Real Estate Ray's Blog

Amid the turmoil on Capitol Hill, Wall Street and major news networks, the Sioux Falls housing market has a bit of good news to report;

• Closed Home Transactions in Sioux Falls for September were up 3.8%the same time last year
• Pending Home Sales in Sioux Falls during the month of September were up 1.8% from last year

Sioux Falls is fortunate. Sioux Falls has a broad economic base and it's a regional shopping center for 3-states. People are still coming to Sioux Falls for shopping, dining and entertainment. People are still moving to Sioux Falls, finding good jobs and buying affordable home to raise families.

Homeowners selling a home in Sioux Falls are still getting 96.7% of their listing price on average. The average days on the market is 80 days, up slightly from 75 days just a year ago.

Now more than ever, the condition of a home is vital. Buyers are searching for a home that they can move into immediately...one that requires no fix up or clean up. Little things, such as staging, painting or fresh carpet can make a big difference.

If you or someone you know is thinking about putting their home on the market, but can't decide if now is the time to do it or if you should wait until spring...feel free to e-mail me...I'd be happy to weigh the pros and cons with you. There are benefits to both.

*statistics gathered by RASE

The South Dakota Housing Development Authority has adjusted the South Dakota First Time Home Buyer interest rates again. Once the most popular program for first time home owners in South Dakota, because of the low interest rate, this program has increased it’s interest rates twice in just this month alone. The reason?...the cost of borrowing money to loan out has increased.

• South Dakota's First Time Homebuyers Program. Can be used in conjunction with Conventional, FHA, VA or RD/USDA program guidelines.
• The Step Rate:This program offers the opportunity for an initial interest rate of 5.125%. Each year for 5 years it increases by .5%, capping out at 7.125% for the remaining life of the loan.
• The Fixed Rate Program: The interest rate is 6.125% for the life of the loan.
• The Fixed Rate Plus Program: This program offers a slightly higher fixed interest rate of 6.625% however, it also offers a gift of up to 3% of the buyers closing costs to be paid by SDHDA. This is a program to secure 100% financing by building closing costs into the interest rate.

These programs can be used for existing homes as well as New Construction homes. SDHDA programs are available and certain income guidelines do apply.

Is the South Dakota First Time Homebuyer Program the best choice for you? In some cases yes and in others…no. If you qualify for a Federal Housing Authority loan, your interest rate is 5.865%, fixed for 30 years (as of 10/24/08). However, you’ll need to have at least a 3% down payment.

If you don’t have the 3% down payment, you may be better off combining the FHA loan with the SDHDA Fixed Rate Plus Program. You’ll pay a higher interest rate, but you’ll have very little money out of your pocket. Always seek advise on financing options from a reputable, qualified and trusted lender.

For more details on South Dakota First Time Homebuyers programs or any other questions regarding home buying or selling, feel free to e-mail me at ray@hjnteam.com or call me at 728-9997.

Buying a home, whether it’s your first home or your 2^nd or 3^rd, can be time consuming. Here are some tips to ease the stress, save time and frustration when you’re searching for a home;

• Make a list of things you NEED in your new home and a list of things you WANT in your home. There’s a big difference between the two lists. It’s been my experience that home buyer’s lists change as they see more homes in their price range. Many times my clients have purchased a house that they fell in love with and the house only has a few of the items they listed when they first started looking at homes.
• Find a Realtor that you like and hire them! The Realtor is being paid by the person selling the home, in nearly all cases. What does that mean for you, as a buyer? Having a Realtor working for you means that they will show you homes around your schedule…when you’re off work. You’ll also be shown multiple homes each time your go out with your agent…not just one. No more wasting your weekends chasing open houses and calling the name on the sign in the yard. The best part is...it doesn't cost you a penny to have an agent working for you! Be sure to ask your agent about their experience before you hire them...how long have they been in real estate, how many homes have they sold, do they have references. You want a Realtor that you like, but you also want someone with experience as well.
• Communicate with your Realtor! Tell your agent what you want and what you need, what area you like/dislike, the type of house, etc. The more information you give your agent the better they can serve you. Also, when you’re touring homes with your Realtor, tell them what you liked and what you disliked about each home you tour. This information will help your agent find the home that fits your needs faster.
• Go to the bank! It goes without saying, you must be pre-approved prior to touring homes. The person selling the house wants to know that you have the ability to purchase. Without your pre-approval letter from the bank, you are a lookee loo...people selling their home want serious buyers…not lookee loo’s.
• Be calm! Once you’ve found the house you like, the process of making an offer, conducting inspections, appraisals and surveys can take a few weeks. Your Realtor will be able to guide you through the process. You may need to negotiate…stay calm. Don’t let your emotions override your logic. Remember, when you’re negotiating anything, the one who stays calm always wins.

For more tips and advise on purchasing a home in Sioux Falls or the surrounding area, feel free to e-mail me at ray@hjnteam.com or call me at 605-728-9997

First time homebuyers in South Dakota have a wonderful choice of loan programs to choose from when purchasing a home. The South Dakota Housing Development Authority offers 3-financing options to choose from:

• South Dakota's First Time Homebuyers Program. Can be used in conjunction with Conventional, FHA, VA or RD/USDA program guidelines.
• The Step Rate:This program offers the opportunity for an initial interest rate of 4.75%. Each year for 5 years it increases by .5%, capping out at 6.75% for the remaining life of the loan.
• The Fixed Rate Program: The interest rate is 5.75% for the life of the loan.
• The Fixed Rate Plus Program: This program offers a slightly higher fixed interest rate of 6.25% however, it also offers a gift of up to 3% of the buyers closing costs to be paid by SDHDA. This is a program to secure 100% financing by building closing costs into the interest rate.

These programs can be used for existing homes as well as New Construction homes. SDHDA programs are available and certain income guidelines do apply. 

For more details on South Dakota First Time Homebuyers programs or any other questions you may have about home financing, feel free to e-mail me at ray@hjnteam.com or call me at 728-9997.