Urban Development (HUD)  to make loans less than $10,000 per household where appropriate when home owners are struggling to stay in their home.  The monies to fund  such a program is being proposed to come from the city's allotment of close to a quarter of a million under the federal Community Development block Grant Program.  To date, HUD has implied the current rules aren't applicable. To assist such situations.  Will this change in the near future? Will it be beneficial for those distressed home ow... 02/12/2008

Understanding Different Types of Loans Today's homebuyer has more financing options than have ever been available before. From traditional mortgages to adjustable-rate and hybrid loans, there are financing packages designed to meet the needs of virtually anyone. While the different choices may seem overwhelming at first, the overall goal is really quite simple: you want to find a loan that fits both your current financial situation and your future plans. Though this article discusses some of the more common loan types, you should spend time talking with different lenders before deciding on the right loan for your situation. General categories of loansMost loans fall into three major categories: fixed-rate, adjustable-rate, and hybrid loans that combine features of both. Fixed-rate mortg... 12/14/2007

Refinancing Refinancing your home can be an excellent way to bring down your monthly mortgage payment, raise cash, or consolidate debts with high interest rates. However, you need to do your homework before deciding to refinance. One important factor is the difference between current interest rates and the rate of your original loan. You also need to take into account the amount of time it will take to recoup the costs of refinancing. When should you refinance?Some common reasons homeowners refinance include: Lower monthly mortgage payments Convert an adjustable rate mortgage (ARM) to a fixed-rate mortgage Raise funds for family expenses (i.e. college tuition) Pay off high-interest loans Home improvements The old rule of thumb is that you should refinance your home if interest rates fal... 12/14/2007

Closing Costs The bundle of fees associated with the buying or selling of a home are called closing costs. Certain fees are automatically assigned to either the buyer or the seller; other costs are either negotiable or dictated by local custom. Buyer closing costsWhen a buyer applies for a loan, lenders are required to provide them with a good-faith estimate of their closing costs. The fees vary according to several factors, including the type of loan they applied for and the terms of the purchase agreement. Likewise, some of the closing costs, especially those associated with the loan application, are actually paid in advance. Some typical buyer closing costs include: The down payment Loan fees (points, application fee, credit report) Prepaid interest Inspection fees Appraisal Mortgage... 12/14/2007

15-Year, 30-Year, or a Biweekly Mortgage? In the past, the 30-year, fixed-rate mortgage was the standard choice for most homebuyers. Today, however, lenders offer a wide array of loan types in varying lengths--including 15, 20, 30 and even 40-year mortgages. Deciding what length is best for you should be based on several factors including: your purchasing power, your anticipated future income and how disciplined you want to be about paying off the mortgage. What are the benefits of a shorter loan term?Some homeowners choose fixed-rate loans that are less than 30 years in order to save money by paying less interest over the life of the loan. For example, a $100,000 loan at 8 percent interest comes with a monthly payment of around $734 (excluding taxes and homeowner's insurance). Over 30 ... 12/14/2007

Saving for the Down Payment Saving funds for a down payment should be part of an overall program to get your finances in order prior to shopping for a home. This includes rounding up financial records, examining your spending habits, and setting a budget you can live with. Remember, too, that the down payment is not the only up-front expense. An allowance for closing costs should also be included in your savings budget. How much is required?The down payment is usually expressed as a percentage of the overall purchase price of the home, and varies depending on the lender, the type of financing and amount of money being lent. In the past, the typical down payment was 20%, but in recent years lenders have been willing to offer conventional financing with as little as 3% down. U.S. Governme... 12/14/2007

Leveraging Your Money One of the greatest financial aspects of buying a home is the ability to leverage your money. Simply put, leverage allows you to use a small down payment and financing to purchase a larger investment. For example, if you bought a $125,000 home with 10 percent down, you leveraged the $12,500 down payment to purchase an asset worth 10 times that amount! AppreciationThe benefits of leverage really become apparent with appreciation, or the rise in value of a property. Using the above example, say you were to live in the house for 5 years, and during that time property values in your area were to rise an average of 2.5 percent a year. Your home would then be worth over $141,000. By putting only 10 percent down, you get to enjoy the appreciation for the full amount! Payi... 12/14/2007

How Mortgage Loans Work Excluding property taxes and insurance, a traditional fixed-rate mortgage payment consist of two parts: (1) interest on the loan and (2) payment towards the principal, or unpaid balance of the loan. Many people are surprised to learn, however, that the amount you pay towards interest and principal varies dramatically over time. This is because mortgage loans work in such a way that the early payments are primarily in interest, and the later payments are primarily towards the principal. In the beginning... you pay interestTo help calculate monthly payments for loans based on different interest rates, lenders long ago developed what are known as "amortization tables." These tables also make it fairly easy to calculate how much money of each payment is interest, and... 12/14/2007

When Should You Pay Points on a Loan? When it comes to comparing interest rates for a mortgage loan, homebuyers often have the option of choosing a loan with a lower interest rate by paying points. Simply put, a point is equal to 1 percent of the loan amount. For example, with a $100,000 loan, one point equals $1,000. Points are usually paid out-of-pocket by the buyer at closing. Paying points may seem attractive, because a lower interest rate means smaller monthly payments. But is paying points always a good idea? The answer generally depends on how long you plan to stay in the house. Let's look at an example: Bob and Betty Smith are shopping for loan rates on a $150,000 home. Their bank has offered them a 30 year loan at 7.5 percent with no points. This works out to a monthly payment ... 12/14/2007

All About Adjustable-Rate Mortgages Adjustable-rate mortgages (ARMs) differ from fixed-rate mortgages in that the interest rate and monthly payment can change over the life of the loan. ARMs also generally have lower introductory interest rates vs. fixed-rate mortgages. Before deciding on an ARM, key factors to consider include how long you plan to own the property, and how frequently your monthly payment may change. Why choose an adjustable-rate mortgage?The low initial interest rates offered by ARMs make them attractive during periods when interest rates are high, or when homeowners only plan to stay in their home for a relatively short period. Similarly, homebuyers may find it easier to qualify for an ARM than a traditional loan. However, ARMs are not for everyone. If you plan to sta... 12/14/2007

How Much Can You Afford? Understanding how much you can afford is one of the most important rules of home buying. Depending on your individual situation, your budget can affect everything from the neighborhoods where you look, to the size of the house, and even what type of financing you choose. Bear in mind, however, that lenders will look at more than just your income to determine the size of the loan. Likewise, you may find that there are some creative financing options that can help boost your purchasing power. Loan prequalification vs. preapprovalOne of the best ways to determine your budget is to have your real estate agent or lender prequalify you for a loan. Prequalification is different from preapproval, because it is only an estimate of what you'll be able to afford. On the ot... 12/14/2007

#10 Be cautious with fixer uppers Some people may be inclined towards purchasing a home that needs some work. This could be a challenge and an opportunity to make money. Sometimes, a fixer-upper can be purchased below market value, and sufficient repairs made to bring it to a good sale condition with a profit realized. However not all fixer uppers will bring in the profits you might expect. It depends upon the price of the home, the amount of repairs needed and the market conditions at the time of sale. If the home is not priced low enough, you may not recover your investment of time, trouble and money. Before you purchase what looks like a quick way to profit, carefully consider the condition of the home and ALL the repairs that need to be made. Get several estimates. Complete a compr... 09/14/2007

#9 Hiring a home inspector is a wise investment A home inspection is an inexpensive way to gain peace of mind, and guard your pocket book. A proper inspection will cover all areas of the house including foundation, electrical, heating, plumbing, floors, walls, ceilings, attic, roof, siding and trim, porches, patios, decks, garage and drainage. A professional inspector can give you an objective view of the property, with a written report, indicating the present condition and items that will need repair. 09/14/2007

#8 Pay attention to “red flags” When evaluating a home, be sure you know the difference between acceptable and unacceptable problems. Cosmetic items like peeling paint, worn carpeting, unattractive wallpaper can be easily remedied. You could use these as negotiating items, as there will be costs involved in updating the home. Major problems, however, are clearly “red flags.” Look for items such as major foundation cracks, water damage, outdated electrical systems, and inadequate plumbing. These items could cost you dearly in the future. 09/14/2007

#7 Check your emotions, and shop with your head When people purchase a home on emotion, without an objective view of the property, problems may develop later. Shopping for a home is an emotional process. It could be costly. Using your head, along with asking for an objective opinion (from your Realtor) could help you avoid costly errors. 09/14/2007

#6 Use your Realtors’ knowledge of the community Your Realtor is trained in all aspects of Real Estate, including understanding supply and demand, economics and the neighborhoods of the city in which they practice. As they regularly view homes as they are placed on the market, they are at the heartbeat of knowledge and information about housing trends and prices. They can save you time and money, by narrowing your prospects to only those that meet your requirements. It is a very time consuming process to view every home available that meets your needs. A professional Realtor can do much of the work for you, by reviewing your needs, reviewing the properties and then hopefully, advising you of a potential match. A comprehensive knowledge of the available homes in your neighborhood is one ... 09/14/2007