Eagan's City portion of Property Taxes Below other Dakota County Cities

City's Portion of Property Taxes Below Most Others

The City of Eagan portion of property taxes are once again well below most other Dakota County cities and the 3rd lowest of 18 cities compared in the Twin Cities metropolitan area, according to data released at the December 1 Truth In Taxation Public Hearing.

“We’re proud that the City of Eagan’s property taxes are 22% below the 18-city average,” said Eagan Mayor Mike Maguire. That means that for the average Eagan home worth $276,000, Eagan’s city portion of property tax is $740 compared to the 18-city average of $946 and a high in one Dakota County city of $1,329. That’s a lower city portion than in any of Eagan’s neighboring cities except Mendota Heights.

For more information go to the city's web site or http://www.ci.eagan.mn.us/live/news.asp?menu=2207&id=16216

Indoor Community Garage Sale

Eagan Indoor Community Garage Sale coming Saturday, January 31, 2009 from 10 a.m. - 3 p.m. at the Eagan Community Center with $1 admission payable at the door (kids 5 & under free). More than 60 vendors will be offering bargains with something for everyone. Vendor registration begins on Monday, November 24 at 8 a.m. and will continue until booths are full or January 15, 2009. For more information, contact Eagan Parks & Recreation at (651) 675-5500.

Quality of Life Among the Highest in Eagan

Quality of Life in Eagan Among Highest in Metro

Ratings of Eagan by Eagan residents continue to climb according to 2008 residential survey results compiled by an independent opinion research firm. For instance, 98 percent of Eagan residents polled rate the quality of life as excellent or good. That’s up three points from 2005 numbers and the 54 percent who say the quality of life is excellent place Eagan among the top four communities in the metropolitan area, says Dr. Bill Morris of Decision Resources, Ltd.

There were other stellar numbers too:
93% said Eagan is headed in the right direction, tops in the metro area
97% said existing recreational facilities meet their household needs and 98% said current recreational programs meet their needs, the highest figure in the metro area.
The ratings for police protection were also tops in the metro area with a 93% positive ranking, and as a whole four out of five people surveyed ranked all city services positively, placing Eagan in the top quartile in the metro area. The more citizens had interactions with city staff, the higher the rankings were.
The job approval rating for the City Council (at 88%) was a five point increase from 2005 and the highest anywhere in the metro area.
Taxes and growth were the most serious issues cited by citizens. 40% felt city property taxes were somewhat or very high, while 43% felt taxes were about average or somewhat low. However, if one looks back to surveys since 2002, there has been a 14 point drop of those who would favor a tax increase if it were necessary to maintain city services, so today 44 percent would favor a tax increase if it were necessary to maintain city services and 41 percent would oppose an increase.
Another sign of the economy was the answer to a first-ever question of whether residents are aware of a home in their neighborhood with a foreclosure. 16% were aware of a neighborhood foreclosure.
“We’re proud of the extremely positive ratings Eagan residents have of Eagan city services and our great personnel,” said Eagan Mayor Mike Maguire, “while at the same time it is clear there is anxiety over the economy and taxes. That’s why we’ve made budget cuts this year and Eagan spending remains the lowest per capita of any Minnesota city with more than 50,000 residents.” Other data will help the City Council as it considers economic development goals. For instance:
Residents want a Super Target and more clothing stores.
They want to attract more family sit-down restaurants, any ethnic restaurant and an upscale fine dining restaurant.
86% cite the importance of world class Internet speeds and access and 70% support city involvement in upgraded broadband access and services.
81% say it is at least somewhat important to purchase additional land for preservation.
88% say it is important to keep undeveloped land for business expansion.
“The data will help us in a variety of ways to set priorities, measure progress and target areas for improvement,” said City Administrator Tom Hedges. For instance, in the 2005 survey while 95% rated the quality of life as excellent or good, the City looked hard at the 5% who didn’t. It turned out that new residents and those who lived in apartments rated the city less favorably. Eagan instituted the Showcase Eagan event to target new residents and connect them up with community groups and city services. This time Eagan saw a 3 point increase in favorable ratings. The survey was conducted in September. 400 randomly selected residents in all parts of the city were scheduled for phone interviews, some taking more than an hour to share their feelings on survey topics. The results are accurate to +/- 5 percentage points. View the survey results presentation watch a video of the presentation as given at the City Council Meeting.

http://www.ci.eagan.mn.us/live/news.asp?menu=2153

7 Wonders of the World

Can you list the 7 (widely accepted) natural wonders of the world?



Grand Canyon
Mount Everest
Victoria Falls
Aurora Borealis
Great Barrier Reef
Harbor of Rio De Janeiro
Paricutin Volcano

Which one is your favorite?

Timing the Market

Why Wait in your home purchase? The Potential Hazards of Timing the Market

Buyers who decide to wait until the housing prices come down more are also gambling that interest rates will hold steady or drop. What is not widely understood is the impact interest rates can have on the real monthly costs of Homeownership. Even a 10% drop in home prices is immediately nullified by a mere 1 percentage point increase in the interest rates on a 30 -year mortgage loan.

The mortgage interest rates are currently at or near historic lows. Working with a professional Realtor, such as myself, I can provide you with information on the market and housing values in your local area. Information is your most powerful tool in making your housing decision. Call me today - I can help.

Drop in Interest Rates leads to Jump in Affordability

Market Update-


Mortgage rates declined well into the 5 % range in the last month- best rates of 2008 and the most attractive since 2003. November median home sales price is around $175,000- down 19.2% from last year- this makes housing more affordable for the consumer. MAAR started tracking this affordability through the Housing Affordability Index (HAI).


Housing Affordability Index (HAI) has jumped 19 points in the last month and currently sits at 180. This is up 27.7% from December 2007, and the highest since HAI started tracking this data in 1990.

Low interest rates, abundant housing, affordability combined together make this a perfect buyer's market. Now is a great time to buy, call me about more information on this great opportunity.

FHA CHANGES- TIME RUNNING OUT

Time is running out to take advantage of the 3% minimum down payment requirement and the temporary loan limit of $365,000 on FHA loans. The FHA loan must be closed by 12/31/08. The minimum down payment requirement must have an appraisal ordered by 12/31/08 but can still close in 2009.

On January 1st, 2009 the new required down payment will be increased to 3.50% and the new loan limit on a single family home will be $318,550.

INTEREST RATES

Mortgage Rate Update!

The interest rates are at historic lows and housing prices have moderated thus setting up a great scenerio for people who need to refinance or are looking to buy a home. Over the past 2 weeks, borrowers are now able to purchase almost 10% more in price because of the drop in interest rates.

First Time Home Buyer $7500 Tax Credit

Time is running out! There is only 24 days left to take advantage of the FTHB tax credit for 2008. This temporary tax credit incentive is available for purchases of a principal residence on or after April 9th , 2008 and available through July 1st, 2009. The FTHB is defined a an individual who has not had ownership in a principal residence in the previous 3 years.

Call me for more information.

Eagan Rated #1 Place to Raise Children in Minnesota!

Eagan was rated as one of the best places to raise children in 2009 by Business Week magazine. This rating was based on a number of factors including school performance, number of schools, crime rates, job growth, household expendures, air quality, job growth, family income, parks, theaters, museums, diversity and other amenities.

School performance and safety were weighted most heavily in the poll. The magazine went on to describe Eagan's community as "an upscale community with good schools, ponds, rolling hills, woods, and open space."

http://ci.eagan.mn.us/

For more information on Eagan or surrounding communities please don't hesitate in contacting me. I will be happy to answer any questions you may have.

Five Ways to Fund a Down Payment

I often get the question..."How much money do I need for a Down Payment on a home?"

Some people may be surprised that it only takes 3% (January 1, 2009 it raises to 3.5%) to fund a down payment for a FHA loan.

Here are the TOP 5 ways to get a Down Payment to Purchase your Home.

1. The New Tax Credit- for a limited time only, the government will give 1st Time Homebuyers (who have not owned a home in the last 3 years) a tax credit up to $7,500, when purchasing a home.





2. Gift Funds- a gift from a relative is permissible for either a FHA or conventional loan.





3. Down Payment Assistance- many programs have been eliminated, however there is still some assistance available for quailified borrowers. Ask me for more details.





4. Borrow against your 401 K - if you conribute to your company 401k you may be able to borrow against your retirement funds. Check with your HR benefits Specialist for details.





5. Save and Sell- Save your tax refund, sell items you no longer need on Ebay or Craig's List. Take on a part time job or work over time hours. Even a small amount saved can add up over time.

Investment in a Home has always been a good sound investment. It can result in tax savings and appreciation over time. Ask me for more information.

Market update in the Twin Cities

Twin Cities Housing Update:


Per the Minneapolis Area Association of Realtors for the week of November 3, 2008



"The big let down in home sales that many of us have expected following the recent drops in consumer confidence has yet to materialize in the Twin Cities housing market. For the week ending October 25, there were 602 pending sales, up 17.1 percent over the same week last year. Despite the uncertainties swirling in the general economy, home sales continue to post year-over-year increases every week. Lender-mediated sales continue to grow market share, as 51.1 percent of pending sales for the most recent reporting week were foreclosures or short sales, which should mean continued declines in median sales prices."

"New listings for the same week were down 2.0 percent from the same week in 2007, and the total number of active homes for sale is down by 9.2 percent year-over-year."



This is a clear sign that the market is improving and continuing to correct. The real estate market needs to clear out the foreclosure inventory and this is happening with the over 50% of all sales bank-owned or lender mediated.



I often get the question, "when will we hit bottom in the real estate market?" I wish I could look into a crystal ball and give you an answer, but I will try the next best thing. What experts are saying is this, "One year from now, we will not be seeing any appreciating values. Best case scenario, we will maintain current property values. Some will say that we have hit the bottom already, or are very close. Some feel we have another 6-12 months beofre we see the bottom. The truth is we wont know when we hit the "bottom" until it has already happened (or probably 6 months later). There is no way to time the market- similar to the stock market. Real Estate is and has always been a Long Term investment. With all the positive things going on in the market - great Buying opportunities for First Time Homebuyers and move up buyers, low interest rates, good inventory, the time has never been better to invest.

Important Things to Look for in a Real Estate Agent

• Knows the Market- you want an agent who is informed on the changing market, not just what is for sale in a particular neighborhood. Someone who knows the trends in the area, is knowledgeable on the neighborhoods, and educated on how the market is changing.




• A Great Listener- you want an agent who really listens to your wants and needs. In the fact finding process your agent may ask you a lot of questions- this is to get an idea what you are looking for and your goals and motivations. This is an important step in the home buying process. One who really listens is very important quality to have and can save you time in your search.




• Help you Figure out what you can afford- you want an agent that can run some numbers for you and provide a list of qualified lenders that you can discuss pre-approval with. You want an agent that will stick within your budget and look at those houses in that price range.

• Help you Narrow your Search- it is great to start your home search on the internet, you can get a list a mile long of homes of interest. When the time is right an agent can really help you sort through that list. A good agent will help you weed through the properties and set up the showings. An agent may also preview properties for you.




• Help you determine an offer price or evaluate an offer if you are selling. - a good agent can gather market information or comps on the properties that have recently sold in the area. A CMA is put together with this information so you can make an educated decision on your offer.





• Help you get more value from the Property- a good agent has a trained eye when if comes to looking a properties and their values. They can advise on what improvements would bring more value to the property or what can distract from the home. Also a good agent knows contractors or experts in the field that they can refer for expert opinions.





• Will be with You from Start to Finish- From the inital fact finding meeting, showing properties, the offer, working with the mortgage lender and title company all the way to a smooth close. A good agent will represent you in all stages of the home buying process.





• Market your property agressively- a good agent will use innovative marketing ideas to help sell your property for the best price. Offering staging tips, quality photographs of the home, various internet marketing venues (ask me about marketing at the Edina Kiosk), MLS and other creative outlets. Offering open houses and broker opens. You want a good agent to represent you in selling your home and one that can get the job done.

"Working for you, Working with you." is my motto.

Let me help you in your Home Buying or Selling Process.

Tax Benefits in Owning a Home

Before a home owner curses the troubled housing market, he or she should take solace in the U.S. tax code, which makes buying a home a good deal for almost everyone.

Here are some reasons why:

• Mortgage interest deductions- in some cases including mortgage insurance premiums, reduce home owners' tax liability by reducing income.The deductions can be used on both first and second home mortgages.



• Interest on home equity loans are also deductible.



• Profits from the sale of a home can potentially be tax free* (* when a primary residence is sold the profits are tax free up to $250,000 for single home owners or $500,000 for married home owners filing. Any profit above this usually is a long term capital gain at 15%- less if the seller's tax rate is less than 20 %.

Tax laws change, please contact your tax attorney or accountant for specific tax questions.

How to raise your Credit score.

Thinking about buying that first home? Check your credit score. There are 5 categories that can effect your credit score.


Here are some tips to help raise that score.

1. Pay your bills on time. 35% of your score is dependent on your payment history. Make a plan-set up auto pay and maintain a budget.






2. Keep credit balances at 30 % of your credit limit, or lower.






3. Don't cancel credit cards to up your score. about 15% of your score is based on long you held your card. A card you have had a few years is better than a new one. Be sure to have a credit card, as no credit history can also throw off a score.






4. Don't apply for too many credit cards. about 10% of your score is determined by how many times lenders request your credit report. Don't apply for too many cards.






5. Watch the kind of credit you use. about 10% of your score is based on the types of credit you are using. Secured (car loans and mortgages) or unsecured (student loans, credit cards) Unsecured loans are considered riskier on your report.

information from USAA Magazine

What is a Short Sale?

Among the real estate questions I am getting beside "How is the Real Estate Market?" is what is a Short Sale? By definition, a short sale is a work out program that allows borrrowers to sell their property, even if the proceeds are less than the loan payoff amount due to low property value. The lender will usually agree to this arrangement if they feel that it will result in a lesser loss than going thru Foreclosure, or deed-in -lieu, and is faster and less expensive.

Short Sale, Foreclosure and Deed-in-Lieu can all have a significant impact on a homeowners credit. How banks handle each of these scenerios can be different. Be sure to consult your lender or a real estate attorney to investigate all options.

Call me to answer your questions on Short sales, including where to get started or any other real estate questions you may have.

Market Update in the Twin Cities

August showed a 15 percent increase in pended sales year -over-year for the second consecutive month in the Twins Cities housing market. (Pended sales are accepted offers on properties that have not yet closed ). The good news is that the number of homes for sale in the 13 county metro area is down 9.2 % from August of last year. This trend is what we need to help stabilize home prices.

According to the Minneapolis Area Association of Realtors, we saw in September large increases in activity in the lower price ranges. This is likely the result of sales in foreclosure and short sale properties. With the lower interest rates and price pressures it makes affordability is 19% ahead of last year at this time.

New Carbon Monoxide Detector Law

A new State law requires carbon monoxide detectors in all single family homes.


What is Carbon Monoxide?

it is a toxic, colorless and odorless gas that interfers with the delivery of oxygen throughout the body.

Sources of Carbon Monoxide:

• gas water heaters


• woodstoves and fireplaces


• unvented kerosene and gas space heaters


• leaking chimney and furnaces
• gas stoves


• exhaust from cars in attached garages


• back drafting from furnances

Symptoms:

• flu-like symptoms- headache, dizziness, weakness and fatigue.


• at higher levels- confusion, disorientation, impaired vision, and coordination, brain damage, coma, and death.

Types of Detectors:

• varieties include plug in and battery-operated. Make sure it meet Underwriters Laboratories Safety 2034.

Place each detector within 10 feet of each room used for sleeping.

Check your Credit Report

Under the Fair and Accurate Credit Tranactions Act, every American is entitled to a Free Credit Report annually from each of the 3 main credit bureaus. TIP: Even though this report is a free report your actual credit score does not come with this report. You'll have to purchase it for about $6 apiece from each bureau. You may also find that your credit score may vary within each bureau. This is all based on what information the bureau has on you. If you are considering purchasing a home this is a good place to start in getting your finances in order, if you not planning on a move it is also a good idea to check you credit periodically.

• Equifax~equifax.com (800) 685-1111



• Experian~ experian.com (800) 397-3742



• TransUnion~ transunion.com (800) 888-4213 or

Go to annualcreditreport.com (877) 322-8228.

1 in 4 credit reports contains a serious error that could lower your score and stop you from getting a loan, or one with the best terms. source: Public Interest Research Group

It is never too late to check your report -any questons please contact me.

Buy Now or Wait? How about a $7500 Tax Credit!

This seems to be a Hot Topic among First Time Homebuyers and their agents. Should I buy now or wait until later? Here is some good news that may help you in making that decision. The Housing and Economic Recovery Act of 2008, signed into law on July 30,2008, offers a $7500 First Time Home Buyer Credit to those who qualify. The law provides a tax credit equal to ten percent of the qualified home purchase price. This credit is essentially an interest- free loan that is required to be repayed over time (without interest) over a 15 year period. What a great incentive to purchase that First Home!

For more information on this program please call me for details, or you can check out the website maintained by the National Association of Homebuilders at http://www.federalhousingtaxcredit.com/

If you have closed on a recently purchased home, after April 9th, 2008, you can also qualify for this program.

Burnsville Center Kiosk

FHA Financing is Back!!!

Actually it never really went away. Years ago, a large percentage of metro area home sales were involved with FHA financing. With the advent of alternative subprime mortgages, for which we are hearing about so much in the media, FHA lost much of its marketshare. The FHA program now is back in full force. Area statistics show that FHA loans have jumped in the last month 23% of all first mortgages. That compares to 1.8% two years ago and these numbers are on the rise.

Why is this program so good for First Time Homebuyers? First of all it requires a low down payment, a more lenient qualification guideline and the rates right now are so low it is an incredible deal! There is also the option for the buyer to receive a gift to use for their down payment.

FHA mortgage loans are not just limited to First Time Homebuyers! The FHA Program has been revamped in part from the Federal Governments Economic Stimulus plan. The FHA loan limits have increased to $365,000. Great news or buyers!

If you are not familiar with FHA financing, now is the time to learn. If you would like to receive more information on FHA loans or other financing programs let me know and I will get you in touch with a Mortgage Consultant.

First Time Home Buyer?

Are you a First Time Home Buyer? You may be asking yourself where do I start in this process. Here are a few helpful tips to get you started in the process.

• Make a list of the "must haves" and "would like to haves" in your 1st home. Recognize that there is no such thing as a perfect home. So when you begin that search, and most FTHB do start on the internet, keep that in mind.





• Consult with a mortgage professional before you begin your home search. It is important to know your price range. A mortgage consultant will advise you on programs that are available to you based on your credit report, employment history and your expectations. Once your options are layed out and you are comfortable with your monthly housing payment you can shop with confidence. It is never to early to get pre-approved. Ask me about a referral list of Mortgage Consultants.





• Talk to a Realtor! They will listen to your wants and needs, not only what you would like in a home but also the community. Your Realtor will work with you to set up homes to view that are based on your criteria. Call me with any questions on how to get started on this process.

Look for more postings in the future on First Time Homebuyer Tips!

Welcome ...

If you are a 1st Time Home Buyer, owned a home in the past, or perhaps have not bought a new home for many years -things have changed and continue to change in the market!!! This Blog is set up as a resourse in helping you understand the real estate market and many of the changes that are happening. It is a interactive tool, just post your question or comment. Check back and I will keep you updated on the local real estate news! Enjoy!