Financing New Construction There are a multitude of ways for Buyers to finance the construction of a new home, including going through the builder (especially true of the bigger ones). However, the two main choices from bank lenders are: 1) what’s called a “construction-to-perm(anent) loan”; and 2) an initial mortgage to purchase the lot, followed...Read More
“Full Plate” Syndrome (Unrelated to Thanksgiving) When a old, undersized house in a hot neighborhood for tear-downs and new construction fails to sell right away, what might be the explanation? In fact, just such a home debuted on the market near Minneapolis’ Cedar Lake this week. One possibility is that the home is overpriced. Theory...Read More
Maybe It’s the Other Way Around “New construction often brings down the value of older homes, which wear out and go out of fashion, dragging down prices.” –Robert J. Shiller, “Housing Market is Heating Up, If Not Yet Bubbling”; The New York Times (9/29/2013) It’s a classic glass half full/half empty debate: housing bears such...Read More
Looking for a Size 47 1/2 How is drafting a real estate contract — or almost any contract, for that matter — like picking a men’s suit? In both cases, the usual starting point is to select the closest-fitting, existing garment — er, legal boilerplate — you can find. Step #2: altering (“customizing”) it to fit...Read More
Four Reasons to Inspect No one has a new car professionally inspected before they buy it (though they likely take it for a test drive — or three). Why pay several hundred dollars to inspect a brand-new home? I can think of four reasons: One. To get a professional’s assessment of construction quality. A good Realtor...Read More
“Top 10” Trends Fresh off the Fall 2012 Parade of Homes — I showed clients eight new homes in and near Edina today — here are the “Top 10” trends in new, upper bracket Twin Cities homes (at least in the eyes of yours truly). A majority of the trends are already well-established in the marketplace, and will...Read More
