The annual Fall Parade of Homes runs from September 6^th through the 28th, with 392 new homes open Thursdays through Sundays from noon to 6:00 pm. You can pick up a comprehensive guidebook that provides complete information about the tour, including maps and photos or illustrations of all the homes at area Holiday Station stores.

Outdoor Living is the focus this year. For something fun, the KARE 11 Backyard, Parade Entry #11, will be open limited hours during the tour: every Saturday (September 13, 20 and 27) from noon to 4pm.

The tour will once again feature the Green Path Energy Tour, sponsored by Xcel Energy. Almost half (190) of the Parade Homes have been tested by an independent energy rater to earn a HERS (Home Energy Rating Score) and has its own Home Performance Report (HPR) that graphically explains the home’s HERS score. The HPR allows homebuyers to compare the expected energy use between homes.

All the homes are free to tour with the exception of four Dream Homes that each request a $5.00 donation to the BATC Foundation to enter. The four homes are #240 by Sustainable 9 Design + Build in Minneapolis (priced at $1,349,000); #243 by Stonewood LLC in Edina (priced at $2,450,000); #366 by Lecy Bros. Homes and Remodeling in Wayzata (priced at $2,375,000); and #367 by BohLand Homes, also in Wayzata and priced at $1,544,000.

The lowest priced home is #117, at $153,900. The two-bedroom split entry single family home is located in Isanti. The most expensive home, #243, located in Edina priced at $2,450,000. There are a total of 43 homes priced over $1,000,000 and 45 priced under $300,000. The total value of all homes on the tour is $228,336,701. The homes are located throughout the Twin Cities with Lakeville hosting 24!

1948 New Home

What is the median age of a home built in the America? Good question… would you believe it is 40! In 1974, when those houses were built, the interest rate on a 30-year fixed mortgage was 9.1%; the median existing home price was $32,000; President Gerald Ford announced a $300 million mortgage credit initiative to help alleviate the housing market recession; and the energy crisis had spurred the incorporation of energy-efficient features in new construction.

What does the U.S. housing stock by age look like?

• 14% or 18 million homes were built from 1980 to 1999 (0-14 years old).
• 55% or 40 million homes were built from 1960 to 1979 (15-54 years old)
• 31% of homes are 55-95+ years old. We can break that down further to: 21 million (16%) were built from 1940 to 1950 (55-74 years old); 11 million (8%) were built from 1920 to 1939 (75-94 years old) and 9 million (7%) were built in 1919 or earlier.

Source: U.S. Census Bureau’s 2011 Housing Profile, published July 2013.

Senior housing cooperatives are an increasing popular housing option for active adults 55+. As the baby boom generation reaches retirement age and considers the many lifestyle choices available, the cooperative model is gaining greater popularity.

Cooperative living is simply ownership in a facility. Members become owners when they buy a share in the property and are then entitled to occupy a specific unit and cast one vote in all cooperative matters.

Each month members pay an amount that covers their share of the operating expenses of their cooperative corporation. As a result, there are no major financial surprises.

There are two primary costs involved in a cooperative:

• The Share Price is a one-time payment that purchases a share in the co-op. Your share entitles you to occupy a home within the co-op. It accumulates equity and is generally more affordable than buying real estate and still has the tax advantages.
• Members also pay a monthly carrying charge which generally includes: the mortgage payment, real estate taxes, operating expenses, lender required reserves, interior and exterior maintenance, sewer, water, trash/recycling, TV/cable and heat. This list varies by each individual cooperative. Members help set these budgets and the entire co-op operates as a not-for-profit.

Senior housing cooperatives are designed to be affordable, to provide peace of mind, to protect members’ investment, and is easy living. No more mowing and no more snow removal. Plumbing hassles or leaking roofs are handled by the cooperative not you.

Want to head to a warmer climate during the winter? No problem. Pack your bags and go. You are free to enjoy your life and do the things you like to do.

Summer is here and a new crop of buyers are shopping for a new home—Are you one of them? If so, you want to be well prepared to get that home you have always wanted.

Mortgage Matters

“Pre-qualified” sure sounds good, but in fact, it doesn’t ensure that homeowners or realtors will consider your offer.  Getting “pre-approved” for a bank loan will signal to an informed seller that your offer is within your means and should be given serious consideration which can tip things in your favor in a tight housing market. Pre-approval is more difficult now than in the past, so, beginning the process early allows you to be prepared to make an offer that will be considered seriously when you find your dream property.

When signing mortgage papers, get any help needed to understand what you are agreeing to, including all of the terms, closing costs, and fees. Take the time to understand the difference between the various types of mortgages including fixed rates, adjustable rates and balloon payments as well as the benefits and costs of different loan terms such as 15 and 30 year mortgages. Also, be sure to explore if you qualify for discounts or credits based on income, being a first-time buyer, or a veteran.

Credit Counts

Higher credit scores garner lower mortgage rates and monthly payments. Financial experts recommend reviewing your credit report to identify and remedy any erroneous entries prior to making major purchases to ensure you attain the highest credit score possible. In addition, since applying for credit can lower your credit score, prospective home buyers should avoid applying for additional credit during the year prior to buying (and through closing) your new property. Credit scores of 750 and above often get the best rates, and while you can get a mortgage loan with scores below 650, you will generally have higher costs. A little planning and preparation can reap significant financial rewards.

Know Your Budget

A safe “rule of thumb” for mortgage payments is that it should not exceed 28% of your gross monthly income. This ensures you have enough discretionary income available for upkeep, maintenance, and insurance. Buying within your means will also help in the event of any unforeseen circumstances. While plenty of lending institutions are willing to give you a higher mortgage, be mindful of all the costs of owning your home, your other financial commitments as well as the cost of pursuing your hobbies and interests.

Online calculators can help you estimate monthly payments on homes you are considering, and you can see how those payments compare to your current payments. If you plan on buying a home with larger payments than you pay now, think about putting the difference into a savings account each month to confirm the higher payments are realistic. An added benefit is these funds will be available to apply toward a down-payment or closing fees when you are ready to purchase your new property.

Location, Location, Location

Decide where you want to live, both in terms of general areas and specific geographic requirements. This is as important as the actual house you buy, it will affect your commute, schools, your neighbors, and where you shop and do business. This preparation might be more difficult if you come from further away, however, a real estate agent who gets to know you will help steer you in the right direction. Some locations have specific issues – parking, grounds fees, or other specifics that come with living in a certain locale and a realtor that knows your desires will be able to evaluate any issues accordingly when searching for properties.

You can build your knowledge of an area by reading the local newspaper, visiting local stores and schools, dining at local restaurants, and shopping at a local supermarket.

Timing Things

When do you want to move? Often, buying a home is a game of hurry up and wait — except when it’s not. Sometimes buyers or sellers want to move quickly, and want expedite the process. Be up front with your moving schedule, and willingness/ability to be flexible. While you may or may not be able to impact the schedule, the more prepared you are with the logistics of the sale; the better off you will be in the long run. Paperwork takes time, and depends on how fast the bank and other institutions move, and how much additional information is needed. Following up with lenders, escrow officers, and your agent can be critical to ensure that documents move through the system in a timely fashion.

Timing affects moves in multiple ways, from the moving of possessions, to completing repairs, to enrolling in schools. Moving on the fly can cost more than those with a little planning. Establish a timeline. If you plan in advance for the home purchase and for the actual move, you gain time to shop around for the best deals on everything from mortgages to moving vans. Additionally, advanced planning and research enables you to move faster on things if you need to move up closing dates or shift schedules for any reason.

Terms of Endearment

Are the terms that you agree to going to work for you? Negotiate terms you can love as you finalize the sale/purchase of a home. While everything might not be exactly what you want, know the terms you are agreeing to. If you compromise in one area, you might be able to use that compromise to get something in another area.

For example, if the owner needs extra time in the home after closing, and you don’t have to move right away, you can agree to a rental agreement so that they can stay a bit longer while you are orchestrating your own move. In exchange, you might let them know that you will be having some repairs made while they are renting and before you move in. This can all be spelled out in the terms of sale.

How Handy are You?

Biting off more than you can chew with a fixer-upper can come back to haunt you in the end. Properties that require extensive work might also require more time and money for the move, and any building permits you might need to get. Purchasing a home in good repair or one in which the seller has recently replaced the roof, carpets, and flooring may come with a higher price, but it might still be worth it if you don’t intend to make those repairs yourself.

On the other hand, if you want your home to be your new project, come prepared with what it will take accomplish various tasks in your new area. Doing some things in climates that differ from your own might surprise you — projects that include roofing, heating and cooling can differ substantially between regions.

Permissions

If you purchase a home with remodeling in mind, take a cursory look into permits before assuming that you can do what you want to. The permitting issues of communities and towns, time-frames around getting those permits and inspections, and costs involved, can all vary.  Be certain that the permissions needed for the desired improvements are within your budget and schedule, on top of the cost of materials and labor. There might also be special restrictions if this is in an apartment or community.

It isn’t every day that you shop for a home, but when we do, its best to do it with us much knowledge and preparation as possible. Doing your homework can be daunting and challenging, but on that closing date, you’ll be glad you followed through and got the best home you could get.