All Blog Entries by Dean Foerster

Found 4 blog entries published by Dean Foerster.

I often run into people that think they can save money by going to a model home and not bringing their agent. There are no absolutes in real estate but for the most part, this is a fallacy.  Most builders budget for a high percentage of sales to come from people represented by Realtors.  Builders try not to lower pricing as it will have a negative impact on future sale prices.  Builders will sometimes negotiate a higher commission for their own sales agent working the model home if the buyer comes in without an agent.  In this scenario the buyer receives no financial incentive, only the builder and sales agent.  However the buyer now has given up the opportunity to have professional representation.  If a disagreement ensues during the construction

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I often get asked what home warranty comes with a new home.  In Minnesota the state law (also referred to as statutory law) requires a 1,2, and 10 year warranty. The 1 year of the warranty is the time period in which the builder must warranty for general workmanship, the 2 year part of the warranty refers to mechanicals (Heating and cooling, plumbing, and electrical) and the 10 year part of the warranty covers structural deficiencies. The builder will provide thresholds by which a potential issue is deemed to be a deficiency so be sure to ask for those guidelines when purchasing a new home.  Appliances generally carry their own warranties and are covered by the manufacturer so be sure to register for the appliance warranties when you move in.  Also

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About 8 years ago I was touring an older home in Minnetonka on a large lot and I questioned the Realtor on the high price point.  His response was that the home was large enough to separate and there was a second lot behind it.  The value he had placed on the second lot was extremely high.  He mentioned that he is also an appraiser and he went back several years to find the last sold lot in Minnetonka (that would have put those sales in a time period before the Great Recession). I explained that the neighborhood did not have any lot sales at the time but there were several tear downs nearby. He responded that according to the appraiser's guide, you have to adjust $40,000 for the cost to tear down a home.  Since then I have torn down two homes and I'm not

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I often get asked the question, "What brand of windows are these." As consumers we are trained to recognize brand names.  When it comes to windows a better question would be, "What brand and model of vinyl windows are these."  This is an important question because manufacturers often have different levels of windows that they offer.  For example, Anderson has a 400 series that is a higher end window.  They also offer a 100 series and a Silver Line series that are generally considered commercial or builder grade windows.  So when looking at a new home, ask what make and model of windows they offer, write it down and then try the windows. Are they installed properly?  Do they open and close easily?  If the weather is real hot or cold outside, put your hand

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