Viking Magazine - June 2022 - 11

" I don't make any predictions. Back
in 2005, everyone was saying the
market was just going to keep going up
and up-even the National Association
of Realtors' economists were on board
with that, " says Minnesota real estate
agent Tom Ott, comparing today's
housing market with the market he
experienced in 2005, which, of course,
ended up crashing in 2008. " Nobody
knows the future, but if life remains
relatively the same, my opinion is that
[the current housing market] is going
to be here for an extended period of
time. "
Low inventory is one of the driving
factors behind today's American
housing market. In an NAR report
from last year, the organization stated
that, because of an underproduction
of new construction and the
destruction of existing homes, there
is a demand-supply gap of 6.8 million
housing units-a gap that could take
decades to close.
In turn, homebuyers are doing
whatever they can to stand out from
the competition, including making
offers-often much higher than asking
prices-sight-unseen and waiving
inspections. Agents are helping their
buyers sweeten the deal for sellers with
non-refundable earnest money-where
the seller gets to keep the money
whether or not the deal gets to the
closing table-and paying in cash.
" I don't know how you can get any
better than cash, " says Ott, noting that
a quarter of the nation is bargaining
with all-cash offers. " Sometimes my
clients will find a friend or family
member who has access to cash to close
the deal, and then the homeowners
will refinance i to a loan so they can
immediately pay the cash back. "
No matter if you plan to purchase
a renovated condo in the city or a
new build in the suburbs, pay with
all cash or secure a loan, the team
you choose to work with is crucial to
landing your next home. This includes
an experienced, credible agent who is
a smart negotiator, as well as a local
@sonsofnorway
lender, which, Ott says, carries more
weight than getting a preapproval
from an online lender. You also need
to be realistic about and prepare for
the market you're getting into.
" I prepare a pre-market analysis
SNAPSHOT
for my buyers before we even look
at a house, and I let them know
what the market is like and what I
think might be a possible outcome
so they can decide for themselves
whether or not they want to see it
and get involved, " says Ott, who
is consistently seeing multipleoffer
situations and minimal days
on the market, as opposed to the
sometimes years it used to take an
American home to sell.
But the most important piece of
advice from Ott, who has been a
real estate agent for 39 years, is not
to settle for a house simply because
of the price. " I tell all of my buyers
from the get-go, the price is kind
of temporary, " he says. " If I got you
a good deal, but it wasn't the right
house, how much would I have to
pay you every month to live in the
wrong house? Everyone wants a
deal, but it's more important to get
the right house. " ▼
EXISTING
U.S. HOMES
SALES BY
PRICE RANGE
43%: $250K-$500K
16.8%: $500K-$750K
5.9%: $750K-$1M
6%: $1M+
5.2%: $0-$100K
23.1%: $100K-$250K
SOURCE: NATIONAL ASSOCIATION OF
REALTORS, EXISTING HOME SALE STATISTICS,
FEBRUARY 2022
CREATIVE FINANCING
For many aspiring U.S. homebuyers, scraping together
enough cash for closing is a big hurdle to homeownership.
Aside from traditional savings or monetary gifts from
friends and family, there is an alternative to assist with
your down payment: a life insurance policy. If you or a loved one has a permanent
policy with a cash value, it can be borrowed against to fund purchases, like a house.
There is no time limit for paying back the loan against your policy, and if you choose
not to pay it back at all, the death benefit is simply reduced. Talk to your Sons of
Norway insurance professional if you have questions about using the cash value of
your life insurance to help achieve homeownership.
Sons of Norway, 1455 West Lake Street, Minneapolis, MN, offers financial products, but not all
products are available in all states. Products issued by Sons of Norway are available to applicants who
meet membership, insurability and residency requirements.
June 2022
11

Viking Magazine - June 2022

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