August 2015

Found 3 blog entries for August 2015.



Unless you wheel and deal in the financial markets, the home purchase agreement is one of the most important contracts you’ll ever put your signature to. Today we take a look at some of the parts of the agreement you’ll want to get to know.

Earnest Money Deposit

Line 3 of the purchase agreement here in the Twin Cities deals with the amount of money you’ll be putting down as an earnest money deposit. Don’t confuse this with the down payment, which is a lender requirement.

The earnest money deposit shows the seller that you are earnest about buying the home. In Minnesota the deposit typically amounts to 1 percent of the purchase price of the home and it is kept in the broker’s trust account; in this case it will be held with Edina

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Although it may not seem like it while you’re knee-deep in the North Oaks house-hunting process, the day will come when you find the perfect home and decide to make an offer to purchase. Before you commit, there are a few things to consider:

  • The average monthly utility bills and maintenance costs may push your budget over the limit if you are buying at the top of your approval range.
  • Is the house priced properly? I’m happy to crunch the numbers to determine the home’s current market value and the percentage of list price that homeowners are realizing in the current market. This way, you’ll have a better idea on how much to offer.
  • Is the home located in a floodplain? If it is, your lender will most likely require you to buy flood
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Home Selling

There are several reasons leading to a low appraisal. You shouldn’t be surprised as it can happen during a hot, cold or neutral market. Usually it is caused by artificially inflated prices contributed by several offers and deteriorating market value caused by low demand.

There are a few solutions you can use when a low appraisal becomes an issue. Here’s what you should consider.

Buyer Pays the Difference

If the low appraisal affects the loan-to-value ratio, the lender will not offer the full amount of loan to the buyer. Not to say that the lender will completely reject the loan offer, but the loan amount will be based on the agreed loan-to-value ratio on the appraisal. Therefore, if the seller won't lower the price and the buyer wishes to

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