St. Cloud Real Estate Podcast with Chris Hauck

Here’s what you need to know about computer-generated pricing and why you simply can’t beat having boots on the ground. We’ll typically do three to six market valuations per week, helping people with pricing by looking at past sales and current listings. Our computer pulls up estimates from Zillow and a few other services on every single property we look at. Not only can we see what a particular property was listed and ultimately sold for, but it also shows us what Zillow estimated the value to be. “Zillow’s algorithm has no clue whether you have brand-new granite countertops, or if your feet stick to the carpet.” Zillow is a company well-equipped to handle very big data; if you take 10,000 houses and their computer crunches the numbers, their average price will be right on the money. However, their computer doesn’t know a specific house’s value accurately.  Zillow’s algorithm has no clue whether you have brand-new granite countertops, or if your feet stick to the carpet. This leads to a rather large variation—the estimate is 15% to 20% above or below market value.  In essence, computer-generated pricing, like the model made popular by Zillow, gives you a sort of dartboard pricing from which to work. It’s a start, but it’s simply not as accurate as a real estate agent who’s going through 50 to 60 properties a week and can truly understand the value of your property—updates, remodels, condition, etc.  If you have any questions about this or any other topic, please don’t hesitate to reach out. We’d love to hear from you.

The coronavirus has wrapped the globe in uncertainty, but the real estate business is continuing despite the fact. Here’s what you need to know. Even amidst uncertainty with the coronavirus pandemic taking over our daily lives, the real estate market is still providing opportunities to people out there. There were 1,734 pending sales in the last seven days that were driven by opportunity buyers taking advantage of low interest rates. If you are taking time to pause your real estate tasks, we absolutely respect that. However, if you are looking to buy or sell a home, we are taking steps to ensure that the process remains safe and professional. If you have any questions, feel free to reach out to us by phone or email.

We have been getting a lot of questions about virtual tours. Here’s my opinion on them. A lot of people want to know whether virtual tours are as effective as open houses. I’m here to answer that question today. Over the years, even before the internet existed, open houses typically generated anywhere from 2% to 3% of sales. It’s not the ideal way to sell, but it was a great way to expose a property to the market. Many times, there are people out looking casually, or out for decorating ideas instead of an actual home to buy. With the advent of the internet, we’ve gained tools to improve this process. Virtual tours allow people to “walk through” the house online. Instead of having an open house for a few hours on a Sunday, these virtual tours can be accessed any time at any place. “Virtual tours allow buyers to walk through a home 24/7.” Virtual tours do two things for sellers: 1. They give us a chance to present the house in its best light. 2. They help us eliminate buyers who aren’t a good fit for the property. If you’d like to learn more information about open houses or virtual tours and how we use them, don’t hesitate to reach out and give us a call or send an email. We look forward to hearing from you soon.

What’s changed and what’s stayed the same in the real estate industry over the years? Here are a couple of examples. My team and I recently attended a Mike Ferry conference with 4,000 of the other top agents in the country. None of us compete head to head, so this conference is a wonderful opportunity to share ideas, techniques, etc. One of the more interesting topics that came up during this conference was how much things have changed in real estate, but at the same time, stayed the same.  Some of the advertising, for example, is the same, and person-to-person interaction is still extremely important. Our job is to help you make the right decision and get the information you need so your home sale and/or home purchase goes smoothly. “The bottom line is, we’re here to help you do the right thing for your family.” One of the things that has changed is the delivery of information, which is wonderful. We can get you far more information about homes much more quickly, and you can see a lot more about the properties you want to look at. Years ago, for about half of the homes we walked into, buyers only needed about two steps to know that the home wasn’t right for them. With virtual tours now available, buyers can weed out the homes that don’t fit and focus on the ones they like best.  The bottom line is, we’re here to help you do the right thing for your family. If you have any specific real estate needs, don’t hesitate to reach out to me. I’d love to speak with you.

How do we keep up to date in the real estate market? Today I’m discussing the yearly conference I attend to do just that. One question that has come up a lot lately is how I stay up to date on what’s happening in the market. We’re continually exploring ways to keep improving, changing, and updating with new trends and technology.  Next week I’ll be in San Diego for three days for a conference with a business coach I’ve worked with for 32 years. In that meeting there will be approximately 2,500 real estate agents from all over the U.S. Everyone is sharp, they do a wonderful job, and none of us are direct competitors. When we get together to talk, everyone’s willing to share almost everything they do with each other. We compare notes and best practices. “How do I keep up to date? By attending a yearly conference with other agents focused on breaking down new trends and technology.” This year, we’ll be discussing the new uses of video tours, growing photography practices, response systems, customer service, and a variety of other great topics. We talk about old technology (direct contact with you) and new technology, which streamlines the process. This yearly meeting is very exciting, and it allows us to continue improving the services we provide you.  If you have any questions concerning real estate, please reach out to us via phone or email. We would love to help you.

I’m bringing your 2020 real estate market update, which should benefit both buyers and sellers. Happy New Year! We are starting out with what looks like a great year in the real estate market. We currently have close to record low interest rates and a relatively low inventory of homes for sale.  From a seller’s perspective, you’ll be able to get an excellent price and a good negotiating position. Sales should be relatively short and houses should sell a bit quicker, at least in the early part of the year. Last year, we started with about 698 homes on the market. This year, we have 504 homes, so it’s a wonderful year to be a seller. If you’re looking to sell, it is not too early to start the process.  The spring market generally begins January 2, though many sellers don’t believe anything sells until March or April. The exciting news is that buyers are in the market already. Beat the March rush!  “If you’re looking to sell, it is not too early to start the process.” From the buyer’s perspective, this year’s rates are lower than last January. If you were buying a $300,000 house last year, you could buy a $360,000 house this year with the same payment! If you’re thinking about making a move, it’s an exceptional year to do so. Interest rates are excellent.  If you have further questions about our current market, please reach out to me by phone or email. I look forward to speaking with you soon.

The holidays can be a great time to buy or sell a home. Here’s why. Are the holidays a good time for you to buy or sell a home? Actually, they are, and for a few different reasons. If you’re looking to purchase a property, you’ll have less competition from other buyers. That also means that you’ll see fewer multiple-offer situations on homes. Further, interest rates are outstandingly low right now, lenders are more readily available than in other seasons of the year, and title companies have more time to dedicate to your transaction. All in all, home purchases this time of year tend to be less hectic than they will once the spring market begins in March, April, and May. If you’re thinking of selling a property, there’s a prime reason that the holidays are a good time to list. Many buyers who view properties in the spring market are looking for homes, but not seriously. On the other hand, buyers in the wintertime tend to be people who are really focused on buying a property and moving into it as soon as possible. Additionally, the holidays are a great time to capitalize on the warmth and emotion of having a home; there’s nothing like seeing a beautiful home decorated for the holidays. “All in all, it’s a good time to both buy and sell.” If you’re thinking about selling after the holidays, it’s worth noting that, for some reason, a lot of sellers don’t believe that anything will sell on the market until about April. That means that we’ll have the lowest inventory of the year until early March. You may get fewer showings, but the showings you get will be high quality. All in all, it’s a good time to both buy and sell. We have a decent selection of properties on the market, great interest rates, and if you need to take the house off the market for a day or two to enjoy a family get-together, that’s certainly acceptable over the holidays. If you have any questions about buying or selling a home, reach out to us. We’d love to help you. Until then, have a wonderful holiday season!

What are you thankful for this Thanksgiving? At Coldwell Banker Burnett, we’re thankful for you. Thanksgiving is upon us, which means now is the perfect time to reflect and give thanks—and I and all of my team members at Coldwell Banker Burnett have a lot to be grateful for. We’re thankful for this year’s success, our families, and, of course, we’re extremely thankful for all of you. Many of you have been loyal to us for a long time, including one particular family who recently referred their 34th relative to our team for help with their real estate goals. This kind of continued support is exactly why my team and I do what we do. It has been a privilege serving each one of you. We wouldn’t be where we are today without you. With that said, we hope you all have a very happy Thanksgiving and an incredible holiday season. If you have any questions or would like more information about any particular real estate topic, feel free to give us a call or send us an email. We look forward to hearing from you soon.

The year is nearly over, but the St. Cloud market remains strong. We’re still seeing quite a few sales for this time of year. As we head toward the end of the year, things are going really well in the St. Cloud real estate market. Interest rates are near record lows, sales are strong, and inventory is steady. We currently have about 725 homes on the market with 265 sales pending. Those are very good numbers for this time of year. It’s still time to buy a home for the holidays, and it’s a great time to start getting your home ready for sale because the spring market starts on January 2. If you have any other real estate questions, don’t hesitate to reach out to me. I look forward to hearing from you.

Interest rates are falling, which means now is a great time to buy. Falling interest rates is a trend that sounds wonderful, but what does this really mean for you? Does it make that big of a difference if you’re a homebuyer? Actually, yes.  Interest rates are under 4% right now. Back in January of this year, they were hovering between 4.5% to 4.75%. This means you can currently buy a house worth $360,000 to $370,000 for the same exact mortgage payment that would’ve only gotten you a $300,000 house back in January. “It’s a great time to buy, and we have a great selection of homes in our market that I’d love to show you.” Alternatively, if you were thinking of buying in the $250,000 to $300,000 price range back in January, your mortgage payment would be lower if you bought a house now in that same price range. You can also shorten your mortgage repayment period to 20 years and it wouldn’t make that much of a difference between what you would’ve paid in January.  In other words, it’s a great time to buy, and we have a great selection of homes in our market that I’d love to show you. If you’d like to start your home buying journey or you have any other real estate questions, don’t hesitate to reach out to me. I look forward to hearing from you.

It’s fall here in St. Cloud, but our real estate market remains hot. Here are the latest numbers. Now that summer is behind us, it’s back-to-school time. Since the fall has arrived, I wanted to bring you a quick update on the St. Cloud real estate market. I have some really great news. For starters, we’ve had 1,747 sales over the last six months. Those are really strong numbers for our area. These numbers are especially strong for homes under $200,000. We currently have 316 pending sales, indicating that sales are moving along strongly. This is in part a result of interest rates dropping back down to historic lows. “Our sales numbers remain strong.” Right now, we have just 795 homes on the market. Although it keeps us in a seller’s market, there is still a good selection of homes available. I predict this strong fall market to continue through late October before slowing down during the holiday season and picking up again in January. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Interest rates are as low as they’ve been in a while, and that’s good news whether you’re a buyer or seller. Today I’m happy to deliver some exciting news: Interest rates have dropped significantly once again, putting them below the 4% mark! What does this mean for you and your goals? Well, as rates continue to decrease, buyers have the opportunity to enjoy increased purchasing power, a shorter repayment period, or a smaller mortgage payment. Furthermore, inventory is up. We currently have over 800 homes on the market, compared to earlier this year when we had less than 650 homes for sale. Buyers aren’t the only ones with opportunities before them, though: We have 341 pending sales in our market, which means conditions are friendly for sellers as well. Given all this good news, why wait any longer to make a move? If you’re looking to make a move and save a significant amount of money on your mortgage over the life of your loan, now’s an excellent time to do so. If you have any questions or would like more information, feel free to get in touch with us. I look forward to hearing from you!

How do appraisals and online home valuations work? Today I’ll answer these questions for you. When it comes to determining home values, how do appraisals work? What about online valuation systems?  Most home sales involve an appraisal. If the buyer is using financing to buy the property, their lender is usually required to get an appraisal. An appraiser’s job is to look at the property and decide if it meets the minimum standard for the mortgage. Most homes these days won’t have a problem meeting that standard.  Next, they’ll determine whether the value of the home is appropriate, and they’ll use recent comparable home sales in the area as a measuring stick. To a certain degree, the rest depends on the opinion of the appraiser, and opinions can vary from person to person.  If the house appraises for less than the purchase price, the buyer still has the option of buying it—the lender doesn’t really care what they pay for it. For example, if a home appraises for $5,000 less than what the buyer agreed to pay for it, they’ll just have to come up with the additional $5,000 to close the transaction. “If the buyer is using financing to buy the property, their lender is usually required to get an appraisal.” In a tight market like ours, homes are increasing in value, and as a result, we’re seeing more and more multiple-offer situations. Because of this, buyers are putting more money down in order to secure the purchase of their property.  A lot of online real estate companies like Zillow feature their own computerized home valuation system. These systems are fairly accurate in terms of big data, but when it comes to single properties, they have certain limitations. They can measure things like square footage and compare this to other homes in the area, but a computer doesn’t know anything about what’s inside the house.  That’s why, when we agents determine what a home will sell for, we rely both on the statistical data and the feed on the street (i.e., the home’s condition and how it compares to recently sold homes).  If you’d like to know what your home is worth or you want to know more about this topic, don’t hesitate to reach out to me. I’d be happy to help you.

The newest numbers for our market are in, but what’s changed? Stay tuned to find out. I’m back again with the latest update on our St. Cloud market. Taking stock of our spring market first, we saw an overall strong performance. Hopefully, that momentum will keep up. Let’s jump right in:  All told, 1,137 homes have sold over the last six months, which is nearly the same as our number of sales at this time last year.  449 sales are currently pending in our market. Just a few weeks ago, that number was at 420, which is telling of how well homes are selling right now.  Better still for buyers, inventory is also up: We have 725 properties currently waiting to be bought on our market. Contrast that with last month where we had just 620. More inventory means more choices for buyers shopping for their new home. “Whether you’re looking to buy or sell in our market, this is the year to do so.” Next, we have a three-month supply of inventory—a number that’s comparatively low. Interestingly, though, more properties have been listed this year than last year, but homes that have been selling this year are selling faster than those in 2018.   What does all of this mean for you?  Well, whether you’re looking to buy or sell in our market, this is the year to do so.  Given our current conditions, sellers will enjoy a quick sale and plenty of predictability.   By the same token, buyers will enjoy a wider selection of homes and, best of all, interest rates are in the 4%, and sometimes even sub-4%, range on a 30-year fixed-rate loan. Not to mention that you can shop outside the confines of loans that require 20% down. We have programs that will allow you to make anywhere from a 0% to 5% down payment.  If you have any questions related to real estate or you’d like to talk about your options, please let us know. We look forward to speaking with you soon!

As a buyer, what are some ways that you can incentivize the seller to take a closer look at your offer amid multiple offers? Find out in today’s video. Last week, we talked about our current market’s multiple-offer environment through the lens of a seller. You can check that video out here if you missed it. Today’s topic is still centered around the frequent multiple-offer situations we’ve been seeing in our market, but this time we’ll shift our focus to the buyers’ side. As a buyer, the price range you’re looking in will have a lot to do with the level of competition you face during your search.  If you’re looking at a home that’s priced below $200,000 and in tiptop condition, chances are that you’ll be up against other buyers. The same is likely true of well-kempt homes within the $200,000 to $300,000 price range. “Demonstrating that you’ve come well-prepared carries a lot of weight with the seller.” Knowing all of this, you’re probably wondering: What can I do, then, to make my offer stand out and gain the upper hand on the competition?  A large part of it is being prepared before you step into the market. This means obtaining a pre-approval letter from your lender. There are even cases where your lender will offer full underwriting for you, so the last remaining piece is approval of the house. Demonstrating that you’ve come well-prepared carries a lot of weight with the seller.  Another point of interest is the inspection period. Although I’d never encourage a buyer to forgo an inspection if they felt it was necessary, there are certain instances that allow us to eliminate the inspection contingency. Lifting this contingency will tend to catch most sellers’ attention. However, if you’re going to sleep better at night knowing the inspection contingency is in place, I’d leave that alone. It’ll also serve you well, as a buyer, to have some flexibility with closing dates. Sometimes the seller needs to close quickly, and others need extra time before they’re ready. Whichever your seller is looking for, it’d be to your benefit to make this concession. Your agent can relay your willingness to be flexible to the seller and their agent.  These aren’t the only things you can do make the purchasing process easier for you—especially in a multiple-offer situation. For more tips or if you have any questions, please give us a call. We’d be happy to talk with you and see you next time!

In today’s market, inventory continues to be low, but the same isn’t true for buyer demand. In the here and now, our market’s inventory is in shorter supply, which is creating the occasional multiple-offer situation. Two questions, in particular, have come about as a result: What should buyers do with the current state of play? And how does it impact sellers?  Today’s focus will be on these market developments as it concerns sellers.  More than ever, we’re seeing time frames condense considerably. Consider the recent history of our market: Just five years ago, buyers would make the assumption that there was something wrong with a home that spent a year on the market.  Some time passed, and we saw that window dwindle even further—buyers made that same assumption three years when a home sat on the market for six months.  “If you’re a seller with multiple offers pouring in, you’ll want to be sure to review each and every proposal and the considerations they contain.” Fast forward to today—60 days gone by, and it raises questions in a buyer’s mind about the quality of the home. The reason for this is that buyers and sellers learn to adapt to the evolution of the market.  This time of year, we’re getting homes sold in a time frame of a week or even just a few days. We’re noticing that buyers are actively searching with such immediacy that they’re viewing properties the moment they’re marketed online and then scheduling appointments to see properties they like just as quickly.  If you’re a seller with multiple offers pouring in, you’ll want to be sure to review each and every proposal and the considerations they contain. Chief among them will be price, but you’ll also want to look closely at the other considerations.  You’ll want to figure in factors like:  Do they have a house to sell?  Do they have a house to close?  How much of a down payment are they offering?  What kind of financing will they be getting?  Other factors might include closing time, possession date, personal property that’ll be staying in the property, etc. Sellers have more options before them today than they previously would have—especially below the $300,000 price point.  If you’re interested in more information on how to handle multiple offers as a seller, feel free to give me a call. We bring a lot of experience to the table, and you can be sure we’ll do it competently and carefully. Stay tuned for our next video where we’ll talk about this same topic through the eyes of a buyer. We’ll talk to you soon!

There’s no shortage of opportunities for buyers or sellers in our spring market. Today’s market update will tell you all you need to know. Take one glance out the window and you’ll see that, at last, spring is here! That also means we’ve entered our spring market, which has been buzzing with activity over the last two months.     Let’s look at how our market is performing this spring:  Right now, we have 349 pending sales—even by spring’s standards, this is great news. Our inventory has crept up lately to about 660 homes, so buyers have a range of options at the present time. “2019’s market is full of opportunity, whatever your real estate goals may be.” If you’re looking to sell this spring, market conditions bode very well for you, because we’d ordinarily have about 1,000 homes on the market at this time.  The numbers are somewhat distorted in that our total for new listings taken isn’t much different than last year, but these listings are selling quicker. All in all, the 2019 market is full of opportunity, whatever your real estate goals may be—there is ample selection for buyers, and the market is in a predictable state for sellers.  Something else of note: Interest rates have gone through a recent drop as well. It wasn’t all that long ago when they were bumping up against 5%, and they’re now in the low 4’s.  If you have any questions about our market or you have suggestions for future video topics, please feel free to give us a call. I hope to hear from you soon!

Here’s a brief update on the current state of our real estate market. The spring market is officially here! In light of the new season, we’re noticing that homes are selling well and that inventory is increasing gradually. It’s a great year to be a seller.  Inventory is still relatively tight, so if you’re shopping for a house in this market, you’ll need to act fairly quickly—homes aren’t staying on the market for long. Additionally, the National Association of Realtors came out with a few interesting statistics about what the market is doing today that I’d like to share with you: “The focus of millennial homebuyers is less on buying homes for investment purposes and more on buying them as a place to raise a family.” 1. Homeownership rates are on the rise. This is interesting because before the 2004 recession, about 69% of homes were owner-occupied; that figure dropped down to about 62% between 2012 and 2014. In 2018, it rose up to 64.5%, which is a solid sign that more people are pursuing homeownership. 2. First-time homebuyers constitute 33% of home sales. Millennials are getting to the age where they’re thinking of purchasing homes and have begun to take up a good portion of the market. Their focus, however, is less on buying homes for investment purposes and more on buying them as a place to raise a family. 3. Married couples comprise about 63% of homebuyers.  4. 18% of sales come from single women. 5. 9% of home sales come from single men. 6. 8% of home sales come from unmarried couples who are buying a home together. Overall, we’re seeing a good, strong recovery in the market, and families are setting some outstanding goals and objectives for the future. If you’re thinking of selling a home this year, know that the market is ripe for sellers and we’d love to help you. Just reach out to us, and we can help you sell your home quickly and for top dollar. We hope to hear from you soon!

Will a new construction home break the bank? Find out in today’s message. Many people are enjoying new construction homes in today’s market. There’s a great selection of lots and land available for building sites, but some potential buyers are concerned that it’s more expensive to build a new home than buy a pre-existing one.  Let’s say we’re looking at a 3,500-square-foot house with five bedrooms, three bathrooms, and a triple garage. If it’s 15 years old, it’ll sell for somewhere between $95 and $105 per square foot. This equates to a total price of around $350,000.  Because of the recession, we had nearly no new construction in St. Cloud from 2006 to 2011. Homes built after the recession are selling for $125 per square foot up to $160 per square foot. “By building new, you have the luxury of choosing your preferred designs, styles, and decor.” If you want to build a new home now, patio homes are selling for between $150 to $170 per square foot. If you’re looking to build a traditional two-story home, pricing will be between $175 and $225 per square foot. Upgrades and add-ons can boost the price quickly. The difference between a new home and a 15- to 20-year-old home is about $150,000. If you’re looking at a home built shortly after the recession, it’s closer to a $50,000 to $80,000 difference. However, by building new, you have the luxury of choosing your preferred designs, styles, and decor, and everything is brand new—you won’t have to repair anything for quite a few years. Whether you’d like to buy an old home or construct your own, we’d be more than happy to answer any questions you may have. We look forward to hearing from you soon.

Our spring market has already arrived, despite the fact that winter isn’t yet behind us. If you’re curious what this means for you, check out today’s message. Though spring is yet to arrive, our spring market is already in full effect.  With that said, there are a few stand-out developments buyers and sellers should keep in mind moving forward.  1,199 homes have sold in the last six months, which, historically, indicates a very strong market.  Another interesting development is the year-over-year decline in inventory. At this time last year, there were about 700 homes on the market. Right now, there are just 571 listings available. It’s clear to see that inventory is tight. “Buyers and sellers alike have a lot of opportunities before them, so don’t delay in making your real estate goals a reality.” New listings are still coming in at a similar rate as last year, but increased demand means that these homes are selling fairly quickly.  As a final note, buyers will be excited to know that interest rates have dropped once again. This is a temporary development, but one that makes now an ideal time to make a move.  Buyers and sellers alike have a lot of opportunities before them, so don’t delay in making your real estate goals a reality.  If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.