Scott's Blog Comments on Real Estate In Treasure Valley, Idaho

We are in the middle of the summer home shopping season. Many first time buyers are taking advantage of the $8000 tax credit to purchase their homes. Low interest rates continue to help people find affordable homes. The Treasure Valley area, Boise, Meridian,  Nampa and other  cities have hundreds of homes that have dropped in prices the past 60 days.

Inventory depending on the price range remains high. Unfortunately people continue to lose their homes and jobs are often tough to come by. The short sale process for many people continues to be a long and  painful one as many banks are so far behind that 5 months until a
decision is reached is very common.

Foreclosed homes (REO) are still a hot commodity and in our area we have several hundred bank owned homes whereby the decision remains 3-5 business days making these homes very attractive to both soon to be homeowners and investors.

In the Nampa/Caldwell area we are helping many people find homes for less than $90,000. It's a bit tougher to find these priced homes in Boise and Meridian but under $120,000 is very possible. 

Certain price ranges such as those homes under $140,000 in Boise and Meridian continue to move pretty quickly especially if found in a very popular location.

Some buyers are waiting and missing out on their homes when they finally do decide to  purchase. We have seen some homes increase in price which is a good sign for a few homeowners. However there's still a lot of inventory out there to get through and we can help you see these homes by setting up automatic email.

Here's an inventory snapshot as of June 9th:

Boise 3bd, 2ba homes up to $150,000 250 homes for sale
Nampa 3bd, 2ba up to $150,000 approximately 591 homes
Meridian 3bd, 2ba up to $150,000 approximately 185 homes
Caldwell 3bd, 2ba up to $150,000 approximately 405 homes for sale.

Bank owned homes up to $300,000 in Ada County = 149 homes.
While in Canyon County there are 192 bank owned homes in the same price range.

One perplexing thing is that when you compare the Treasure Valley area with say Merced, California the #4 ranked city for foreclosures(RealtyTrac reported) the number of foreclosures is overwhelming. We spoke with agents in the Merced area and  as of last week there were only 45 bank owned listings up to $300,000. How can Merced
be ranked so high with such little inventory of bank owned homes? Some agents feel that the banks are holding back on releasing these foreclosed homes for sale so that they can better control the market. I'm not sure what to think but I do know that in the Treasure Valley area with hundreds of homes to choose from buyers are finding
affordable options without the long short sale wait.

There's still a belief that a bank owned home can be purchased far below the bank's asking price. In reviewing the actual purchase price of REOs at asking price or within 10% of the asking is the reality. We worked with many buyers in the past that found this out the hard way after missing out several times on homes they bonded with due to higher offers. 

Many buyers are taking their time but if you find a great home in the location you'd like to live our suggestion is to move quickly for we are seeing many homes selling fast, especially when priced below other homes.  Depending on the location some prices are actually starting to rise a bit and those affordable homes in desirable subdivisions that
become bank owned homes are moving so fast so making a great offer is key.

As always have us run comparables and a property history to help. We are ready to put you in touch with local lenders that are very down to earth, straightforward and centered around helping and guiding you through the lending process.

We are here for you so call us today whether you are looking to purchase a home or investment property or hoping to sell your home in today's market.

The real estate industry is so challenging and frankly my stomach is in knots most of the time. We see so many people who have been hurt the past few years and even more so in the past few months. Some are losing their homes, others their jobs and usually their credit too as a result of these losses. Many people are scrambling to start a new life.

It’s hard to know just who to trust. In this industry there are so many gimmicks that turn out to be scams. Many “Let us rescue you” vendors turn out to be nothing more than let us attempt to make money off of your misfortune and if we can’t then oh well you’re the one getting screwed over not us. I feel such shame when I see all the crooks that are coming out of the woodwork to try and make money off of people that are already in trouble. Some may say well that’s the result of free enterprise but hurting people through deception or holding back the truth is wrong and we hope to see these individuals pay a steep price for their actions.

Recently one of the many mortgage scams out there impacted a couple in the Treasure Valley area. A company called National Foreclosure Relief was involved and it’s very telling on how the lack full disclosure and the ramifications will impact the sellers greatly.

See the story here. http://www.idahostatesman.com/business/story/744364.html

As you drive around the area you’ll find countless signs about avoiding foreclosures. We have published past blogs with links to help you before you turn to this style of companies.

As a seller it’s best to keep the deed in your name at all times. Stay protected and make sure you have an attorney review all documents before signing for any representation that makes promises. Understand the ramifications and explore all options available.

For buyers out there looking for great priced foreclosed or short sale homes often they are in for a long journey especially with short sales as many of the homes being purchased have these 3^rd party companies involved. Often how many liens and parties involved in the transaction are not disclosed causing delays and sometimes preventing the home purchase.

Buyers currently renting a home but planning on purchasing may want to consider delaying their exit from a rental agreement until their new home has closed. We realize this may present an extra month of rent due, however the alternative of being forced out and finding a new place to stay (with family, friends or in a hotel) could be more costly. Remember moving once is a stressful event but moving your personal belongings twice is just heartache!

The short sale process is a long one. What buyers think maybe 2 or 3 months can and does turn out to be 4 months or longer. Also remember the 3^rd party lenders that must approve of the short sale (accepting less than what the owner currently owes) could still reject the offer, counter the offer or decide to take the home at auction and re-list the property down the road.

Tami and I protect our clients the best we can. We explain the process but there seems to be curves often thrown in from the listing brokerage by way of the 3^rd party lenders or rescue companies involved that lead to additional delays and cause frustration and hurt.

Sometimes it’s difficult to see who is on the side of clients. One other area we are seeing many get hurt is the rent to own market or what we see as one of the biggest gimmicks out there right now. Most rent to owns are structured to take the potential buyers money knowing full well that the chances of the renter buying in 1 year from now are very slim. The contracts on these homes usually have non-refundable down payments and built in clauses that could lead to eviction coupled with the loss of money that could have been used for down payment on a future home.

In today’s market why anyone with good credit scores and acceptable debt to income ratios would rent long term is puzzling. The $8000 first time homebuyer credit can now be used for the down payment on the home. Talking with a local lender who understands the market and programs will explain how this works.

People need and want shelter but often overlook all the potential pitfalls in selecting a company or individuals to help them. Whether it be purchasing a new home or trying to move on by selling their current one people are still getting hurt and today with more frequency and in many ways.

Explore all possibilities and adhere to the saying that if it’s too good to be true then it probably is. We are here for people looking for options and wanting to know more about the Treasure Valley real estate market. We would be honored to represent during through any transition of your life.

It’s a really fun time right now. There’s new hope in the air. In reading articles many economists feel that the recession will end this year. We hope this is true but there are a few great things we do know as of today. Prices in many cities have dropped so much the past 18 months where affordable homes are out there and selling pretty quickly. Interest rates remain very low and with up to $8000 tax credit for first time homebuyers there’s great incentive for homebuyers to find their dream home.

Spring is a great time in the Treasure Valley area. We may have seen the last of the 40 degrees days. Yesterday was in the 60’s and today may be in the 70’s. There are so many parks, trails, biking areas, camping grounds and a host of outdoor activities to enjoy. Soon water parks will open and we will be having a blast with our kids. There’s a sense of optimism in the air and hey isn’t that better than the doom and gloom that the media reports daily. I’ve just about given up on the news and I’m happier for it. Of course we need to stay informed on real estate, which we do. Hopefully the links on the site, the news wire feeds and this blog have helped people in some way.

We’ve shared experiences with short sales, informed on the foreclosure mess, discussed the mortgage fraud scams that are still going strong and relayed information to keep buyers and sellers informed. If you look at the blog archives the past 2 years you’ll find topics ranging from “It’s The Little Things That Count” published on March 29^th, 2007 to “Setting Client’s Expectations Just One Part of Great Customer Service” on April 10^th, 2007. All the past blog entries are informative and will help in some way. We encourage readers to explore the topics and learn as much as possible about the real estate process.

Being informed and educated before buying a home is very important. Having people you can trust to guide you through the process is equally important. We want to be those agents!

Often we receive emails or calls about rent to own, lease purchases and other challenging real estate related topics. We have experience in all of these areas and try our best to relay the information that will help and provide insight. Just this morning there was a story on CBS that serves as a warning for both sellers trying to avoid foreclosure and for buyers considering the rent and lease options.

Watch the story here

Challenges for people selling homes include:

1) Pricing the home properly and competing against short sale and foreclosed homes in the market

2) Finding a buyer for your home

3) Presenting your home to sell today and not 120 plus days with various changes along the way including different listing brokerages and several price reductions

4) Volume of active listings remain high: Explore alternative such as renting or refinancing instead of listing your home

Challenges in finding a home include:

1) Becoming and staying approved through a mortgage lender

2) Understanding the difference between an owner selling their home with no mortgage related issues, bank owned properties, HUD and/or Homesteps properties and homes that are subject to a short sale.

3) Being ready to make an offer when you find the home you want at the price it should be when reviewing the comparables.

4) Some homes are moving quickly and despite the active status may not be available (have us confirm availability on any home you find).

5) Making low ball offers reduces your chances of getting the home you want.

We review the entire process and help set expectations for today’s market. A few helpful things we have on the site to help you face challenges include a checklist, overview of process, these blog entries, news features and many links to discover and review real estate. We also have a new guide available by email once you start the process.

We represent you throughout the process with no hidden fees, no retainer or contract costs. Any commissions due for services rendered will come from the listing brokerage and/or through the seller. Our commitment to you is to provide the best possible customer service while setting expectations, reviewing property history and the comparables, negotiating contracts, providing conflict resolution and making sure your needs always come first!

Contact us by email or phone with any questions or concerns. We would be honored to represent you as your agents.

Launch of Affordable Idaho Homes Web Site

Boise, ID, March 19, 2009: Scott Messing and Tami Merriam Real Estate Agents with ERA West Wind announced today the launch of several new web site domain names, including www.AffordableIdahoHomes.com, all under the banner site of www.TreasureValleyHouses.com geared at helping and presenting affordable homes to potential home buyers looking to purchase in the Treasure Valley area (Boise, Caldwell, Eagle, Kuna, Meridian, Nampa and Star). “These sites will be geared towards showing that our area has very affordable homes, even as low as in the $60,000 price range,” said Scott Messing. “People need to know that it’s a great time to purchase a home and that with low interest rates, the $8000 first time homebuyer credit, and a variety of lending options out there, it really is a good time to live out the dream of home ownership for many that have been either nervous to buy or for those thinking there’s no way that they can afford a home.”

“The truth is most of the time owning a home costs less than renting, and with rent you can’t take advantage of all the tax benefits, privacy, or freedom.”

Tami Merriam adds that “There are also many programs available for lower income earners and we work with some great local lenders that can review these programs and advise people on what to do next.”

“Signing up for automatic email is a great first step in viewing homes. This allows you to automatically see the homes the same day they are listed instead of constantly searching each day or every few hours,” Messing said.

Many of these affordable homes are either subject to a short sale or they are foreclosed homes and they tend to go fast. Short sales occur when the home is worth less than what the owner(s) currently owe on their outstanding mortgage(s). Past blog entries on the site explain more about short sales and foreclosed homes.

The new sites will be geared towards helping people view affordable homes in all price ranges, but they offer much more than that. “The sites also provides a wealth of information--ranging from news articles to blog entries--on what’s going on with real estate in the Treasure Valley area,” said Tami Merriam.

-End-

I posted this under Buyer's Alert but also felt the need to post this as a blog too for several of my clients have been missing out on some homes they truly wanted and it's a trend I feel will continue in our area. Tami and I have seen this scenario over and over again especially in February and now into March.

Buyers watch out for there are many other buyers and investors that are still out there and snapping up some great bargain priced homes causing much frustration for many that were hoping to have their dream home.

For many news watchers the media tells stories of buyer’s purchasing homes for so much less than the asking price. Buyers decide that based on these stories in the Treasure Valley area they can do the same. However this is simply not happening over here right now. Price reductions of 10k, 20k and higher usually occur on the higher priced homes such as those found in the $200,000 price range. Also depending on location sometimes the homes go for higher than their asking price.

We work with many clients shopping for homes in the $70,000 to $140,000 price range. I must have shown about 50 homes in the past 3 days to several clients.

When I run the comparables all of these homes they almost always turn out to be one of the best priced homes in their respective areas and sometimes in the entire city of Boise, Meridian, Nampa and Caldwell.

One home that was sitting 120 days plus was price reduced from $130,000 to $122,000 and it received multiple offers within 2 days of the price reduction. Another home being watched by several of our clients and I'm sure by others was just reduced from $142,899 to $119,999 and the agent’s phone has not stopped ringing the past day. This home will be sold in the next 2 business days while potential buyers scramble to view the home and to justify why they should offer even less than the asking price. One problem is that despite TLC or any repairs that this home or other best priced homes you may encounter need the price already reflects this and many buyers/investors know this and offer full price or higher for the home.

Another thing is that investors are still paying cash for these types of bargains. I’ve seen 3 homes go pending in the past day all under $130,000 in Boise and it wouldn’t surprise me if 2 or all 3 go for cash from an investor.

Solution:

Buyers must be prepared not only to see the home the same day that it is price reduced but prepared by having a pre-approval letter from a lender in their hands and also sent to their agent.

A quick check list for these types of homes include:

1) Be available and call your real estate agent right away to show the home the same day, within hours if possible.

2) Have your agent call the listing agent and inquire by asking the right questions on the home such as making sure it will qualify for the lending you need. (FHA, VA, etc.) An agent in the know will ask the right questions and save you time and frustration.

3) Make sure you have the earnest money available whereby a check can be issued typically for 1% of the purchase price (this is negotiable talk with your agent)

4) Be ready to offer list price and maybe even higher if you need help with prepaid and closing costs (this can be rolled into a higher price whereby seller sees this as no concession thereby increasing your chances of an accepted offer).

5) Make sure your agent shows you the comparables for the home

6) Feel good about the monthly payment (obtain good faith estimate from your lender to include property taxes and hazard insurance that goes into your escrow account)

7) Write the offer today! Don’t delay for other offers are headed to the agent as your considering what to do on the home. We’ve seen it happen time and time again especially when a home becomes one of the top 5 priced homes in the area.

Look for further articles, blog entries and stories from us on this subject. Contact us by email or phone with any concerns, questions or advice. We would be honored to represent you as your real estate agents through out the process!

Potential homeowners have been sitting for a while now waiting for signs that say “Now Is The Time To Buy.” Is it a good time to purchase a home? remains one the most popular questions we hear.

The answer is that it depends on the price range and your own particular situation. However this year with the new $8000 tax incentive for first time buyers that is not a loan but a true credit, as long as you don’t re-sell the home in the next 3 years, combined with the low interest rates and a market that in some price ranges has held steady the answer is now yes.

So where do you start with shopping for your new dream home?

Our site contains the Multiple Listing Service where you can key in any price range, any city and specify the features you’d like to see in a home from the number of bedrooms and baths to the square footage, yard size, # of garages and extra amenities such as fireplace, granite kitchen counter tops and more. There’s never any registration information needed to view all the homes either from the land or from the sky with satellite views. Here’s the link to start this search now.

There’s a great overview of the process and check list to help guide you through the entire process located here.

What is the first step before we even start looking for a home or invest time and gas in driving by all the homes in the various neighborhoods where we might want to live?

Contacting a lender and making sure you are not only pre-approved for a mortgage but that you feel very comfortable with the monthly mortgage payments is #1.

We’ve seen many people start out driving around and spending hours each weekend entering homes only to find out that they are 6 months, a year or longer away from purchasing their dream home.

A good lender will not only advise you on the types of programs out there but will also guide you through the process, helping correct information and showing you what must be done to obtain an approval. There are many lenders that won’t do the little extra things that we feel is a MUST to help you. We work with some amazing local lenders that will provide assistance, guidance and make sure that you understand all the costs involved in obtaining a loan. We would be happy to refer you their way. Remember, there’s no charges to talk with lenders and have them pre-approve you. Sometimes clients are scared of what may be found but it’s better to know up front what you must correct or do to obtain that mortgage.

Once you have a pre-approval from a lender then start your search online, in person by doing drive-bys, by entering open homes, by interviewing agents to find out what type of service they offer and who you trust to protect your best interests. We would love to be those agents! We also hope you will continue to use our site to obtain the wealth of information that’s out there.

Short Sales and Foreclosures dominate certain price ranges:

Our area like most out there has many short sale and foreclosed homes. We’ve issued several warnings on these homes for it’s not so easy to understand the process. You need to know what questions to ask for short sales and foreclosed properties. Frustration sits in when buyers don’t understand the process or don’t want to listen to what may occur. We set expectations based on the situation and help you through the process.

Short sales can and do take a long time. They are also not always the best deals out there. We show our clients the comparables, property history and ask several key questions such as:

• How many liens are against the property?
• Has a short sale packet been completed?
• Has a negotiator been assigned?
• Does the listing brokerage have direct access to the short sale negotiator?
• Is the bank local or national?
• Has a BPO, appraisal and all other documents been completed by the lenders involved?
• Where do you stand in the short sale process (meaning is there actual approvals)?

These are just a few of the questions to ask about short sales. If the agent can’t provide these answers or if the answers seem to be "not yet" or "we are working on it" then you can probably expect a long waiting period. The great news is that in Idaho you can cancel any short sale in writing before you have all the lender approvals without penalty.

Short Sales and Foreclosed (Bank/Corporate Owned) properties are priced usually at the lowest end of the pricing spectrum.

They are priced to move the home based in part on the conditions of the homes. Many people try to obtain these homes at 20% lower only to be outbid or rejected. Remember these homes are priced aggressively. That said we have managed to negotiate several thousand off the price but if you find your dream home and it’s a foreclosed or short sale home consider all options when making your offer for if you go too low you will probably lose the home. It may not matter if you were just looking for an incredible deal but if you have an emotional attachment where the home has that special something you love then think twice before making a lower offer.

Location and condition determine pricing and many homes in certain locations have retained most of their value. I know the news makes most think that all homes have lost so much but that’s not the case. Seeing actual comparables will show you what’s going on.

Contact us by email or by phone to discuss anything you may need to start your wonderful and fun purchase of a home. Use our site and hopefully our services. For us it’s about helping people and you’re needs are always the focus. We would be honored to represent you throughout the real estate process!

I’ve been thinking a lot of about this topic lately. With the economy in turmoil and the new report released today showing the unemployment rate is at 7.6% it’s never hit home more. Where is the loyalty? The loyalty from the companies toward the employees that have put in many years of service only to see their jobs shipped overseas the past few years or now to watch hundreds or thousands of jobs being cut. Meanwhile the executives and the board of directors often keep their 6 figure salaries. We call this the free market so does that mean loyalty counts for nothing?

The loyalty of hard working people that have invested hours, days or weeks into helping others yet find themselves in the unemployment line, behind in their mortgage payments, and their homes are now subject to short sales or worst they’ve already foreclosed.

Everyone has an opinion on what should be done. The stimulus package continues to increase and while I’m not going to pretend I know a lot about economics I do know that $500 or even $1000 back to every individual is a flat out joke. This part of the package needs to be steeper. Most people are so afraid of losing their jobs and their homes that they will simply take the money and save it or perhaps put it towards bills that they are already late on. The one thing almost everyone agrees on is that it’s time for something to be done to not only create jobs but to save jobs and save homes. I know that the package has incentives there for these companies and I’m really hoping that it works.

Perhaps there needs to be major tax cuts to the point where thousands of dollars are going back to people to really make a difference? How about a nice hefty mortgage interest rate adjustment on all people in danger of losing their homes even if they don’t have the equity there, which many people don’t? We have received many calls about refinancing and since we are real estate agents and not mortgage lenders we usually refer people to a few local lenders we know.

In real estate loyalty is perhaps the hardest thing to find from clients nowadays. In the seller’s case sometimes we are contacted to sell the home and so we meet with a client, listen to their situation and provide them with the best comparables possible. Often depending on a seller’s situation with their equity and mortgage we say that now is not a great time to sell. Those are hard words to hear but it’s better than sugar coating it and taking a home listing that is going to sit for months possibly causing more harm in the end as the seller and their agent chase the market. Sellers sometimes don’t believe us and find another agent that will buy the listing (tell the sellers what they want to hear just to obtain the listing) and so the home sits price reduction after price reduction. It’s the cause of such frustration for the homeowner and the agents that interviewed but lost the listing.

With buyers sometimes as agents we spend many hours doing research for clients, showing homes, explaining the process, negotiating the offers and more only to have them disappear without a trace. Perhaps it’s cold feet on the buyer’s part as it’s the largest purchase usually made. Here’s where a bit of honesty and talking things through could help all around. As agents we are dedicated and loyal to our clients. Our time spent with a client never ends, at least not for Tami and I. We are there for our clients not just as agents but also often as friends well beyond the completion of the home sale or purchase. Our #1 goal is to help and to protect people and so that’s why it hits hard to see any client lose a home or simply to have them disappear.

Loyalty is what we ask for first and foremost. We provide excellent services and do our best to keep clients informed all around. Is it better to be honest even if that honesty is not what someone wants to hear? Absolutely 100% of the time. There are ways to work things through and with loyalty you can be sure that we would never give up on our clients and that we hope our clients would never give up on us.

Loyalty is hard to find nowadays and like trust or honesty it must be earned. We know people considering a purchase of a home today. They ask us is it really an ok time to purchase? When you look at the prices today of affordable homes (some cases under $120,000) coupled with low interest rates the answer is usually yes. However taking your time in making sure it’s a purchase that’s right for you, making sure that the monthly payment is right for you and that whomever you end up working with has your best interest at heart that’s what’s really important.

There are many options out there. There are also many gimmicks and/or scams to be cautious over. Sometimes people go from place to place looking for that best deal or that something “special” in the market place. To some loyalty is not important and in the end they may find themselves upside down or worst they may lose of a lot of their money in what they thought was a great deal. Whether you’re looking for great deals on move-in ready foreclosed homes (we recently helped two of our clients find some of the best deals in all of Caldwell the past 6 months) or needing an agent to guide you throughout the process and beyond we are here. What we ask for in return if your loyalty.

We ask to be the agents that you consider when making that next purchase. Loyalty works both ways and we will work hard to earn your loyalty. Just know that you have ours from the start!

Welcome to the first blog entry in what we hope will become many in a series we are calling "The Alphabet Resources."

We are starting with probably the most meaningful and yet difficult word to hear for both buyers and sellers as we review honesty and beyond.

The letter H is meaningful in so many ways. It’s the first letter in HOME a place for sharing, bonding, entertaining, comforting, and growing, relaxing and in most cases taking advantage of the American dream. For many in the process of losing their home it’s been a struggle to try and retain the dream. Whether it’s due to the economy, mortgage related interest rates, an illness or a number of other reasons losing a home is devastating. Often working with lenders before getting behind in payments or taking advantage of the new government programs can lead to a rescue. When buyers are not able to save their homes they often enter the world of short sales before the home becomes foreclosed. Short sales occur when owners owe more than what their home can be sold for and when they see if the lender(s) will absorb the loss allowing them to move on. Depending on the price range and location sometimes up to 80% of the homes fit into this category.

Foreclosures and stopping foreclosures have become big business for hundreds of 3^rd party sources. Charging fees and sometimes running what amounts to scams they’ve come out of the woodwork. You’ve seen ads left and right, signs on the corners promoting the stopping of a foreclosure. The question to ask as we look at honesty is are these companies really paying and promoting to represent your best interests?

The answer to this question is usually and unfortunately no. Many are profiting from a seller’s loss. There are now companies that are even negotiating directly with the lenders to take control of your mortgage situation, to buy the property first or to bring the late payments up to date and then to short sell the property at a profit. Perhaps it can save a seller but how honest is the process and what about the hidden repercussions to the seller’s credit and future ability to purchase a home. H is for honesty and this process is a direct threat to the word.

If you’re facing foreclosure or about to be behind in your monthly mortgage payments please talk first to your lender and also review the information at the U.S Department of Housing and Urban Development’s web site by clicking here.

H is for honesty no matter what market we find ourselves in and no matter what the situation we encounter. Honesty is taken for granted in many situations such as when we enter a bank for a transaction. Most trust that the transaction of exchanging, withdrawing or depositing money will occur without problem. Or perhaps when you enter a school for learning or a hospital for care there’s a great deal of trust in the word honesty that all will be handled and information will be relayed in a honest, straightforward way.

In real estate honesty is something that must be earned! Real estate is the largest transaction for most and it’s an industry that for licensed real estate agents is regulated and overseen by local, state and national agencies such as in our case the Ada County Association of Realtors, Idaho Real Estate Commission and the National Association of Realtors. Yet despite a code of ethics, regulations, continuing education and a formal way for anyone to issue a complaint against an agent or a 3^rd party there’s this lack of trust and honesty.

For us it’s the case of a few bad apples that operate in a less than honest way. There are a few people taking advantage of others and therefore we fight harder to earn a customer or a client’s trust. It's through honesty that we can educate and help people but it can also drive people away especially in cases where they don't want to hear the answer. Telling a homeowner that their home is worth $40,000 less than what they must have while honest and based on real comparables is something the homeowner often refuses to hear. Unfortunately many homeowners select to go with an agent that will buy the listing (tell the homeowner what they want to hear at any cost to obtain the listing). Often this leads to a short sale situation or even a foreclosed home down the line instead of selling at the lower price or advising the homeowner of resources available to help them save their home.

On the buyer's side setting expectations through honesty such as indicating when it's a short sale that can take 60 days or longer just to hear an approval is not someting the buyer wants to hear, yet it must be said. It’s hard to earn honesty when people often turn a deaf ear to it. The stereotypes we’ve highlighted before are brought into the spot light even more so especially in this crazy market. (See below for a link to past stereoptypes blog entry)

There are pariahs out there in every industry yet real estate is where there’s this gray cloud that continues to hang over. It’s easy to see why honesty remains in question especially with all the gimmicks out there that we face daily.

As real estate agents we fight the common stereotypes and work to earn your trust every day. Honesty goes hand in hand with the services we provide. Often people turn away from honest answers that they don't wish to hear. Sometimes it's a challenge as all it takes is one bad encounter and the owenr or soon to be homeowner believes that everyone in real estate must be dishonest. Yet most of our colleagues are not of this ilk.

Honesty is earned through each and ever encounter and through our actions. For those selling a home today or those purchasing a home in the future finding help from a honest agent, company or 3rd party vendor doesn't have to be this great challenge. Interview people, talk to them and I believe it has to be meeting them face to face so that you see what they are about, read their body language and make sure they will protect your best interests.

Tami and I would love to talk with you about any of your real estate questions or concerns. It's always about helping people first and honesty is an integral part of this every step of the way. We would be honored to represent you throughout the process and beyond!

Related past blog entries on honesty and real estate stereotypes for your review can be found by clicking here.

Other Resource Links:

Idaho Real Estate Commission

Ada County Association of Realtors®

National Association of Realtors®

A very happy new year to all readers and welcome to what is sure to be a wild 2009.

Saying hello to a new year always provides hope and opportunity for a new start, new commitments and new ways of doing things in one’s life. Many people are full of optimism and why not. Just don’t let all the mess that’s out there get in your way.

We are here to help you navigate through the messy world of real estate all with a positive mentality and approach to make it fun and rewarding for you. Even better we are here to help you make sense out of the mess or what may seem like chaos at times to help you organize it.

So where do we start and what should we all look out for in 2009?

In these challenging times of short sales, foreclosures and gimmicks galore it’s important to understand the mess of the market and how to approach these scenarios. Having representation through either a knowledgeable real estate agent(s) and/or a lawyer depending on where you live will certainly help.

From pricing incentives to financing options it’s hard to know what to believe and who to trust.

Here’s a few of the things you may face organized to help you in today’s market:

1) Lease to own or rent to own properties:

Please be careful when responding to advertisements or phone numbers on many signs you see on the corners as you drive around town. Most of the time the offers are too good to be true and there’s usually several catches. Some items to review include:

*How will the deed read

*What if payments are even 1 day late (what happens?)

*If at the end of the lease you decide not to buy what happens to any extra money put down toward your down payment or closing costs

*What is the actual interest rate and will that ever change

*Are you locked into a purchase price or is that subject to change

*Is there a termination/cancellation right on any side (buyer or seller)

Manny people have been hurt in the end by these types of programs and most of the time they result in a non-purchase of the property. Often it’s the investor or owner that prospers, especially during these times. Consult a real estate attorney in reviewing any of these contracts.

2) Getting the best deal but from where?

Many people look for the best deal in a home and why not. There’s a misconception that the best deal is usually from a short sale. Short sales are necessary and usually benefit both the seller and the buyer. They do pass on savings to the buyer but often short sales take 60-120 days to complete causing frustration. At times they are behind the market or trending equal with the market. Say an offer on a short sale home was made 90 days ago and since then other homes have sold for the same price or only slightly higher. In the end the purchase price turns out not to be the amazing deal. We wrote many times about short sales and the frustration they often bring to buyers. We recently closed on a short sale after 125 days but luckily for our clients it was worth it as they found the home they loved.

Currently we are working with a few clients that are also in the middle of a short sale and it too may end up being a great deal but for them it’s about the home itself and not the price.

If you’re looking for some of the best priced homes look into foreclosures which usually are priced less than short sales and can close much quicker, usually 15-30 days. In completing recent research on homes priced up to $150,000 we found that foreclosed homes had the lowest price per square foot.

3) Buying Foreclosure Lists

There are many vendors charging prices to see foreclosed properties that are available for free to view from the Multiple Listing Service. These lists are very popular and used to attract new buyers sometimes with a monthly cost attached. Other times it’s a source of frustration for buyers when they find homes on the list that are out dated, already sold, pending sale or simply don’t reveal how to purchase the home.

We have a search on our site for foreclosures and can also provide you with a weekly list of foreclosed homes. The difference is if you’d like to see any of the homes we will make all the calls for you to verify the current status, take you on a tour to see these homes and represent you throughout the process with no monthly fees or for that matter any costs involved! We would be honored to represent you throughout the process.

4) Selling Your Home At Higher Costs

We’ve seen people throw in the towel so to speak when it comes to navigating through the mess of this housing market. Sometimes homeowners will walk away letting their home go back to the bank instead of contacting the bank for help or trying the short sale route.

Other times we see sellers refuse to lower their prices despite the actual sold comparables and their agent’s advice.

It’s important to be realistic in today’s market. Pricing the home ahead of your competition and in line with comparables help. Staging the home to sell and finding an agent that you can trust and work with also helps. Watch out for promises made that seem too good to be true through special incentives and gimmicks. Read the fine print on any contract you enter into and please interview the agent(s) to make sure they are right for your situation

Also watch out for anyone charging you money up front to market or present your home. Our way of marketing is that we represent your best interests and fully market and present your home to attract buyers. There’s never any up front fees for listing and actively marketing your home. Everything is negotiable and the costs in the end are very reasonable. There are many stereotypes out there that are simply not true! If you’re thinking of listing your home give us a call even if you are going the route of selling the home yourself just to consult for ideas. We want people to sell their homes and move on to the next transition in their lives. Any help we can provide you to meet your goals is always worth it!

This year we expect to see an increase in foreclosures and short sales. With all the bad news coming out on the economy we do remain positive for interest rates are low and there's simply amazing deals out there for soon to be homeowners. Affordable homes from 2bd/1ba 900+ sq ft exist in Boise under $100,000. There are 2000 sq ft 3bd+, 2ba+ homes in the Treasure Valley area for $150,000, some are even less than $125,000. Homes provide a gathering place to share all the future memories. They also provide shelter of course plus have the tax benefits that renting simply doesn't provide. So is it a great time to buy? That depends on who you ask, the price range of the home and for many the location.

Thinking of the song I’ll Be Home For Christmas what exactly does this mean?

Will you be staying in your current home this holiday season? Or will you be searching for your new home for a new start to 2009? Do you currently have your home on the market hoping to upgrade, downgrade or transition your life to a new area?

We realize that economic times have been very tough on everyone. Unfortunately it’s not expected to clear up any time in the immediate future. However there are things you can do to improve your situation and hopefully achieve your goals.

For those with homes currently on the market here are a few tips.

Keep your holiday décor simple and elegant. Make sure potential buyers can see the home and not the explosion of decorations. Proper staging can go a long way to getting your home sold. We can provide tips and staging services when you use our services.

If you don’t want to remove all the family portraits you can wrap them with holiday paper and bows making them look like pretty décor on your walls. We suggest using gold and silver wrapping not anything too busy that will detract buyers.

If you’re working with an agent obtain the latest comparables to make sure your home is priced ahead of your competition. This market is changing daily so don’t take your current price for granted.

For Sale By Owners: Determine how your home is currently marketed. Make sure you have the right types of exposure. Consult with agents on pricing and consider using marketing services of a Realtor. Commissions are always negotiable and usually there are no up front costs (with us this is ALWAYS the case).

For those looking to purchase a new home here are a few tips:

Shop around with a few lenders. There are many programs available today that include assistance from grants to matching funds. All lenders are not created equal so it’s important to find the right lender for you that not only understands the market but also can guide you through the lending process.

Lease To Purchase Homes:

These types of purchases usually come with a catch. Be sure to read the fine print and talk about topics from how the deed is being recorded to what if payments are slightly late. Review the rates, time frames and determine what the purchase price will be at the end of the lease. Will your money be forfeited under certain situations? 90% of lease purchases never occur causing loss of money and frustration for buyers.

Shopping The Market:

The same goes for buyers in that seeing comparables of recently sold homes will help determine the purchase price. Reviewing a property history will also go a long way to helping you keep informed. Often homes for sale remain over priced as owners will ignore the market around them and remain in denial. Despite what agents have indicated these owners often over price their homes. What seems like a good deal may in fact turn out to be a disaster. Having agent representation in these situations will help protect your best interests. Agents will negotiate the contract with sellers and reveal potential pitfalls found in inspections and title reports.

Always have an inspection! We can’t stress this point enough. Even homes that are being marketed “as-is” must have an inspection completed. The purchase contract can be worded so that you have the opportunity to cancel the purchase without penalty and with full refund of your earnest money if the inspection is found unsatisfactory.

See the potential but also be cautious. The old saying if it’s too good to be true it usually is applies here. Having an experienced agent work up due diligence on the property can save you from headaches in the future.

Short Sales:

If your hope is be in a new home by January avoid short sales. Banks are often slow in responding. Even if the seller accepts your offer you still have to wait for the bank or banks approval. Due to the current economic state of the country and sheer volume of short sales the banks are very slow to response. They have limited number of loss mitigation agents to process the volume of short sales nation wide. .

Foreclosures:

With this bank owned homes a quicker close is possible since there is no loss mitigate involved. Often great prices are found but the same due diligence applies.

So if you’re hoping to be home for Christmas or for the early part of next year let us help you find your way!

Amidst the housing market turmoil and the sheer quantity of homes listed in many markets the most popular question for those selling homes is what do I need to do to get this home sold?

If we knew 100% of the time we would both be sitting some place exotic right now sipping margaritas and enjoying a much-needed calmer lifestyle.

Of course we answer to price the property right but there are other things you could do to get the home sold and YES sometimes at a slightly higher price than your competition or perhaps higher than what an agent may have indicated. Yes it’s true that you don’t have to be priced at the very lowest point especially in cases where the competition isn’t providing the buyers what they want. Sure pricing below the competition will hopefully attract buyers but this is just one possible thing to do.

Ok so what do buyers really want? The #1 thing is the old standby location, location, location but in today’s market there maybe 10 homes in the same highly desirable location all just sitting and waiting for new homeowners. Also in this market most buyers want “the great deal” and in some cases location will take a back seat.

What can you do to set yourself apart?

To capture the most buyers it’s all about creating positive, warm & inviting impressions. We want to open up your home to reach as many buyers as possible. For this purpose staging or as we like to call it presenting your home to create positive impressions is the #1 thing you can do attract buyers.

There have been numerous books and articles published dealing with staging. We want to stress that you don’t have to spend several hundred dollars or thousands in hiring a professional to come in with lots of big furniture. With our marketing services we now incorporate how to attract buyers through presenting & staging your home to create a positive impact. We provide tips, examples, strategies and even props to make those positive impressions.

Our clients receive a new wealth of information to reach out and attract more buyers. Upon our initial walk through of your home we will show you how our program works. Some items we may suggest will cost a bit of money but nothing too drastic we promise! In terms of repairs while it’s true that the more repairs you have to do may impact the price often you don’t have to fix the major repairs and you can still make that positive impact and reach the most buyers. After all repairs can usually be negotiated or even handled out of escrow.

Presenting your home to reach the most buyers is first and foremost about clearing the clutter and cleaning the home! The problem is many sellers don’t know how to define clutter and what to actually remove from their home. Having a presenting specialist enter your home and advise you on these matters will help attract the most buyers. It’s our new service that’s always included in our full marketing of your property and at no cost to you!

There is obvious clutter such as stacked boxes, too many dvds, books and various items spread out all over. However there are many things usually missed from the glass collection to the too many pictures or art display all over the walls. Think about the Johnsons, new buyers that are looking at 3 bedroom 2 bath homes in your town. They pull up to your home and are greeted by a lovely pathway with a few flowers and what appears to be a clean home painted in nice neutral or light colors. They walk up to the door and their agent opens the home for their viewing pleasure. The first thing they notice is a large deer head with antlers hanging from the family room wall. They can’t help but focus on the deer head. Their eyes just go right for it. No matter if they are pro or anti hunting they are now occupied by that deer head. They aren’t seeing your beautiful family room. Now imagine this type of item in several rooms or perhaps other items that cause the Johnsons to talk about the item but not your home. Are they being left with a positive impression? Are they seeing your home for all it is including a wonderful place to entertain? Buyers get lost too easily and making the right impression with them is the #1 thing to do in order to get your hoe sold. This is just one of many, many examples we can provide. First you must attract the buyers by having your home priced properly. Besides pricing you must have wonderful pictures that were taken post staging! Next you must keep your home in the buyer’s minds as a place they can not only themselves living but enjoying too.

Tami and I have worked with so many buyers who indicate what they want initially and as we see the home this quickly changes into what they’d like to see in a home. It’s about emotions, feelings and how the home speaks to them. Sellers that don’t give a chance for their house to speak in positive tones to these buyers are at a real disadvantage.

We are ready to guide sellers through this presenting process. While Scott is now a Certified Home Marketing Specialist, Tami has also taken many ERA courses dealing with presenting & staging of homes. Together we provide many tips, strategies and even bring in some props that will help attract and keep buyers focused on your home.

Give us a call for a consultation and let us show you how providing buyers with what they want can get your home sold quicker and often at a higher price. We have the tools for you to use and best of all it’s all included in our marketing of your home!

Turn on the news and the negativity reigns supreme. We are not sure how this bad news is impacting the way others look at the market but after being bombarded with negative stories in the media and those negative campaign ads left and right we can’t wait for an end to this upcoming election. We also can’t wait for better times which we hope will be coming in the next few years. We won’t get political here but the fact is there are too many people hurting today. People looking to move on by selling their houses are experiencing first hand a rude awakening. We have so many short sales out there for people owe much more than their home is worth. We’ve provided helpful advice in the past and it’s something we will revisit to some degree in this entry.

Our mindset is to reach out to people in all their various life transitions and truly help them reach their goals in real estate, whether that is homeownership or moving on by marketing their current home. Providing advice and in many cases opening eyes to what is going on in today’s market is very important. Helping people is what’s truly number one for us.

Despite all the bad news there’s always a glimmer of hope. For instance right now many buyers who couldn’t afford homes just a year ago can now have their pickings. Investors who were sitting on the fence unsure whether it was a good time to enter the market can now purchase prime real estate including multi-family residences for pennies on the dollar of what their friends paid 2 years ago. Real estate purchases made well under market value are going to give you the most growth in your nest egg.

Last year we saw a trend of many buyers over paying for their properties. One year later some are now trying to sell those properties and finding them to be worth $20,000 to $30,000 less. A report recently issued indicated that 50% of current homeowners feel that their properties are worth more than they actually are today. This is why running comparables and making sure you understand what’s going on in your local market is key. Each market is different and experienced agents can help you make sense of what’s going on.

Do you know people that have lost their jobs? Recently I heard from two of my closest friends who were just terminated. In one case it’s putting additional stress on their marriage and family as they look to continue to make their mortgage payments. In the other case a friend is looking to rebound and find a new job to start saving for the future purchase of a home. Both cases pose different challenges but transitioning with the market will help.

Transitioning in life is always a challenge but it’s one we welcome with open arms. Both Tami and I have faced many changes in life head on with positive attitudes and looking to learn from the past mistakes and move forward. Applying these same principles at any stage of your life can help you too.

It’s true that selling a home in today’s market can be a nightmare, especially if you’re priced out of the market and you simply owe too much on your home. In running comparables for many customers and clients lately we continue to see this trend. Our advice has been to go back to your lender and see if they can adjust the interest rate down, extend the term of the loan or perhaps take less than what is owed as a last resort (short sale process of marketing the home). See if you can obtain rent for the home that covers the mortgage until the market turns around, which could be a year or several from now.

For buyers out there that have yet to qualify for a loan or perhaps are not in a great position at this time to purchase a home our advice is to contact a local lender that you can trust to provide you with advice and perhaps a pre-approval letter. A word of caution continues to be to watch out for all those gimmicks that too reign supreme on the internet, in your mailbox and just about anywhere you turn. Gimmicks are stronger than ever thanks to the market challenges. However a rule of thumb to consider is that if it’s too good to be true it probably is the case.

We’ve seen the same advertisements over and over again saying move-in to your new home today with no down payment and bad credit is not a problem. What we suggest is that you read the fine print as there is usually a catch or several catches. Look to see if the Deed of Trust to the home will be in your name. Ask what happens if you are even a day or two late on a mortgage payment. Where would the home close in terms of the title company in Idaho? What is the interest rate and does it adjust? Just who is borrowing the money? Is there a balloon payment in say 3 or 5 years? Is there a penalty to pay off the loan? Do you have a chance to renegotiate or refinance without penalty? Whatever you do make sure you see all the terms are in writing. Better yet ask in advance for a copy of the sales agreement and have an attorney review it. In most cases these people that are preying on others won’t even let you see the agreement in advance or may in fact change some terms once you do go to sign. Our advice is buyer’s beware and work with a real estate agent you trust.

We know these are challenging times for many buyers and sellers alike. For clarification, information or any assistance you may need during these changing times in both our economy and our government as they pertain to real estate feel free to contact us. We love helping people, we don’t bit and we always remember that you’re the focus!

These are tough times all around. Families are feeling the pinch with rising utility costs, fear of job losses, layoffs, higher education, medical, dental and grocery costs. Tami and I know this first hand as we deal with the same concerns as most do. We review our family budgets; cut costs in many areas including food shopping and we hang on tightly. My son Jayden hasn’t started daycare yet and frankly he may not. Luckily I have Tami’s teenagers who are home schooled available to help watch him. This savings of $550 per month goes a long way. However, many families aren’t so lucky and need to work several jobs and place all their children into daycare, which causes even more stress on their family and their budgets.

Whether you’re buying, selling or currently a homeowner that is concerned with what’s currently happening in our economy this market impacts your life. Read on to see what possibilities you have to help yourself or the people you love in their real estate needs.

Many people want to purchase a home instead of renting. This does make sense when rents can be as high as if not higher than a mortgage payment. Renting provides no tax advantages and often the apartments or homes are not too comfortable and have landlords that are not to quick with fixing or updating appliances or other items in the home. Renting is good during some situations but it’s not really a place to call your own is it?

For any potential homebuyer the first step is to contact a lender and review your financial situation to hopefully become approved. People face many challenges nowadays including credit related, debt to income and down payment related issues. One key is to find a lender that will advise you on what steps to take to help resolve any issues preventing a current approval. Even when problems are found the key is to Never Say Never!

As agents we say please work with your lenders to fix the current problems. We have worked with many people that were first declined for a loan correct things and change their lives to become approved 6 months or even a year later. We’ve also worked with people that refused to listen saying that it will never happen and so they remain in the same situation. Never Say Never!

One great example is what is happening to a young couple we are working with today. We have been working with a couple since June and unlike most people that say they will work on the problems this couple did. They fixed many outstanding issues the past several months and now they are approved. We have identified 2 properties in their price range of $80,000 with 1 to 2 acres (outskirts Boise Mountain area) and now they are ready to write an offer and make the dream of homeownership a reality.

Many times people throw up their hands especially in today’s climate where it’s even more difficult to be approved. Giving up is not the solution. Sometimes clients say they will work on things but never get to it through procrastination or additional spending instead of debt consolidation and then 6 months past and they are in the same position. Often people are fearful of trusting others so they refuse to give out their personal information to correct the issues. Stepping out of your comfort zone and providing any and all documentation to your lender is part of the solution. Yes this includes your blood type and possibly your firstborn child. Of course we are just kidding here you can’t get rid of your firstborn child that easily. The key is that every problem has a solution. It’s all a matter of working with people to find that solution. We are not just saying for buyers to open up and provide information, seller’s too need to be open and provide details on their property such as liens, personal judgments or other issues that may impact the sale of their property. Being upfront will save so much heartache and time in the end. Real estate must go back to being about people and solving their issues.

Never Say Never! Many sellers are giving up on the marketing process either pulling their homes off the market, renting them out when possible or letting it go to foreclosure. We’ve seen past homes whereby we indicated a price range but the owner refused to accept the reality of the current market situation. One example was where we told a client that his home should be priced in the $270,000 range, but he insisted on trying for at least $320,000, despite owing far less than the $270,000. Now it sits 8 months later at $280,000 after several price reductions. He’s chasing the market, which is never a great thing to do. His home has fallen further toward $260,000 in value. If we could have obtained that $280,000 8 months ago he would have sold this home, saved thousands and been done with all this stress.

Never Say Never! Consider all options and solutions in today’s market. Work on things now that need to be done. Pull your credit reports and review them for inaccuracies and issues needing to be resolved. Start consolidating debt by transferring high interest credit cards whenever possible to 0% promotional cards and then make the same if not more in payments toward the new card thus decreasing the balance. Owners currently marking your home keep the home priced ahead of the market and make sure it’s clean and ready to be shown at all times. Contact agents that provide aggressive marketing campaigns and listen for solutions that agents may suggest. Remember it’s always about putting people first.

We’d love to help you with your real estate needs in any way. Whether it’s just to ask us some questions, for some advice or if you’re ready to go now please contact us so we can see if we are a right fit for each other.

Foreclosures & short sales are accounting for almost 35% of the current housing inventory in the Treasure Valley area. While new foreclosure filings are down compared to last month the 35% number is creating some very upset buyers and sellers.

Right now we have 2 clients that are in the middle of short sale negotiations. I say in the middle but the problem remains the negotiating really happens between the lender and the current owner or in reality it’s between the lender, their loss mitigation department, the listing agent representing the owner and the agent representing the buyer's best interests. Sound confusing? It is a bit but let’s explain what this all means and how it usually works. After we will look at 3 cases of recent short sales one in Boise, 1 in Nampa and 1 in Meridian to see if they were a great deal in the end.

Remember short sales happen when the owner owes more than what the home is worth. If the lender indicates that they are open to taking less than what the owner owes it’s considered a short sale. The problem is getting the lender to consider taking less. It’s not a simple process. A completed short sale packet must be submitted to the lender. Many components go into making this packet complete. Just to name a few they include a Brokers Price Opinion, a Hardship Letter from the owners, Proof that the owners can’t make the payments by providing bank statements & financials, market analysis and more. An incomplete packet causes further delays to this already lengthy process. Many agents new to the short sale process may not have the knowledge or training needed to represent their clients in the challenging world of short sales. We’ve seen agents indicate that an approval from the lender should only take a week or two only to still be waiting a month later. Frustrating you bet!

With the market continuing to trend downward at this time another problem facing sellers and buyers is that the comparables for areas continue to drop. Short sales and foreclosures contribute to this drop. Lenders want recently sold comparables and often this too can hold up the process for as they wait new comparables become available to analyze.

It’s not just a case of a single decision maker behind the desk saying yes or no. Lenders have their loss mitigation departments that must review the short sale packet. The more inventory they have you would think the more likely it is for them to respond quickly and take even less. That’s simply not true. More inventories equal a longer response time to review the packet. Prices aren’t reduced based on volume but instead based on market analysis for the particular location along with the short sale packet and the lender's own goals.

One of the main benefits for sellers with short sales remain that they can usually move on with a smaller hit to their credit (something around 100 points compared to an involuntary foreclosure which is several hundred points).

What about the “great deal” buyers find with short sales is this usually the case? I felt the answer was probably only on occasion and so to find out I did a random sample of 3 subdivisions, 1 in Boise, 1 in Nampa and 1 in Meridian in various price ranges. Here are the results using comparables based on recently sold homes with similar square footage in most cases and with many similar features:

Rockhampton Subdivision located in SW Boise

Short sale property located at 12460 W Tevoit St

3bd, 2ba 1868 sq ft

Sold $206,000 on 9/3/08 which is $110.28 per sq ft

Vs. Other Recently Sold Homes

Foreclosed Home:

4bd, 2.5ba 1802 sq ft

Sold for $192,500 in July which is $106.83 per sq ft

Owner Home:

3bd, 2.5ba 1891 sq ft on a bigger .25 acre

Sold for $190,000 in June which is $100.48 per sq ft

Blackhawk Subdivision located in NE Nampa

Short sale property located at 10570 Gossamer Court

3bd, 2ba 1486 sq ft

Sold 8/29/08 for $137,000 which is $92.19 per sq ft

Vs. Other Recently Sold Homes

Owner Home:

3bd 2.5ba 1708 sq ft (Much larger I know)

Sold 8/22/08 for $139,000 which is $81.38 per sq ft

Investor Owned Home:

4bd, 2.5ba 1545 sq ft

Sold 8/1/08 for $139,500 which is $90.29 per sq ft

Baldwin Park Subdivision in NW Meridian

Short sale property located at 1425 W White Sands Drive

3bd 3ba 2137 sq ft

Sold 6/10/08 for $203,058 which is $95.02 per sq ft

Vs. Other Recently Sold Homes

Owner Home:

4bd, 3ba 2428 sq ft

Sold 7/31/08 for $212,000 which is $87.31 per sq ft (Short Sale Impacted?)

Other Short Sale Owned:

3bd, 2ba 1788 sq ft

Sold 7/11/08 for $203,000 which is $113.53 per sq ft (Not a good deal!)

The results here point out that short sales are not the great deal savers that some would have you believe. There are great deals to be had by both owner and foreclosed properties as shown. It’s simply a myth that all short sales bring incredible deals. Seeing the comparables and having your agent negotiate on your behalf will help you reach an informed decision.

Yes short sales and foreclosures are accounting for basically 1/3 of the current properties on the market. We understand how it’s benefiting the owners but it’s also causing so much frustration for other sellers and for the buyers out there looking for what they perceive is a great deal but don’t realize the waiting times involved and the realities when they see the recently sold homes in the same area.

It’s also worth going back and reviewing the last Short Sales blog entry found here.

Contact us to see comparables, review any property history or to provide you with excellent representation whether you’re a first time homebuyer, transitioning in life to a new home or marketing your current home. Remember, buyers never pay to use our services and sellers only pay once the home is sold!

We’ve often been asked to show a home, setup a tour to view homes or to provide automatic email so people can see homes the same day they are listed. Sometimes while showing a house our clients fall in love with the home only to find out later that the monthly payments are too much to handle. Many times this reality results in dashed hopes, dreams falling by the way side (even if for the now) or expectations gone awry. Worst yet clients are sometimes told that due to credit issues or their debt to income ratios they simply aren’t able to purchase any home at this time.

We can’t stress enough that the first thing any potential homebuyer should do before looking at homes at all is to get pre-approved! In today's ever changing market becoming pre-approved can be a challenge. With all the recent mess the financial institutions are still adjusting. Today 1/3 of all homes in the Treasure Valley area are subject to short sales or they are foreclosures. The process of contacting one or two lenders to review your financial information will save you headaches, heartaches and overall frustration. A bit of a warning here is that all lenders are not created equal. :) You’ve seen commercials promising this or that from national lenders and then there’s the signs promising “no down payments” or “bad credit, no problem live here today.” Like the old saying goes if it’s too good to be true then usually it is so! We work with straightforward, local and helpful lenders so if you need a few names and numbers don’t hesitate to call or email us.

Good lenders not only provide you with options but also review what monthly payments approximate based on good faith estimates. In addition if you are not in a position to purchase a home these lenders will go the extra mile for you explaining what steps to take to better your position to purchase a home whether that be 6 months, 1 year or even longer. Don’t give up the dream of homeownership. We’ve worked with clients that had high debt to income ratios but after consolidating their loans and paying off a few items they were pre-approved. We’ve seen people with year old bankruptcies wait 1 more year and then purchase homes. Many people have credit related issues and it’s important to review their report in detail and remove the items that have either been paid for or perhaps are not actually theirs to improve the overall score. In some cases this can take a few weeks, while other times it may take months or years. Remember credit repair is very doable and we’ve seen first hand clients that were pre-approved within weeks of obtaining, reviewing and correcting their reports.

We always say that when purchasing a home it must be right for you. This means that you must love the home but also you must be comfortable with the monthly payments. There’s a home out there for everyone. Even if it takes weeks, months or a year plus homeownership is within your reach. The first step is to get pre-approved for financing a home through a lender that is knowledgeable, helpful, straightforward and will take the time to help guide you through the process.

This Loan Application Checklist can serve as a guide. Just as important and helpful is reviewing the Overview of The Purchase & Sale Process. If you're considering purchasing a home in the near future we strongly suggest you save money now. How much will depend on your credit scores and the type of lending program you qualify for and/or select. 100% financing is basically gone so whether it be 3%, 5%, 10% or more that is needed the key thing is to save now!

Statistics in the Treasure Valley indicate that approximately 35% of homes listed on the market are either subject to a short sale (dependent on bank/lender accepting less than what the owner currently owes) or are bank owned (foreclosed) properties.

This statistic is truly eye opening. This means that 1 in 3 homes that our buyers are interested in viewing may have more complications and ramifications than before.

There are so many variables when dealing with these types of properties. We’ve reviewed many in our past blog entries but it’s worth discussing again as more clients are coming to us either confused from their past or current experiences or just trying to make sense of today’s market as they look for that “killer” deal they keep hearing about.

We talked about the real estate transaction as a type of dance whereby both buyers and sellers along with their agents must work together to bring about a successful transaction for all parties. What about when the home is subject to short sales?

While short sales present an opportunity to perhaps purchase a home at under the current value they also provide possible delays in bank responses leading to frustration and confusion. Often we are seeing banks delay in returning decisions by weeks or even months. This delay is rather common than say a bank owned 3 to 5 business day turnaround. One way to make sure you don’t get caught in this delay is to have your agent talk with the listing agent of the home. It’s not enough to just ask the listing agent if they are in contact with the bank. It’s more important to know if the listing agent has the actual name and phone number of the decision maker. You’d be surprised to find out that many times the bank hasn’t talked with the listing agent directly. Often it’s done via email or by way of an online software program. It can be so impersonal whereby an agent representing a buyer is calling the listing agent daily only to have them not return their calls for several days. Often once a call is returned the agent indicates that the bank has not reached a decision. Banks could be reviewing offers, waiting for more offers, or examining the economic status. Usually it’s a combination of all these things. Maybe it depends on their inventory, the time of month, their morning budget meeting we really don’t know for sure but chances are again it’s all of these things making for a very frustrating experience.

How do you know if a home is subject to short sale? Call an agent and have them pull the listing and talk directly with the listing agent. Don’t enter into a contract to purchase a home blindly and make sure that you understand the time limits involved. We know it’s very emotional but having as much information as you can while having your agent manage all expectations will help you in the end.

Bank owned properties on the other hand present just as good and usually better opportunities for buyers looking for a great home at a very good price. One thing to look out for with bank owned properties is the “as-is” disclosure. Your agent can help negotiate through the “as-is” disclosure by writing into the purchase and sale agreement that although the property is “as-is” an inspection will be allowed and if any issue related to foundation, plumbing, electric, roofing and/or environmental (mold, etc.) should be found that you be allowed to terminate the contract without penalty and with full return of the earnest money. This type of phrasing helps buyers and often the bank will allow it.

With short sales and foreclosures on the rise we are not yet at the bottom of the housing crisis. Inventory is still high and often sellers aren’t willing to deal on the price with buyers. At the same time often buyers are determined to find what they perceive as the best deal so they undercut an already below value home by another 10% to 15% expecting the seller to accept this low offer. The answer is of course to have good agents presenting the information and negotiating on both sides to get a meeting of the minds. Yet often buyers won’t listen to their agents despite seeing the comparables. Often sellers won’t listen to their agents despite seeing the same comparables. Often trying to meet in the middle is the answer. The problem arises when one or both parties refuse to listen or pay attention to the market. Leading with emotion simply leads to frustration. We know it’s emotional and getting into a seller’s head or a buyer’s head to determine what they must do to make it the right deal for them is even more frustrating.

There are many homes out there in all price ranges from starter homes at $80,000 to 2000 sq ft homes at $180,000 and from elegant homes in the low 300’s to mansion style of homes in the 400’s and higher. What’s still true today is that comparables are one good tool to help decide price. Recently sold homes show what the market is willing to pay for these homes. Have your agent show you the comparables for a home directly in the neighborhood or just outside the area of the home you wish to purchase.

Make sure you understand about short sales and bank owned properties. Your agent must help set expectations and guide you throughout the process. Looking for a great price is wonderful but looking at the actual sold properties and considering meeting the seller half way is how the deals will usually be made quickly and to each parties mutual benefit.

As always contact us with any questions, to see comparables or a property history, to view properties or for great agent representation where you’re always the focus.

WITDJR

This is an acronym taken from AutoZone

The meaning is “What It Takes To Do The Job Right!”

For us this has a special meaning and we look to practice these same quality standards that AutoZone attempts to instill in their employees.

GOTCHA another acronym stands for “Go Out To The Customers Auto.” In real estate we believe in meeting our client’s where they want to be met, showing the homes that they want to see and making sure that they have all the information needed to make an informed decision.

The Tools Needed

For AutoZoners it means physical tools such as a wrench, screwdriver or whatever else is necessary to fix the car.

For real estate agents it’s items such as computers, phones, the ability to think outside the box (our brains) and our eyes. Some of these tools are more recent than others. Years ago there were no computers, no cell phones and no MLS (Multiple Listing Service). Yet agents still got the job done in part by using their eyes, their minds and their contacts. Our eyes allow us to see all the possibilities. For example when a home is so cluttered and outdated if you can see beyond this by noticing the potential then you’ll turn the home into a blessing. A recent example is our listing on Freezeout. By putting new flooring throughout, updating the kitchen, bathrooms, new paint and a complete cleanout we are now looking at a newly remodeled property that shines. What’s amazing is that the cost of this was under $5000 and included new sinks, flooring, lighting fixtures, paint & doors. Many would put this cost around $15,000 but having the right contacts can help you cut this cost down by two thirds. This is an example of how we do whatever it takes to do the job right for our clients.

Using our minds to think of the possibilities, the whats and the hows helps the client through the joyful process of home ownership with the least amount of hurdles to jump through.

Clients want the best possible service coupled with insights, knowledge and making sure it’s done right. We stand by these same principles. In today’s market with so many choices it’s not just about the price of the home but also about setting expectations for various encounters such as short sales, foreclosures and REO (Bank Owned) properties. Of importance is also the condition of the property and making sure that all contracts are explained and executed property. It truly is about doing the job right.

Vendors & Lenders

Surrounding yourself with excellent people is vital. They must have experience, treat their clients with respect, be affordable and get the job done right. If any mistake is made they must be willing to correct it in a timely manner and at their cost. When the focus is on the client then doing the job right is #1.

A Question of Trust

With the messy housing market out there one of the common questions asked by homeowners and people searching for their new home is whom can I trust? It’s difficult to read through all the negative stories that the media reports and the various positive spins that professionals put forth. We feel a quick summary and recap of our market here in the Treasure Valley will help shed some light on the current market. Also reviewing a few items regarding the issue of trust will help you make informed decisions

Treasure Valley Market Summary

Inventory: As of today there are 4398 homes for sale between $150,000 and $300,000 in Boise, Meridian, Nampa, Caldwell, Kuna, Star and Eagle. This relates to nearly 8 months of existing inventory. For homes priced above $300,000 there is approximately 13 months of inventory. What this means is that our market remains very strong for buyers looking for homes in practically all price ranges. A noticeable issue that we’ve brought up many times is that a large percentage of homeowners are not acknowledging the change in the market and adjusting their asking prices either too slowly or too late leading in many cases into their need for a short sale.

Short Sales: Shorts sales are on the rise. A short sale occurs whenever the lender agrees to accept less than what is owed on the property. Many times a home facing a short sale isn’t listed this way in the public comments. Often we have advised clients to be careful for the home was subject to a short sale. While this could be a bargain often the frustration in waiting for weeks or even months for the bank to return a final decision negates the potential savings for the buyer. Short sales aren’t always the deal they seem. Why you ask? Often the homeowner owes more on the property than what other homes in the neighborhood are selling for which means the savings are eliminated. Thinking that a short sale is a guaranteed way to pick up a real bargain is not always the case. Before making any offers find out if the home is subject to a short sale, check into other listings, run comparables and by all means call an agent you trust.

Foreclosures: Foreclosures are also on the rise. A foreclosed property occurs when a consumer defaults on the loan that they’ve taken and the bank repossess their house. Foreclosed homes often end up for auction at the county courthouse steps or one of our local title companies. Many people think they can show up and purchase the home for pennies on the dollar. The truth is that many times the bank has entered a blind bid buying the house back themselves. Remember cash or a cashier’s check is needed to purchase these properties and finding amazing deals aren’t plentiful during this process. When the bank purchases the property it becomes a REO (Real Estate Owned).

HUD, VA & REO Properties: There’s a rise in these type of homes. HUD and VA are government owned homes. The government guaranteed the home and stepped into payoff the home from the mortgagor that defaulted making them the current owner. On a HUD home generally speaking you will get a decent deal. The house may not be in great condition but the price is what is needed to recoup costs. You can find HUD and VA homes at http://www.hud.gov To make a bid on one of these homes contact your local agent. REO homes are usually contracted with agents in our area who list the homes on the MLS (Multiple Listing Service).

Overpriced Homes: In cases where current homeowners owe to much on their home it maybe headed for the short sale, foreclosure or government owned process described above. Refinancing could be an option or simply discussing a new plan with the current lender may help. In many cases though the owner would like to get X for their home but X is based on 2005’s higher prices and not the current value. For example in one neighborhood we follow closely the highest priced home sold in the past year was $450,000 yet there are many homes priced $490,000 and higher with similar square footage. Months have passed and whenever a new home goes on the market under $450,000 it usually sells rather quickly. The other homeowners will need to adjust or remove their home from the market. Ask your agent to see the comparables before making any offer.

Building Trust

Trust must be earned. There are a few things to look for when talking with people from mortgage lenders to agents and any real estate vendors you encounter. Ask questions and ask them in multiple ways. Many agents feel they are in charge but guess what they are not. We are human beings just like you, licensed to perform a service of meeting your needs and your best interests. The agent’s best interests should come last! Do not feel in re-wording your questions that you are tricking the agent. What you are doing is finding out what the agent’s true motivation is and once that is established then you will know if you can trust that person. This same principle applies to anyone you are looking to worth with in the future.

Actions speak louder than words. Look to see if the person you contact follows through with their statements. A little slack needs to be granted for such items that may cause a delay in response such as family or previous appointments. Often agents or vendors may take a day or two instead of an hour in getting back to you but they still followed through. Managing expectations on both sides is key in establishing a working relationship.

Many people look for agents with the most knowledge. However, it’s not just about knowledge. It’s about having the wisdom to know how to impart that knowledge to benefit the clients. Have you ever met someone with a high IQ who although they where smart they had no common sense and handled themselves and situations really poorly? We all have and that’s why when looking for an agent it’s not just about book smarts but it’s about the heart and drive to get things done right for you.

If you want to know more about us as agents feel free to email or call us with any questions. Looking for help at all just let s know. We truly are here to help our clients with all their real estate needs.

This first blog entry today is a repost of one of our most popular blog entries. It's been a little over a year since this blog entry was highlighted and based on email feedback we decided to post this here again. We will also have a new entry "A Matter of Trust" that will be posted by 7/11/08. ------------------------------------------------------

Well this one may be a bit controversial but I’ve been thinking about this for a while and decided after encountering so many people that have strong opinions about agents that it’s time to share my thoughts.

I think the final straw was when I heard a radio commercial by a discount brokerage that took a shot at other brokerages implying that the main reason client’s homes aren’t selling is because of the commissions charged. Of course there was no mention of how price is calculated by other comparables and they failed to mention what is common practice by them, which is letting the client inflate their asking price on their home so they can obtain the listing. This kind of false advertising drives me crazy. So with this in mind let’s debunk several popular myths about real estate agents.

Stereotype #1: All Real Estate Agents Make Tons of Money

The fact is that most agents barely make enough money to afford the family mortgage and to pay all of their bills. In many families it takes 2 incomes to support the household and in our profession this is mostly the case. In the Treasure Valley most agents are not making close to the 6 figures that is a common belief. In fact in our market you would need to sell approximately 30 properties at an average of $250,000 per home in a given calendar year to earn around $80,000. This is not an easy goal to obtain during a slower market and even during a good market it’s considered great to sell 20 homes per year.

Sure there are some hot markets such as San Diego, New York or San Francisco where during the housing boom an agent could sell 10 homes in a year and make $80,000. But in most markets where the median price for a home is $240,000 or even lower that’s simply not the case.

Commissions are not fixed and are always negotiable. First the commission fee is split between the listing and selling brokerage. Next the brokerage splits the commission again with the agent and it’s common for agents to earn 50 % to 70% of that split. After all expenses and there are many a sold home at $250,000 may yield around $3,000 to $4,000 and that’s before taxes. Not exactly tons of money.

I also want to say that for those agents operating in higher priced markets making money is not a sin. What about lawyers, doctors, top sales people or executives in any profession? As with any job these agents have worked hard to get where they are and enjoying the monetary result is one of their rewards. It’s fine to make money but to say that all agents are rich when most are just making it by just isn’t right. Myth #2 is another big one that contributes to the negative stereotype people have of agents.

Stereotype #2: Being a Real Estate Agent is Easy!

Oh my there’s almost no such thing as an easy transaction in this business. Long hours are common practice. This job comes with lack of sleep, high stress and the managing of each detail of the transaction, which almost always presents difficulties and new challenges. There are agents in the business 30 years plus still encountering new scenarios that requires hours of research, calling and writing letters on behalf of their clients to get positive results.

There are so many moving parts to any transaction coupled with the many hats that we wear (see my other recent blog post). In most of our business relationships we are counselors, research analysts, project managers and conflict management specialists.

We answer to our clients and they often expect more from us than they do their friends and family. If you enjoy working late nights and weekends away from your family, spending money on everything from marketing, advertising, gas, license fees, monthly fees, association dues and of course taxes, all along knowing you are dependent on the what the market is doing and that you’re actually pretty lucky if you earn $50,000 in one year, then yes please do consider this as a career. Ok then why do it you ask? For me it’s the rewards of helping people find homes, freedom to make decisions on my own and in part setting my own schedule.

Stereotype #3: Agents Are Show Offs and Have Huge Egos

Some do that’s partially true but there are many down to earth that simply put their client’s needs first. I’ve heard people complain about the fancy cars and suits that seem to go with an attitude of I’m too good to help X or Y out. I’ve seen and heard a few people behave this way in our industry but I believe it’s not the norm.

I hope that I’m not showing off when I say have you seen my 2003 Outback Subaru? How about my associate Tami’s older Grand Am? :)  Splurging is not an option and certainly not what we choose to do. Again if you’ve earned the rewards there’s nothing wrong with spending the money. However, we operate on the motto of putting our client’s needs first. We are grounded and what drives us is finding and selling homes for people that need to make a transition in their life. Next time you come across a pompous agent just remember they are in the minority and run to another respectable agent that you can relate to and will do the job right for you. The next myth often doesn’t help remember this point too much.

Stereotype #4: Agents Are Consumed With Their Image

You’ve seen it before, over and over again in all advertising from billboards to magazine ads. It’s on our business cards, on automobiles and sometimes it’s on movie screens, television shows (see Desperate Housewives) and just about anywhere else you can think of looking. It’s the agent with the model image. It’s the head shot with the perfect hair, the wonderful smile, the expensive attire and sometimes even the cleavage. The real estate industry is about selling us and not our services. People identify with an image and if you don’t present the image they won’t choose you. This type of thinking feeds into our industry. It’s so out of control isn’t it? I really don’t care what John, Mary or Fannie Mae looks like. I just want someone that will get me results. I want someone that I can identify with and someone that answers their phone or gets back to me within an hour and not hours later or the next day. I want someone knowledgeable about what’s going on in my subdivision, community, city, county. Isn’t this what most of our client’s want? Then why do we perpetuate the standard headshot followed by the home? Why do we prop our image up instead of our results?

Let me say that it’s not just the agents that maybe consumed with their image. It’s the media and the industry as a whole that continues to encourage and promote this effort. I believe it’s our own industry the real estate profession that continues to promote this way of thinking. While it’s true we must sell ourselves, I believe it’s not so much what you look like “model wise” as proven in most top producer industries rather it’s the skills you have to back it up. This brings me to the next popular myth.

Stereotype #5: Being a Real Estate Agent Requires No Real Skills

Agents without the proper training and continued learning will be exposed as providing inferior services and often will not do well in our industry. Great agents know that learning never stops and that they must and do continue to learn from their peers, their brokers, their mandatory classes, and their often elected seminars and courses all in an effort to better support their clientele.

Some agents go through intense certification programs and like sponges they soak up anything and everything in an effort to benefit their client relationships and maintain their competitive advantage. These are the agents I’d like to have as my associates.

Clients sometimes see agents bumble around and/or not provide them with the answers they need. They may continue to use that agent but when the transaction is complete the client is left with a negative stereotype that all agents must be like this and that it’s an easy job requiring little to no skills. Unfortunately these agents help keep this stereotype going strong. Agents must have people skills, conflict management skills, negotiation skills and the knowledge gained from classes, training and real world experience to break down this stereotype.

Stereotype #6 Agents Only Care About Making a Sale

We have turned down listings when it would not be in our client’s best interest to list the home. In cases where the client is upside down with their balance due vs. what they could obtain for the house is too great we recommend alternatives such as leasing the home or contacting their lender. We also look at other alternatives. It’s not about making a sale it’s about making sure the client is protected and feels comfortable with their decision.

A few agents I know follow the same business practices, but there are several that try and talk their clients into doing things that aren’t right. Unfortunately these few agents feed into this stereotype. Also on the selling side we always say that it must be right for the buyers. We run comparables and when a home is priced too high we make suggestions about the offer range. If it doesn’t work out for the buyer we believe that another home will work out, even if it’s weeks or months down the line. It’s not about putting pressure on client’s to make decisions that they will regret later on. It’s not about getting a new sale or reaching a quota for the month. We look at all options with the client and review things in great depth. Customers appreciate that we are not about pressure services and therefore they refer others to us. This is a win-win for agents and clients!

Stereotype #7 Agents Never Listen & Often They Aren’t Honest

Ok so I combined these two. There’s an art to really listening. Many agents don’t listen and often end up showing people homes they don’t want at all. All this does is cause frustration. Often when given a second chance some agents will show client’s homes in a higher price range indicating that there were not many other choices. Again this feeds into the stereotype. On the listing side agents that let owners set prices far above the comparables are being blamed later on by the same owners. It’s about being honest from the beginning even if it does cause you to miss out on a listing.

Fortunately many agents do listen and adjust home searches to the features that their clients want to see. As we have access to the multiple listing service we can and do show you all the properties and adjust the search based on your feedback.

As in any industry there will be a share of dishonest people. I’ve run into this in banking, telephone services, advertising and fast food. The problem we face is that purchasing or selling a home is the most important decision with hundreds of thousands of dollars going into consideration on both the buying and selling sides. People trust us daily with guiding them through the process. We must continue to earn this trust through honest and straightforward answers. Listening to what’s being said and establishing client expectations will go a long way toward knocking down this stereotype.

I could continue on and on with additional stereotypes but I feel these are the ones I hear the most often. I hope that I’ve managed to break a few down into rubble. I’ll end this by saying with all that real estate agents face on a daily basis would you want this job? My answer is yes.

The people are what matters in real estate and not the buildings. Every structure has a family that can call it their own. Making it their own can take days, weeks, months or even years. Having a place to call home is part of the American Dream.

As new homes are listed it’s very common for neighbors to stop by and take the flyers marketing the home. Sometimes it’s sad to see your neighbors leave. Close relationships are formed and often-familial ties are severed leaving children with what they had considered an extended family unavailable to them. The fear of the unknown becomes a reality when seeing a moving truck pull up to the home.

Sometimes neighbors are excited to find the home listed because perhaps the current owners was a nuisance in some manner, or perhaps they didn’t keep their yard and structure in an appealing condition. Yes, listing the home in this case gives neighbors hope of a new ownership.

There’s also hope that the home will sell for an attractive asking price increasing neighbors home values in return. Reality can also be a rude awakening, as the property sits months on end at a higher price than the market will allow.

Are there ways to make this transition easier? Often neighbors can help change the faces of real estate by contacting people they know that may want to move into their neighborhood. You might be asking isn’t this the real estate agents job? Definitely not that is considered steering. We can’t choose your neighbors. Your future neighbors must select your community of their own free will. Agents do help find a new owner through marketing the home in various forms. However, most agents don’t know all of your friends, acquaintances and family that may consider the home an option. You can let everyone that you know who has showed interest in your home or area that a home has been listed. Picking your neighbors is powerful and can create a real positive change.

Many people think that selling a home is entirely the agent’s job. We feel it’s a partnership, a joint effort between the homeowner, the agents and the community. The resources agents bring to this process does help. Agent representation makes a real difference when the agents are providing insights into the process, guidance, negotiation, vendor relationships, conflict management and resolution all leading to the most important aspect the successful sale of your home or finding you a new dream home.

Have you ever walked into a house thought the layout was great but said oh my god there’s no way we could live in this house? What made you feel that way? Was it the clutter or the need of repairs? Was it the choice of the décor? Was it the wood paneling, the boogie night motif or perhaps the shag carpeting? Perhaps it was the area posing a commute or desirability issue that’s outside of your control. However, if the answer is one of the former questions perhaps more consideration could go into what makes a house a home.

Home is where the heart is and it’s people that make a house a home. We both entered into real estate out of a passion for helping people. I also entered into real estate in part for I loved driving around and viewing homes in my spare time. To me it was fun just seeing the insides of various styled homes ranging from the 1900’s to the modern built homes. As I drove by I often wondered who lived there? Often I saw names of people carved into old trees, cement driveways or patios and sidewalks. I wondered what fun stories would these people tell about this home? Sure there may have been some sort drama too but I chose to think of the home as a sheltering and nurturing place. A home being a place where people often gather to BBQ, to play games, to celebrate events and to just hang out and enjoy each other’s company.

As for my partner Tami she actually went to real estate school 19 years ago in Southern California. Feeling that real estate was all about the almighty dollar and not the people she became discouraged and decided not to pursue this career back then. After going through her own real estate transactions and relocating to Idaho she realized that if she continued to feel discouraged she better do something to fix it. Tired of seeing the way some people were being treated during a real estate transaction, she decided to obtain her Idaho real estate license. She became an advocate for the people helping her clients get through each real estate transaction. Tami realized it was people’s needs that mattered most and not the amount of commission or how many houses she sold. This is why we so adamantly believe that the #1 focus has to be people and making the transaction as simple as possible for them. To this end seeing people make a house their home keeps us driving forward in the Treasure Valley area.

A house is what you start out with and a home is what you make it! We recently agreed to help a homeowner market  a very affordable house. This Nampa house has 4 bedrooms, 2 baths, 1200 sq ft and sits on a .24 acre lot. When I first entered the home I was shocked to find it needing many repairs and a good cleaning. I called Tami to let her know how I was unsure about this house. After Tami patiently calmed me down a few days had passed. I returned to view this house after Tami spent a few hours cleaning the living room and removing some items from the bedrooms. It was amazing to see how a few hours of work transformed this house into something I was able to envision as a home for people to live. I realized that I was like most buyers in that I quickly ruled out this house after not seeing past the clutter and minor repairs.

Sometimes it takes vision and imagination to see the potential in a house becoming a home. If two homes are identical in layout, yet one is in move-in condition while the other needs a bit of work you’ll often find them priced significantly different. Sometimes just a little paint, carpeting and some minor TLC will be more than worth the savings to you. Most buyers would agree with this but often rule the house out first before obtaining quotes for these repairs or seeing what they can do on their own to really make the house their home.

We’ve worked with people that purchased the aforementioned 1960’s boogie night style homes and remodeled the bathrooms, put in surround sound, painted and replaced light fixtures all over time and turned the place into their own home. It’s fun seeing these transformations. It doesn’t have to be an expensive endeavor. We work with many reasonable vendors and often we help our clients find bargains and do the actual work. Yes, we have gone into homes to clean up on behalf of our clients whom sometimes feel overwhelmed. You never know what life will bring you and often life spirals out of control and people need help to make it happen. Real estate is not about moving properties it’s really about finding the homes that meet the needs of the individual people and helping people transition from one phase of their life into the next.

To see how we can help you feel free to contact us whether you’re buying a new house or selling your exiting home. We would love the opportunity to help you transition to the next phase in your life.

Homeowners and soon to be homeowners need to learn how to dance with each other.

Whether you are thinking about buying or selling in this uncertain market please take the time to learn to dance. A key factor in any successful real estate transaction is the art of negotiations. It doesn’t have to be a difficult process. It’s the matter of taking the time to know when to take a step forward or take a step back and learning the steps of a graceful dance to bring the real estate transaction to a beneficial end for all parties involved.

Living in a me-me society as we’ve come to be, people forget that their wants are not all that are involved. But there are needs on the part of buyer and seller alike that must be taken into account. You can do a 2 step and kill the transaction with ink and pen or you can do a beautiful waltz that give you a first place trophy on Dancing With The Stars.

Make sure the agent you select is the star that will take the lead in guiding you through the difficult phases of negotiating a contract.

Phase 1: Writing a contract and coming to acceptable terms for both parties

When a contract is written you have 3 answers that you can receive a yes, a no way or a counter-offer, which means what dance shall we perform. The 2 step is when you write an offer based on fair comparables that you’re agent has provided you. Despite this fair offer the seller counters for closer to the asking price expecting you to accept it without further negotiations. A 2 step will usually kill a contract. Learn to tango and hope that both agents realize that it may take 3, 4 or 5 steps to come to a melding of the minds where all parties are dancing together without stepping on each other’s toes.

Phase 2: You’ve come to an agreement, inspection has been completed and items now need to be repaired in order to continue with the dance.

An inspection release has been written and presented to the seller. At this point either party can do The Bus Stop and bring the transaction to a halt; or you can do The Electric Slide and joyfully complete this phase of the purchase.

Listing every single item in need of repair will usually kill a transaction. Unless you are buying a brand new home it’s not necessary to ask for all the small items in need of repairs to be completed. For example new outlet covers cost $.50 to $1.00 at your local hardware store and cracks in the sidewalks can easily be filled after closing. Major items that will impact your health and/or safety should be addressed. For example foundation, roofing, plumbing, electrical and HVAC related repairs should not only be addressed, but grouped together in non-intimidating ways on the inspection release so that all parties feel comfortable and informed, helping you slide right pass these hurdles.

Phase 3: The signing at title

Coordinating all parties and keeping everyone patient until the documents have been delivered to title, reviewed and adjusted if needed by the escrow officer and making sure the final walk through is complete make up this graceful dip of a finale.

Sometimes due to work schedules there can be some little hitches where the seller or the buyer have to adjust whom signs first. As long as all parties stay in communication this can work out smoothly ending the dance on a wonderful upbeat.

We decided to write on this topic based on a few recent real life examples. We share these examples and this blog entry in hopes that it will help people in the future.

Case 1: Recently on behalf of our client we made an offer and unfortunately it was killed based on the 2 step dance example. The listing agent encouraged a dance but abruptly halted it despite having actual comparables indicating a lower price that we believe the listing agent chose to psychologically dismiss. Comparables showed the home to be worth 15,000 less than the asking price. The appraisal would not have come in at the asking price and we must wonder if the agent even told her sellers this information.

Case 2: One buyer’s agent we worked with nearly killed a transaction by insisting on several small items being repaired in order to make her appear as a superstar, despite the items requiring little money or time. In this case the agent’s ego was on the line instead of any of the client’s best interests. Luckily our ability to find excellent and affordable vendors willing to step up and help the seller’s family get through this process with little financial burden saved this transaction. We were able to smoothly complete what appeared to be a nightmare for the sellers. In the end it turned out to be a blessing.

Real Estate is a very personal thing. It’s personal not only for the owners desperately trying to sell their home or the new homeowners wanting to find that great bargain that feels like home, but to all parties concerned that are trying to help along the way from your real estate agent and the lender helping you obtain the financing to the home inspector and the escrow officer that’s helping you understand the closing procedures and documents.

Doing what’s right for people that’s really one key to a successful relationship in real estate. So how do you know what’s right is often the question. I’m a big believer that we must really look at many things involved from different angles to make sure it all makes sense and feels right. The first thing I always really look at is the numbers and so for current homeowners and new homeowners the #1 thing is to make sure that you really look over the comparables. Have your agent provide and review the information with you. If you find that homes are not selling for the asking price or even close to the asking price that’s when you must ask what makes this house so special? Is there really $20,000 worth of upgrades? Will the appraiser adjust that much? Your agent must review all comparables and talk to you about the upgrades to see if it’s worth that amount to you. Sometimes buyers find a home with that special something quality and may pay with cash out of pocket slightly above what the comparables show. Relying on this though is risky and usually does not happen.

There’s this saying that there’s a homeowner out there for every home. A good example of this is a home I just saw a few weeks back in Nampa. I’m not an inspector but I do make it a point to try and really get into a home’s faults and make notes to bring it to the inspector’s attention as a possible concern should our clients decide to make an offer on the home. This home had a lot of problems with a slightly buckled roof, low ceiling height, super small bedrooms (2 of them where 8x9) and located right across the street from the train tracks sell for nearly the asking price. We had shown this home to our clients but anyone standing above 5 foot 9 inches would probably feel a bit claustrophobic and anyone that’s a light sleeper would certainly be up a few times each night. We actively listened to their comments and when appropriate brought some additional points into consideration. We often play devils advocate to make sure that many things are considered in the transaction. Sure sometimes people fall in love with a place but if there are things that are overlooked they may get stuck down the line sinking tons of money into the property or feeling very dissatisfied with their purchase. When I say stuck it’s not just the items that an inspector may find but it’s an emotional stuck as well. It’s not a quick and easy decision to purchase a home and so making sure it’s right is a must.

The home ended up selling rather quickly within 3 weeks. It was priced very well, below the other area homes and it was remodeled with some nice fixtures. The concerns I would have had for my clients is that in the future what will the resell be of this property? Will the areas I mentioned such as the roof and railroad tracks be a concern? I suppose time will tell but if in the end the client is happy and feels really good about their decision then it’s likely a success.

Another example of really looking is on the owner’s side in double-checking on the agent that was hired to successfully market your home. Knowing if your home is priced right compared to the recently sold homes in your area is very important. If your looking for a quicker sale making sure it’s priced ahead of your competition is key. When discussing price really look at the overall condition and location of the home. Go into the competitions home during open houses or with your agent. In today’s market ask for and receive pricing updates every 30 days if not sooner. I just ran 9 comparables for a client last night on homes she’s considering purchasing. I found that 6 of these homes were priced approximately 10k to 20k over the comparables. Only 3 of the homes were priced fairly. In this small sample 77% of the homes are priced too high in South and NE Nampa areas.

• Pictures are there plenty of pictures on the actual listing on the MLS?
• The MLS is how most agents and many potential homeowners view the homes. I still see plenty of blurred or unattractive pictures being placed. I can’t believe that agents wouldn’t go back and correct this on behalf of their clients.
• Really look to see that the best displayed rooms and features of the home are being highlighted
• A virtual tour is a must nowadays
• Make sure your agent shows you the virtual tour on the listing, on marketing materials and shows you the tour as well.
• People want to see different angles, many pictures and tours emphasize the attraction of the property
• Multi Platform Marketing
• Not just a marketing brochure but how about a web link, virtual tour, tons of pictures, many internet sites, actively marketing not just putting a sign in your yard!
• Not just how many sites but what sites. Make sure the sites are well known such as homes.com, realtor.com, era.com, treasurevallyhouses.com J
• Detailed Reporting & Thinking Outside The Box
• What is your agent doing to drive traffic to your house?
• Reporting to show you how many people are viewed your home, the tour, entering your home.
• Really looking at feedback from agents and potential buyers to help adjust the marketing, the display of the home and if need be the price too.

There's nothing like a trip to the Bay Area of California to put things back into perspective! My family and I went to visit relatives and friends the past few days. As we drove around the crowded highways it was a challenge to remain calm. You see I tend to notice things easily and sometimes I take it to heart and it upsets me such as the overpricing of homes from the past blog entries. Well in the Bay Area there are so many people in a rush to get to who knows where. I watched many people cut each other off, zoom in and out of lanes and live what I believe to be the high stress lifestyle.

Don't get me wrong there are wonderful things about California and for me the weather usually can't be beat. But the cost of living and price for homes is still out of control! I watched the news one night and saw another negative story of the housing disaster. The news was pretty good for home buyers as they indicated that you could purchase a home for $480,000 in parts of San Jose. Amazing I thought (wink, wink). For $480,000 I could live in a 3 bedroom, 2 bath, 1500 sq ft home. Hmmmm for $200,000 I could live in a 4 bedroom, 2 bath, 1800 sq ft home in the Treasure Valley area.

I'm at the point in my life where I believe that life needs to remain relatively easy. By that I mean it's not worth the stress to be stuck in traffic each morning for 1 hour plus when the 10 miles you need to go should take 15 minutes at maximum. It's not worth the high cost of living and the wondering what will happen should the economy continue to slide. Our focus right now is on our family and providing a wonderful home for them surrounded by friends in a good, safe area. The higher the cost to have this the higher the stress.

I have friends that are paying $2800 plus monthly for their mortgage. That's not easy. They live day to day under a great deal of stress. What if one of them loses their job? How will they make their payment? These questions haunt them and they tell me so. They pay the price for the weather and life just isn't too easy.

I decided to look around for I heard that prices have decreased steadily the past year on homes in the Concord area. As I pulled up to a few homes I thought ah this one has potential in a quiet neighborhood and with a decent yard, probably .16 acres let's see the price. The sign indicated price reduced, something that you'll find just about on 90% of the signs. As I picked up the flyer I started to read the marketing points on the home. Bright and warm home with 1460 sq ft - check, larger yard - check, newer appliances - check, 3 bedrooms - check, 2 baths - check, close to everything - check and priced to go at only $500,000. Yipes! In doing some quick math even if we were able to get a FHA loan with 3% down we are looking at approximately $3000 per month and that's before the $5000 annual taxes and insurance. Woh not the lifestyle we would choose. The funny thing is that the same home would have cost $580,000 about a year ago. The stories indicate that these homes are now bargains and compared to  a year ago probably but in the name of health, family and stress I still don't think so.

We love visiting with our friends and family. It's a beautiful area that's for sure and hey we used to live there. Would I trade the pretty good weather, the more relaxing lifestyle and the affordable living for it? No way! While it's true that salaries are generally 30% higher in the Bay Area the prices for homes are still 100% higher for comparables. You know I sometimes think of the Treasure Valley as a mini replica of the Bay Area but without the stress level. More on this below.

The thought of 2000 sq ft, 4 bedrooms, 3 baths, .25 acre lot for my dogs and family to enjoy for $250,000 or less is just too good to pass by. It's hard to find this for less than $800,000 and we wouldn't even qualify for the mortgage payments by today's lending standards. I'm not sure how people are getting into these homes.

Our trip is almost over and we are looking forward to returning home to a more simple, less stressful lifestyle. I suppose that's why many people do end up in the Treasure Valley area too.

Despite one of the worst winters in the past 20 years the Treasure Valley area offers families the chance of a more relaxing and affordable lifestyle. The weather by the way is pretty fantastic. Compared to Northern California it's usually just 10 degrees cooler in the winter time and it's mostly sunny and warm from May through the October months. There's so much to do and with the mountains, biking, camping, skiing all so close by that too is comparable to Northern California.

More great restaurants open weekly and for families looking to get out and meet people it's probably much easier here. Generally people are nice and approachable something that I never really felt in my years living in California. It's not that I didn't make the effort too but after saying a simple hi to hundreds of people and not getting a hi back in return I knew it just wasn't the place for us to raise our family.

Our neighbors in Meridian are great! Our kids are having so much fun meeting people and going over for play dates. There's always something going on whether in Boise, Meridian or Nampa for us to check out. There's great places to live throughout the Treasure Valley and if you are looking for a mini mansion of say 2500 sq ft the cost in Northern California of $800,000 plus will only be $300,000 in the Treasure Valley area. So click on the links such as Things To Do  and let us know if you have any questions at all. We love it here and sometimes we need a little reminder in life of just how lucky we are to be here.

Despite the price reductions on homes in an all ready crowded market we are watching many sellers list their homes overprice from as little as $10,000 over the market value to as much as $200,000 over value. We urge anyone considering purchasing a new home to make sure you see the recent sold comparables. Homes usually won't appraise for 15% or higher than what the comparables indicate unless it’s truly a one of a kind home that simply can’t be found in the same subdivision.

We feel so strongly about this topic as it’s impacting many sellers and buyers too. We believe it's a combination of homeowners not accepting honesty as related to today's buyer's market and it’s partly due to some agents indicating they can get the price you desire despite the reality. Sellers maybe stuck in the hot seller’s market years especially between 2002 and 2006 when home prices skyrocketed in many cities. However as agents it's our job to point out what's going on today and to show the comparables. Honesty hurts but so does pricing the property too high and losing the home because of it.

Tami and I have turned down 3 listings in the past month because we believe it would have hurt our clients. In all 3 cases they wanted to price the home at $15,000 or higher above the comparables. In 1 case the sellers were too upside down (owed more than the home is worth) so we told them to try and refinance the home or we could look at a short sale option on the home. On the other 2 homes the sellers wanted to move but they were not in a have to move situation. Other agents accepted these 2 listings and now the homes will sit until the owners reduce the prices to what we recommended or they cancel the contract. Selling 120 days from now is dangerous as there’s a risk of a further reduction in value from homes that are being reduced even more in the area. Price it right today ahead of the curve to sell it today!

Some agents will take a listing no matter how high the asking price. In one neighborhood in Meridian I'm seeing homes priced $40,000 to $200,000 too high. Incredible! One example is where home sales show the value to be $122 to $129 per square foot for 2200 square feet but yet there’s a home listed at $150 per square foot. So the home will sit for months until reduced. I really hope the owner doesn’t risk damage to his or her credit through a short sale or foreclosure. I know that I should not get so emotional about this but we do really care about helping people and doing what’s right!

To be fair in many cases the owner(s) of the home will shop around until they find an agent that will ignore the comparables and take the listing at their price. The outcome of this is that the agent benefits by having their sign and phone number on your lawn so that other people interested in the property can call them. Once they take their call they may end up showing other homes in the subdivision or nearby that is priced properly. In this scenario the competition and the agent benefit, while the home overpriced sits and the homeowner becomes frustrated. Eventually the homeowner goes with 1, 2 even 3 more brokerages until the price comes down and the home is sold.

If you want to sell your home in the next 60 days price it right and be willing to go even lower to stay ahead of the curve. Look for agents that show you the comparables, that promise to market the home through cross platform marketing and that have your best interest at stake. See our Sellers Alert! Price it fairly or consider not listing it at all!

Dear Homeowners,

One rule of thumb when using us is that we will turn the listing down if it's not in your best interest. If you find yourself in a situation where you must do something to either reduce monthly payments or move out of the area but the home is not worth what you owe, we suggest to either look into refinancing or possibly rent out the home rather than risk the chance of a foreclosure. The other great option maybe a short sale but this might damage your credit, although not to the degree of a foreclosure.

Knowing your options is key. Turn to people you trust and don't get blind sided by lower listing commission fees, not so honest gimmicks and someone making empty promises. Research, listen and even get a 2nd or 3rd opinion. Helping you should always be the #1 thing! :)

I like to read articles and comments on newsworthy items especially those dealing with real estate in the Treasure Valley area. It’s sometimes difficult to hold back posting responses to people that have formed very negative opinions, often based on perhaps previous experiences.

The other day there was an article about a new tour bus called the “Treasure Valley Repo Tour Bus” that was taking pre-qualified buyers along with real estate agents to foreclosed homes in our area. The tour was organized by local agents hoping to gain some clients and I’m sure garner support to sell these homes. Some readers of this article found it tacky for new homeowners to try and purchase these homes from the less fortunate. A few readers issued blame over the market mess on everyone from the mortgage lenders with the crazy adjustable rates to real estate agents that were perhaps eager to upsell a home without taking client’s needs into account. Some also blamed the investors for buying so many properties during the housing boom causing further equity increases and making if more difficult for natives to purchase at affordable rates. Not one to pass blame I’d rather focus on helping people in both situations, homeowners looking to market and price their home successfully and new homeowners looking to obtain a great home that more than meets their needs. However….

A few comments questioned the integrity and character of real estate agents. Usually I would ignore such comments knowing that not everyone fits the stereotypes mentioned. Tami and I are working with great clients and we are always making sure we look out for their needs. This sense of peace is wonderful, however this time I felt the need to let some readers of the article know that it’s wrong to classify all agents under a stereotype.

Here was my response:

Wow so much angst against real estate agents. Not all agents are the same! It’s just a shame that a minority of agents or perhaps people that have encountered a bad experience add to the negative stereotypes that persist. Yes I’m an agent and I constantly fight the stereotypes that so many people share with Reddog. Fortunately when people meet me, get to know what I’m about and how I operate my business they realize that I’m there to help them navigate, negotiate, resolve the various conflicts that come up and get around some of the sometimes tricky points in the process.

Someone made a comment about why would an agent work to negotiate a better price for a client when it simply adds to the commission. My answer is because it’s in the best interest for the client to obtain a price that relates directly to a comfortable monthly mortgage payment. If it doesn’t feel right don’t do it. Look at things like the property history, recent comparables, location along with equity trends for the subdivision and area. When a client tells me they want a home for 200k. I don’t show them homes for 220. In fact I look to get them the lowest possible cost for a home that really meets their needs and feels right both in quality and payment. Some people would say I’m down selling and maybe in a way I am but if it’s not right for the client then I won’t do it. I know there are other agents out there like me but unfortunately the sharks are the ones that leave the lasting impressions.

----End of comments----

Maybe I could have provided recent examples of price savings of 5% to 10% below the asking price. When we represent buyer’s we do so in part by doing all the research and negotiating for the best price possible. Negotiation and representation is key and many people don’t understand this thinking and opting to go at it alone for what they believe will be additional savings. When people form these opinions it can be very difficult to change their minds. What follows is an example that I hope any potential homebuyer will consider.

I’ve worked with clients that couldn’t stand agents or at least they thought they couldn’t. Now many clients have become great friends of mine. I’ve also had customers believe that if they entered negotiating on their own they stood a better chance at a bigger discount. The flaw with this way of thinking is that the commissions are negotiated as a total of the purchase price in advance with the listing brokerage. For example if the listing brokerage negotiates with the seller(s) for 6%, 5% or any other negotiated percentage that agreement is in place whether the buyer purchases directly from the seller or not. Therefore if a purchase and sale agreement is made without using buyer’s agent representation usually the listing agent will take the full 6% that is due to the brokerage. Remember the listing agent of the home represents the seller(s) and it’s their goal to obtain the highest price possible, the one closest to the asking price. Having an agent representing you will help to obtain a lower price as they are representing you and your best interests.

Great agent representation involves many of the points below and this is why it’s important to have representation in any real estate purchase:

• Knowing the full property history as done through research
• Seeing how many days on the market for many homes are relisted by agents. Knowing the true history of the home can help negotiations.
• Pricing history including reductions
• Providing accurate comparables
•  Looking within the subdivision
• Also seeing outside the subdivision
• Negotiating price with agent or with seller depending on listing requirements
• Similar to a game of poker and often the key is to try and figure out the seller’s motivation
• Scheduling a tour and showing the home but not in the way you may think
• It's not just about opening a few doors it's about pointing out items often not seen by the potential homeowners and often saving time and frustration.
• Use discovery points toward negotiation
•  Being patient with customers, clients, other agents, vendors & more
• Working with people not against for common goals
• Determining possible solutions instead of just running away
• Reviewing all documents and catching mistakes
• From contracts, addendums, contingencies and even HUD statements mistakes that can save you thousands can occur and great representation helps avoid these mistakes

These points are just a few items that go hand in hand with great representation. It’s not a conclusive list for there are many other items that come up during the entire process. Having a great title company and lender also add to the purchasing process but this has been covered in former blog posts.

If you know someone that is planning on purchasing a home now, in a few months time, or even years from now please tell them about our services. We are there for our clients and we will be there for you, your friends and your family too! Let us know if we can help you in any way.

Does selling a home in today’s market make sense? Many homeowners assume that when they need to relocate to another area or to upgrade or downgrade their housing the wise thing to do is to sell the home. This makes sense in a strong housing market when there’s either a balance between supply and demand or when it’s a seller’s market but in today’s market it may not be the best decision.

In many areas there’s gluttony of homes, which will take a year if not longer to market and sell. High inventory coupled with a lower demand is generating many price reductions and the potential for a huge loss in home equity built up during the housing boom the past several years. Weighing alternatives makes sense, and then if a homeowner decides to move forward reviewing marketing strategies will help.

Alternatives:

1) Keep living in the current home: If monthly payments aren’t an issue perhaps consider staying in the home for another year or two… until the market correction promotes an increase in equity and reduces the current supply. Taking on a few projects such as upgrading some flooring, fixtures, landscaping, painting and clearing clutter during this time may help to increase the value of the home. Getting prepared over the next year is advantageous to obtaining a higher price.

2) Reduce payments through refinancing: If monthly payments are too high talk with your current lender or inquire with a new lender about reducing the payments through refinancing. If the goal is to market the home in a year or two from now consider refinancing to an ARM. It’s not such an ugly word depending on the situation and the type of ARM provided. Look for no penalty on prepayments and make sure there’s no out of control increases over the next few years. There are many 5/1 ARMS, which means 5 years at a fixed rate and then yearly adjustments. Talk with a lender to find out more information. Contact us as we can provide you with a few lenders our client’s work with as well.

3) Consider renting the home: If you must relocate now and you realize that the home may not move quickly consider renting the home for 6 months or longer. This option is a great one and often will provide you with the opportunity to purchase another home. Lenders consider a percentage of the rent collected on your current home in calculating the debt to income ratio. In cases where the rent doesn’t cover the mortgage it maybe considered an operating business loss on your taxes. Consult with your tax advisor and lending institution to see how this works and to make sure it works in your favor. Homeowners can either collect rent and manage the property on their own or hire a property management company to find renters at a nominal fee ranging from 6-10% of the rent. The company will collect rent and manage the property. We work with several management companies so let us know if you’d like their names.

Marketing Tips & Strategies

After reviewing the alternatives and deciding that marketing the home would be best here are a few marketing tips and strategies to consider. Homeowners face a tough decision whether to market their home as for sale by owner or to market it with a real estate company. Motivation comes in many forms from cost to customer service, from timely results to customer service. Customer service is mentioned twice for it’s probably one of the most important aspects to marketing a home. Timely results can be achieved but when coupled with poor service comes the stress and confusion often causing a greater cost than it was worth. The public is bombarded with advertisements, claims, gimmicks and strong personalities all in a hope to win business. The truth is that it’s a combination of factors that help to successfully market a home. Often the fundamentals are overlooked. Here are a few to consider.

1) A well priced home (at or below comparables) #1 factor to consider

2) Exposure through cross platform marketing

a. MLS entry for potential buyers and agents to see

b. Signs, well designed flyers highlighting the excellent features

c. Internet advertising through various web sites not just one or two sources. The home must be promoted to it’s full potential.

d. Pictures, pictures and more pictures

e. Visual Tours online and promoted properly

f. Print media (newspapers, magazines, etc.) comes with a word of caution as there are so many books with so many homes often the property is lost and never really seen from this format

3) A clean and attractive home. Past blog topics have covered this topic well but clearing clutter, adding flowers, new paint, updating fixtures and having the home show well is important.

4) Customer service is of utmost importance! When marketing the home please do consider many of the things that go into providing excellent customer service. Customer service items to consider include:

a. Communicating with all potential buyers, buyer’s agents, other agents

b. Negotiation of contract including inspection and other contingencies

c. Active marketing as until the home is sold this never stops

d. Adjustments to price and marketing strategies

e. Keeping homeowners informed and working out plan with your input

Potential buyers need to know your home exists and to have a reason to want to view the home before they even consider purchasing your home. It’s about pricing the home properly, promoting the homes features, gaining exposure from various sources and providing excellent customer service throughout the process. Remember all it takes is one good offer from one solid buyer. Consider and review all the marketing tips and strategies to provide advantages. Interview agents and see what plan works best for you. Contact us for any support and let us know how we can help you.

Short Sales A Great Option Maybe Plus a Warning on Gimmicks

A very popular alternative to foreclosure is the short sale. A home is subject to a short sale when the lending institution (bank) maybe willing to accept an offer on a home that is less than what the current owner owes. On most of the newer homes built in the past 5 years or so the costs for banks on foreclosures usually runs round 30% to 40% of the current balance owed. The costs for the bank adds up as weeks become months without seeing incoming payments. If the property goes through the entire foreclosure process to auction then they are looking at more than 180 days. Factor in advertising and the risks of receiving even lower value or no offers for the home and you can see why they may take $220,000 on a balance of $240,000 to move the home quickly.

The Treasure Valley area is seeing plenty of short sales lately more so than foreclosures. As buyers continue to search for what can be a great deal in today’s market they often encounter multiple offer situations. My wife’s colleague had put in 2 offers on short sale homes in Tuscany Village in Meridian only to be rejected on both due to higher offers.

Here’s one scenario that I think is worth reviewing. Say you find a home that you absolutely love and the asking price is $220,000 based on a short sale subject to bank approval. Have your agent run the comparables for the subdivision based on the recently sold homes to see the value. Next have your agent call and see if offers currently exist on the property. If no offers have been made and the property is already under value by 10% or greater consider offering close to if not asking price. I know it’s tempting to offer an even lower amount but what usually happens is the bank will reject the offer, wait for another offer to accept or worst stall for a few weeks until other more reasonable offers arrive and accept one of those or issue multiple counter offers. The more realistic the offer the greater the chances are for success.

To further review the short sale process here are some points to consider:

• Short Sales
• The Good
• Could purchase a home for less than market value (possibly 10% to 20% under comparables)
• The Bad
• Working with banks may take long time to get back with you. It can be typical for a bank to take 2-3 weeks to respond to your offer.
• May have multiple offers in which they counter all parties and price becomes closer to market value or possibly higher
• Fast closes are not the norm as it usually takes 45 or 60 days so if you’re in a hurry it’s probably not the way to go
• The Ugly
• These properties are usually ‘As Is” so it’s important for your agent to know the proper phrasing to use when writing the offer pertaining to inspections. Ensuring your safety and that you have a possible exit strategy goes a long way and can save you thousands of dollars and headaches.

The past 2 weeks I’ve made several calls on behalf of my clients on short sale homes they were considering purchasing. In all cases where these homes were under current market value by 10% or greater multiple offers were received. It’s important to be ready to act fast. A few things to consider doing include receiving automatic email so that you see the property right as it becomes available. This way you can view the home with your agent quickly and make a fair offer. Also noteworthy is that with these short sales approval letters are due with the offer to purchase the home. Meeting with a lender in advance and obtaining this approval letter for your agent to present will be very important.

On a different topic to touch on quickly there are a number of gimmicks popping up through classified and print ads dealing with everything from special finance options to self-promotion through claims and promises that are very difficult to verify. There’s the classic saying that if it’s too good to be true it probably is. This applies to real estate too. In researching several claims I’ve found them to be completely false. Please proceed with caution when facing anyone or any item that appears to be bragging, creating hype, or appears to be misleading.

Trust and integrity is out there. It’s a shame that the minority of people that will do anything to get ahead give the majority a bad stigma. There are stereotypes out there that are unfair for the majority of agents. To read more see my blog from last June:

Breaking Down 7 Popular Stereotypes of Agents

Looking for an excellent agent and don’t know who to trust? Meet the person, listen to the person, see the marketing plan (if looking to sell your home) and see if they have your best interests in mind. Remember it’s always about you and not us. I guess our gimmick if you can call it that is simple: You’re The Focus & Our Client’s Needs Always Come First!

Need any help at all? Give us a try and let us help you today.

In the Treasure Valley area where it seems you can’t throw a rock in a semi crowded room without hitting an agent what’s really important in locating the right agent for you?

I have some thoughts on this question that I’ve touched on in the past but I’d like to elaborate on this a bit more. I’ll also touch on 2 more topics selecting the right title company and loyalty.

Knowledge – The right agent must not only know the housing market but how to navigate through the contracts of the trade, analyze and present accurate comparables on properties and reveal hidden details usually unknown.

Intention – Agents must put their client’s needs first and not their own. Doing what is right for you and your family includes: not pushing you into another price range (known as an up sell) and showing you homes in areas that meet your families needs rather than what the agent likes (commonly known as steering). An agent’s intention speaks volumes.

Follow up – Making sure the lines of communication remain open and there is a clear understanding of the client’s needs, whether marketing their home or finding a new home for their family.

Achieving Results – There are some agents that present gimmicks and statements in an attempt to gain business. A bit of advice -- all that matters is the end result. Meet the agent and listen to what he or she says. Rather than listening to an agents “I statements” listen for the “We statements.” Achieving results are based on forming a partnership and a relationship to meet your needs. Working as a team the lending industry, the title company, you and your agent should all be on the same page to achieve the results needed in finding you the desired home and having it close properly.

We have had many clients say how fast can you get my home sold? An honest agent will tell the truth which is we don’t know. We are people just like anyone else. Agents must not set the price; the comparables help set the price. Agents must not indicate a time frame for a home to be sold, especially in today’s buyers market. There’s simply too much inventory out there. Our efforts will only go a long way if the home is priced properly in a good location and if there’s a buyer to purchase it. Finding the buyer is part of our job through actively marketing the home. If an agent says they always sell homes faster than their competition before you decide whether to use them ask to see their marketing plan.

Trustworthy – Select someone you feel comfortable with that will work hard on your behalf. Reading people is important and sometimes it can be very difficult. Remember we, as agents are not all knowing beings. We are human beings, fathers, mothers, husbands, wives, and parents just like you. We don’t know it all but we work with you and for you to achieve your end results. How we carry ourselves and how we interact with you and your family helps determine whether or not we earn the much-needed trust we must have in each other.

Customer support – An agent working for you is going to be there when you need them. Taking days to return your calls is simply not acceptable. Find someone that is working for you all the time and that will appoint someone such as a partner or colleague for when they are not available. Someone that keeps you posted even if just to check in and relay information is key. Some agents just don’t have the time to really give 100% to their customers. Before making a decision ask the agent what are their phone hours and how they plan on providing you with updates. Is real estate a hobby for them or a career?

Speaking of careers the Treasure Valley has a number of title companies and selecting one to handle your home purchase is of the utmost importance. Title companies often save home purchases. A home is not considered sold until the all paperwork is signed, the lending has funded and the deed has been recorded with the county assessor’s office. At any point along the way hundreds of things can and do often go wrong. Having a competent agent is only half the battle. The title company can resolve many problems that are out of the lenders and agent’s control. In the Treasure Valley we have several title companies available with wonderful escrow agents and all of them want your business. However, we have found that when push comes to shove there’s one escrow agent that has done an outstanding job for us.

On a recently closed home transaction Anne Slayton with LandAmerica Transnation performed magic. The sale came into trouble when a Liz Pendens (Pending Litigation) was filed and did not show up in the preliminary title report. On the day the deed of the home was to record title received a call informing them of this pending litigation.

Lawyers were involved but Anne worked hard to resolve the issue by providing the proper paperwork, making the follow up calls and keeping all the agents and clients informed along the way. It was incredible for we thought for sure this particular sale would fall through leaving our homeowners back at square one. Anne’s loyalty and dedication to her job and her clients, along with her expertise in handling these tricky situations came through for us all. I’m happy to say that our clients are now living in their new home.

Another topic of importance is the loyalty developed between the customer and the agent. Sometimes customers are persuaded to leave their current agent for another. (See blog post called “The Real Estate Signage Game”). Agents often encounter this after putting in many hours of research, touring, negotiating, marketing, holding open homes and more where the customer cancels the listing, changes agents or even vanishes without a trace. It’s a relationship that demands patience, determination, understanding and loyalty.