Jim Scheller - ABR, SRS, e-Pro, GRI

Let's talk timing.

A buyer's market like the one we are in now is perfect for two kinds of buyers: renters and buyers who are buying up.

Renters for obvious reasons: mortgage rates are low, and so are house prices. If you're renting it doesn't get much better than this.

That makes sense, but why is a buyer's market perfect for people who are buying up?

The NAR (National Association of Realtors) keeps very good records of this kind of thing, and they say the average homeowner who buys a new home buys a new one worth about 50% more than their old home's value. If you're one of those people who are looking to buy up to a bigger or fancier home, you might be thinking "Right. They say home values have declined 10% (to use a round number), and I'm supposed to be happy about that? How can I buy a new house when I'm getting 10% less for my house than I thought I was going to get?"

Sounds good, but there's one thing you have to remember: while your house was losing value, everyone else's house was losing value too.

Here's how it works: Let's say a year ago your house was worth $200,000. Let's also say that for the last year you've had your eye on that nice $300,000 number on the other side of town. Now, with values down 10%, your house is only worth $180,000. You basically lost $20,000. But the good news is that the house you've been drooling over for a year has also lost 10% of its value, or $30,000, and you can pick it up for just $270,000. When you add that into the equation, you end up making $10,000 on the transaction! (The $30,000 you made on the buy minus the $20,000 you lost on the sell.)

It's like all the economic forces went into creating this buyer's market just for you!

Nice, no?

Of course you'll want to get the most dollar you can when you sell your $200,000 house, and with my marketing efforts you can, but just remember it's better for your pocketbook to price your house right and get it sold quickly so you can get into that new, pricier home before the market changes.

Contact me and we can talk further: 507-317-0177 or jim@MankatoHomesOnline.com.

DOLLARS-IN-POCKET ALERT!

If you bought a house and you are paying PMI insurance, pay attention:

New for 2007, the PMI insurance you paid may be tax deductible.

For families with an adjusted gross income for the tax year 2007 of $100,000 or less, every last dollar you paid for your PMI insurance is deductible. Every one.

For families with an adjusted gross income between $100,000 and $109,000, a reduced benefit is available to you.

The average family will see about $350 more in their pocket if they take advantage. So take advantage!

(I'm not a tax guy, but if you have questions, contact me and we can find someone who can help: jim@MankatoHomesOnline.com or 507-317-0177. Check out my site at http://www.mankatohomesonline.com/ )

Donate to Your Favorite Charity - For Free!

After considerable thought, I've decided to share the wealth.

If you become my Buyer or Seller client after January 1st of this year, I will donate 10% of my net commission* to the charity of your choice - you pick! All you have to do is take advantage of my friendly expertise and come up with a non-profit charity which will accept my donation.**

There are so many possibilities: think local, think national, think global. There are people in the Mankato area and all over the world who will appreciate your contribution, even if I get to write it off when tax season comes! I would like to suggest you find a charity that is reasonably efficient with the money they get, however, because I'd rather see my dollars do as much good as possible. You can find what kinds of charities are out there, how efficient they are, and all sorts of interesting things by checking out the following sites:

Better Business Bureau's "Wise Giving Alliance"
Charity Navigator's "Guide to Intelligent Giving"
American Institute of Philanthropy's "Charity Watch" Guide

Call today to take advantage of this unique opportunity to get first rate care from your favorite Realtor and donate to your favorite charity - all at the same time!

If that's not a win-win-win, I don't know what is. Call today! 507-317-0177

* After a successful closing and after my broker takes his deserved share.
** The organization must be able to provide proof of their non-profit status. That could be documentation online. It's all good, if the charity is good.

Saint Peter, Minnesota

A typical Gustavus coed first thing in the morning. Okay, it's actually Ecstasy by Maxfield Parrish (a personal favorite), but the real St. Peter merits your attention too.

Saint Peter is situated on the Minnesota River just ten minutes north of Mankato and an hour south of the Twin Cities. In 1857 Saint Peter was slated to become the capitol of Minnesota because of its centralized location and river access, but the effort was undone by a bit of thievery, drinking, and card playing, and the capitol remained in Saint Paul.

Over ten thousand people call Saint Peter home, and oddly enough they seem to have gotten used to the idea of the river running north. After living for many years in Minneapolis, it took me a while to get my head around that little geographic anomaly, and I'm not sure I'm over it yet.

Saint Peter is the home of Gustavus Adolphus College, among the most highly respected liberal arts colleges in the state and acclaimed internationally as well. Every year Gustavus hosts the Nobel Conference, a major get-together of the intellectual glitterati. This year the Conference addressed issues surrounding global warming and energy use. Timely and important.

There has been talk of a Wal-Mart moving to town, and the resultant conversation has been typical of a small town faced with the advance of the retail behemoth: is it better to let them build in the hope that the Wal-Mart name will bring more traffic to town and help to rejuvenate the downtown shopping area, or is it better to keep them away, fearing they will hasten the decline of small businesses currently operating in town? The jury's not in yet.

Good schools, good parks, good festivals and good neighbors add up to the good life here in St. Peter. If you like the idea of a smaller town with enough people and economic clout to make things interesting, you should take a look around. Call me for a tour.

Saint Peter Real Estate

Saint Peter homes for sale vary greatly in age, style, price, and even location. The oldest homes can be some of the most interesting, of course, and will vary in price depending on condition. Saint Peter has long filled up the space between the river and the river valley, and can only expand on top of the hill or northward in the river valley, and both those areas continue to host new Saint Peter homes.

On the north side of town there is much activity: the recently completed Saint Peter Hospital is surrounded by a lot of new home-building. There is also a new Mankato Clinic facility north of town, and the Wal-Mart, if it goes in, will almost certainly be on the north side. Most business enterprises of one kind or another will likely stay in the valley because of the proximity to Hwy. 169, which leaves the hilltop to residential builders. There are, however, many new Saint Peter homes on the north side still in the valley, and many lots to choose from should you like to build there.

Hilltop Saint Peter, if you want to call it that, is mainly residential. The big exception is Gustavus Adolphus College, but there is some commercial or church use of the land as well. Otherwise, many new Saint Peter homes have gone up on the hill, mostly to the south and southwest of Gustavus, but to the north of campus as well.

There is not much to choose from for under $100,000, but most Saint Peter homes are now listed for under $200,000. Those significantly above $200,000 will usually be above the valley, often with a nice view, and can be located several miles north or south of the city proper and still be called Saint Peter.

Official St. Peter website. Click here.

Search for Saint Peter homes!

A classic Lower North home

North Mankato

North Mankato is comprised of two parts: Lower North, the oldest part of town and closest to the Minnesota River, and Upper North, which came about when the town began to expand upwards beyond the river valley walls.

Lower North Mankato: old, wonderful neighborhoods, tree-lined streets, and a sense of self unique to the Mankato area. Lots of parks, a new library, and a staple of the summer season: the North Mankato Fun Days Parade!

Upper North Mankato: Historically one new development after another with very little retail mixed in, Upper North continues to expand northward and westward. Some of the most beautiful executive homes in the Mankato area are located here. Home of the Taylor Corporporations, the largest employer in the area, Upper North plays an important part in the region's economy.

Official North Mankato website. Click here.

Search for North Mankato homes!