User uShare Login | Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.

54° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options



Share your Photos, Videos, and Stories on uShare! Click here to get started. | Sioux Falls News & Weather, South Dakota News & Weather, Minnesota and Iowa News

[0] My Saved Articles
Find local businesses
on the KELO Pages!


Home Selling Trend

September 6, 2011, 10:12 PM by Angela Kennecke

Home Selling Trend
Before the housing bubble burst, selling and buying homes seemed nearly effortless. People weren't afraid to go out and find a new home before theirs sold. And if theirs didn't, there was always a bridge loan. But people are more cautious than ever when it comes to making an offer on a new home

The road to home ownership has been a crooked one for Joanne and Levi Tvedt. The new parents of twins are about to move into their second home, but it's taken them two years to get there.

"We just didn't want that burden of two mortgages and being that further in debt. We just wanted to play it safe," Joanne said.

And the Tvedts are very happy they did. They decided to move to Sioux Falls from Rochester, Minnesota, two years ago to be closer to relatives. They put their home on the market in the worst real estate climate possible.

"It's stressful. You write a mortgage check every month for a home you never get to be in and you pay rent. It's stressful," Joanne said.

"It was an uncomfortable feeling for a little while, making that payment for who knows how long; there's no end in sight really. We were worried, but we figured Rochester had a good enough market that eventually it would sell," Levi said.

It took a little more than a year, but the Tvedts did finally sell their home at a loss.

After two years of renting, the Twedts finally recovered enough economically from the loss they took on their house in Rochester to begin looking in Sioux Falls.

"I always tell my buyers get rid of house A before you buy house B if that's going to make the process more fun and more comfortable for you," realtor Gretchen Shafer said.

Shafer says when she started in the industry five years ago, it was common-place for buyers to rely on bridge loans if they ended up owning two homes at once: one they were trying to sell and the one they were buying.

"You'd run into more people willing to do a bridge loan or confident that 'if I sell my house in a month, I'll be fine'. Now you see a little more hesitant because, is it going to sit for a month or two years? How long am I going to be sitting with house A until I get to B," Shafer said.

While bridge loans are still available, with stricter lending standards, they can be more difficult to get.

"Before, we were willing to take more of a chance on the house. But most banks have cut back their maximum loan to values," Cortrust Mortgage Banker Dave Kelly said.

Even if the Tvedts could have qualified for a bridge loan, they're glad they didn't consider it.

"I think you're going to see less people willing to take a risk because you don't know what's going to happen a year or two years down the road. And a house is a commitment, a long-term commitment," Levi said.

"Trying not to get in over your head is a smart choice," Joanne said.

The Tvedts are now closing on their "second" home in a few days and they can't wait for their growing family to move in.

"Very anxious; we're ready to expand our living area and get in a neighborhood again," Levi said.

"We're excited to have the room and a yard and just the things a home brings to a family," Joanne said.

Realtors say the Sioux Falls housing market is good, much better than the rest of the nation, but it will take awhile before buyers and sellers get their confidence back everywhere.

Previous Story

Next Story


Find Local Businesses on KELO Pages!

You may also like

Jesus Take The Wheel

9/25/2014 10:00 PM

Miracle on the highway: that's how many people are describing a bad crash between a semi-truck and car in which no one was killed.

Full Story | Watch
Autistic Student Gets Royal Treatment

9/26/2014 4:55 PM

Friday night's homecoming at Brandon Valley High School is a crowning achievement for a senior who's living with autism.

Full Story | Watch
Iowa Teen Dies Two Days After Fight At School

9/28/2014 11:42 AM

Prosecutors may file additional charges because a western Iowa teen died two days after suffering a head injury during a fight at school.

Full Story
Brandon Woman Seriously Hurt In I-229 Crash

9/30/2014 5:00 PM

Two people are hurt, one seriously, after a chain-reaction crash in eastern Sioux Falls involving a semi-truck and four other vehicles.

Full Story | Watch
Police: Missing Boy Shows Up At School

9/26/2014 6:39 AM

Sioux Falls police say a missing boy showed up for school Friday morning.  

Full Story