Wightman - Brock
Real Estate Advisors serving Rochester MN and surrounding areas

How to Navigate Multiple Offers

In a largely competitive real estate market like Rochester, MN, it’s likely you’ll encounter a multiple offer situation in your search for a new place to call home. No matter which side of the table you’re on, navigating multiple offers can be difficult. Here’s our guide for what to expect in multiple offer negotiations from all sides.

Information for the Seller:

Congratulations! People are lining out the door to buy the home you’ve loved, grown in and cared for over the years. But beyond the initial excitement, there are risks to consider. In a multiple offer situation, the market is hot and pressure is on the buyer to put an offer on a house they like. Some eager buyers might make a hasty offer on a house they think they love, and they could be at risk for backing out at the last minute. By the time this happens, other buyers who are interested have likely moved on to other options, leaving you empty-handed.

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Multiple Offers – Seller, Agent, Buyer Perspectives

Ron & Lynn Wightman, and Randy Brock discuss the different perspectives of multiple offers and all that goes along with them. With multiple offers, what do you have to deal with as a seller? What does it look like as an agent, and what does it look like as a buyer? Strong offers, how to navigate multiple offers while keeping your liabilities low, and home inspections. Also, what’s happening with the spring thaw and spring housing market? Literally how much water is sitting on the ground right now?

Home Matters – Ep. 5 – Julie Brock – Education & Workforce Development

Randy’s lovely wife joins him today to chat about education, workforce development, and her career as the Executive Director of Cradle 2 Career in Rochester, MN. http://c2cmn.com We also chat about city growth, where we see it headed, and our own house story.

Music from https://filmmusic.io: “On My Way” by Kevin MacLeod (https://incompetech.com) License: CC BY (http://creativecommons.org/licenses/by/4.0/)

Home Matters – Ep. 4 – Broker, Chris Ratzloff

Joining Randy today is Chris Ratzloff, Designated Broker of Property Brokers of MN. Why an independent brokerage? And what is the history of Property Brokers in Rochester, Minnesota? What is its vision? All this plus some hockey talk and the spring housing market…

info@wightmanbrock.com

Music from https://filmmusic.io: “On My Way” by Kevin MacLeod (https://incompetech.com) Licence: CC BY (http://creativecommons.org/licenses/by/4.0/)

Home Matters – Ep. 3 – Color!

Lynn Wightman joins Randy and Ron to discuss color choices, palettes, and the environment that color creates. Not just for home sellers, but for anyone looking to make some change around their house. How do you choose a color palette? Is it okay to mix and match throughout the house? What styles are fading and which ones are making a comeback? And who says that colors and styles need to come and go? For sellers… staging and decorating are two totally different skills. Lynn is here to advise!

Also, we chat about multiple offers from the seller, buyer, and agent perspective. And it’s been 5 years since the kick-off of DMC (Destination Medical Center) in Rochester and we take some time to chat about that too.

Music from https://filmmusic.io: “On My Way” by Kevin MacLeod (https://incompetech.com) Licence: CC BY (http://creativecommons.org/licenses/by/4.0/)

Home Matters – Episode 2 – Spring Market & Incoming Residents

In this episode, Ron and Randy discuss how the housing market in Rochester (and other areas) responds to the changing season and the influx of medical residents into the city. How do you adjust, if at all, as a seller, and what should you focus on? What do you expect if you’re the buyer? Despite the Polar Vortex and near-record low temperatures, there are signs of spring upon us already…

Making Halloween Safe for Everyone

Putting a teal pumpkin on your doorstep means you have non-food treats available, such as glow sticks or small toys. This simple act promotes inclusion for trick-or-treaters with food allergies or other conditions.

  • Provide non-food treats for trick-or-treaters
  • Place a teal pumpkin in front of your home to indicate to passersby that you have non-food treats available
  • Add your home to the Teal Pumpkin Project map

Available at dollar stores, party supply stores, or online shops, these low-cost items can be purchased and handed out to all trick-or-treaters, or made available in a separate bowl from candy if you choose to hand out both options. Nearly all of these items can be found in a Halloween theme or festive colors.

  • Glow sticks, bracelets, or necklaces
  • Pencils, pens, crayons or markers
  • Bubbles
  • Halloween erasers or pencil toppers
  • Mini Slinkies
  • Whistles, kazoos, or noisemakers
  • Bouncy balls
  • Finger puppets or novelty toys
  • Coins
  • Spider rings
  • Vampire fangs
  • Mini notepads
  • Playing cards
  • Bookmarks
  • Stickers
  • Stencils

ARE THERE ANY NON-FOOD TREATS THAT I SHOULD AVOID?

There are a few considerations when choosing which non-food items to hand out. First, some non-food items still contain food allergens, such as some brands of moldable clay, which may contain wheat. Additionally, try to choose latex-free items, as there are children who have latex allergies.

CAN I STILL PASS OUT CANDY?

Sure – just do it safely! The point of the Teal Pumpkin Project® is to make trick-or-treating as inclusive as possible. You can keep the experience safe by keeping your food treats and non-food treats in separate bowls.

IF I’M HANDING OUT CANDY AND NON-FOOD TREATS, HOW DO I DETERMINE WHICH TREAT TO GIVE TO EACH TRICK-OR-TREATER?

You can either ask trick-or-treaters if they have any food allergies or give every visitor a choice of which treat they’d like: candy or a non-food item.

DO KIDS REALLY LIKE NON-FOOD TREATS?

They don’t just like them, they love them! Finding a unique treat at your house will be a fun surprise. Glow bracelets, for example, are a great option. They are inexpensive, kids can wear them throughout the night, and parents are appreciative because they help make kids more visible after nightfall. Other non-food items, such as pencils and stickers, can be used at home and at school long after the candy has run out or expired.

Fall Clean-up

 

Like death and taxes, there are a few things certain in life, and at this time of the year, you can count on those leaves falling. If you’re flirting with the idea of letting nature take its course and enjoying a carpet of leaves all autumn, don’t. Come spring you’ll have an anemic lawn, thanks to the mold buildup. Ah, the joys of the four seasons.

But it is possible to take care of that autumn chore and still have time left over to sip apple cider and pick pumpkins. To help liberate you from excessive leaf labor and other fall “musts” for your home, we have provided a simple checklist that will eliminate the guesswork. Click on the link below.

WB fall check list

If you have further questions about which projects are necessary or you’re thinking of listing soon, please contact us.

Your Home Financing Questions: Answered with a Rochester, MN Expert

Getting started in home financing can be a challenge. With so many behind-the-scenes processes, documents, definitions and moving pieces, where do you start?

That’s why we’ve enlisted the help of Shannon Olander, a trusted wealth management mortgage banker at Bremer Bank in Rochester, MN. With over 20 years of experience in the banking industry, Shannon specializes in helping individuals and families finance the home of their dreams. Read on as Shannon answers our most-asked questions on home financing.

Moving to a new community, where do I start the lending process?

The first step is to find a trusted lender. I advise to work with a lender you know or a recommendation from friends or family. Having a positive and trusting relationship with your lender is key. Starting this process with someone you trust to handle these personal, financial and organizational intricacies will set a solid foundation for your lending experience.

Before you go any further in the home search, you’ll need to get pre-approved or prequalified for a home loan. If you find out you are approved for more than expected, this does not mean you should buy at a higher price point. Basic budgeting rule number one indicates to always budget for more than you expect. Some things in life will pop up that aren’t factored into your debt-to-income ratio, like day care or routine travel expenses. You’ll need to make sure these costs are accounted for when purchasing a home.

What is the difference between a pre-approval and pre-qualification?

Great question. A pre-qualification is essentially an approximation – a lender has evaluated your creditworthiness and decided you will most likely be eligible for a loan. A pre-approval is when the lender pulls a credit report and looks at the complete picture of your debt-to-income ratio. It’s an official statement from a lender certifying you are eligible for a specific mortgage amount based on the entirety of your financial information.

While a pre-qualification can be helpful to determine how much a lender is willing to give you, a pre-approval can give you that reliability edge to a seller.

What kinds of things can affect home financing after a pre-approval?

Taking out additional credit and not letting us know! After a successful pre-approval, you shouldn’t do or purchase anything that could affect your credit report or your debt-to-income ratio. That means no new car, furniture, job status, etc. Your income, debt and assets are all factors that could affect your pre-qualification status.

Do you have programs for first-time homebuyers?

Absolutely. From down payment assistant programs, rural housing development, gateway program that covers 100 percent financing and FHA loans, we have access to many programs that could benefit you as a first-time homebuyer.

If you have enough in savings for a 5 percent down payment, it’s generally best to go the conventional financing route. Your lender will be able to evaluate these financing options with you and find a route that will best work for your unique financial situation and needs.

How do you combine credit scores for two people applying for a single home loan?

Good question. We pull reports from three separate credit reporting agencies; take the middle score for each person; then take the lower of these credit scores between you and your co-borrower.

For example, if my three credit scores report 650, 700 and 750, the lender considers the middle score at 700. My husband’s agency scores are 700, 750 and 800, and the lender considers his middle score at 750. Between these, the lender would take the lowest of your two scores, which would end up as 700.

Many lenders set their minimum credit score at 640 or higher to apply for a mortgage.

How do you work with someone who has experienced bankruptcy or other credit issues in the past?

Luckily, recent laws have made it easier for someone with a past short sale or bankruptcy to get preapproved for a home loan. Although a typical lender would like to see at least four years since discharge, there are many different options for moving forward with a home loan, even with past credit issues. Your lender will look at your entire financial picture to determine if it’s possible to move forward with a pre-approval.

To help potential borrowers, we also offer credit counseling to learn more about the types of behaviors that determine your credit score and the role your credit report plays in big financial decisions like home financing.

Does refinancing our loan affect our ability to buy another home in the future?

A refinance does not affect the process of a second move. In fact, current homeowners have a few options when looking to move.

An option many people don’t know about is the bridge loan. For homeowners who have earned high equity in their current home, we can pull equity out and “bridge” it from the old to the new property. Don’t have the means to do a bridge loan? Most banks offer what we call recasting of a loan, where the loan amount starts higher but can be recast to bring the principal reduction down and hence, smaller payments.

Nationally, mortgage rates have been on the rise, up 48 percent since 2011. What are your thoughts on the interest rate increases and what this means for potential buyers?

I’m glad you asked this question. Mortgage interest rates are certainly on the rise, with the average rate for a 30-year fixed mortgage between 4.375 and 4.5 percent. And although they are gradually on the incline, the keyword here is gradually. When I first started in the market, the average rate was just around the 8 percent mark and it was still a great market. Interest rates are not the end-all, be-all of home buying – people will move regardless. And, it’s a good thing rates are gradually inclining and not jumping.

What are potential challenges for borrowers here in Rochester?

Our biggest challenge is one of inventory – there are simply not enough houses on the market to meet demand, and homes on the market are selling extremely quickly. In fact, there are an estimated 40 pre-approval applications in our office right now, waiting to be processed.

Price point is another challenge for potential buyers in Rochester. Since higher price ranges have higher inventory, it makes competition even more fierce for the average or first-time home buyer.

From a lending standpoint, however, this housing shortage is not affecting appraisals, and we are able to work quick on our feet based on client needs.

If you are starting the home buying process or have questions about options for home financing, we’d love to help you get started. Contact us today.