What Is Title Insurance?

Good question. Just about every time real estate changes hands bother the buyer and the lender get a title insurance policy. If there is a lender involved, you have to get title insurance. Title insurance companies (i.e. First American Title or Title One) also have an escrow department that helps facilitate and close the transaction. Anyhow, title insurance covers the buyer from the day of closing back into the past (forever into the past) and insures that the title is clear and can be sold. Once in a while we hear of a news story of a forgery where a property was actually sold. This protects the buyer and the lender from someone coming out of the woodwork who has an interest in your property. The bank would not like that. There is also an upgrade available that First American has called 'the eagle policy.' This is a gem. It usually runs less than one hundred dollars and protects you into the future against things such as boundary disputes, permit violations, CC&R and ACC violations, unrecorded contractor liens, and many more bad situations. Now some of these things have a deductible, but it's a great policy. I always recommend this for all my buyer clients. Especially for new construction. With all these builders going under, you need this extra protection that all subcontractors got paid and that everything was done to code, etc. Also, if you sell your home within 2 years of when you purchased it, make sure to tell your title company. They give a discount. And, it doesn't matter if you are closing at a different title company, they all honor the price reduction. This is good because here, typically the seller will pay for the buyer's policy (the more expensive one) and the buyer pays for the lender's policy.

Information on schools in Idaho

How about a website with links to information on schools. Elementary, Jr. High, and High-schools. There are also good links about recreation, business, area, etc. Other schools not on the list can be found in a google search. People are always asking me for this information and this is a valuable resource for you. More later -
-Justin
http://boisehousehunting.com/boise.html

Also, our unemployment is ultra low, well below the national average. What a great reason to relocate here, from out of state or from other parts of the state. The growth here over the next 10 -20 years will be phenomenal.

Don't forget McCall, Idaho is just 90 miles North of here. All mountain sports, golf, camping, everything is there. Check out New Meadows, www.tamarackidaho.com, and www.brundage.com.

Opps.. I ran out of time. Next up is title insurance. What and why? Sign up for real-time MLS access (search homes) at www.boisehousehunting.com .

-Justin

Market Inventory. Great News For Buyers!!

Let's look at the numbers once again. I have added a column for pending sales. These are not figured in when we talk about inventory (# of active listings / # of sold listings in the last 30 days) of single family homes. Here we go... remember that the sold column is the past 30 days and the supply column is in months.

City/.......Active......Sold............Pending........... Supply
Boise........2497 ..........278 ..............330 ..................9.0
Meridian..1374 ..........120...............155.................. 11.5
Ada .........4959 ..........474 ..............575.................. 10.5
Nampa.....1627........... 136...............164...................11.9
Caldwell...1079...........116...............141....................9.3
Canyon.....2625...........244..............292...................10.8

So it looks like the market time has indeed been pushing up. It's interesting to note that in all cases, the pending number is greater than the number of solds in the past 30 days. Start looking. Goto: www.boisehousehunting.com and start searching today. -J

Buyer's

Is our market about to plunge like in other cities? We are probably poised for something. I have seen some incredible deals out there for buyers. Simply incredible. Don't sell, don't move unless you have to. Now is hold time for the next 3 - 5 years. If you make it there consider another 10. We are sure that the avg. hold-time across all homeowners is shrinking. What was 5-6 years is now less. The market changes rapidly. Do you know about short sales? Very complicated. We'll get into that later.

How do you make it cash flow? A lot of it just won't anymore, unless you pay cash. But I thought the point is to layout as little cash as possible and leverage a large amount of money. I would rather buy investment property with %10 down and take a small negative cash flow than have to put down %20 or more to make it break even each month. For example on a $175,000 purchase price, %10 down is $17,500. Now say I was negative $200 per month on the rent I collected. It would take 87.5 months at $200 to add up to $17,000. This example used to work better for zero down or %5 down, but you can no longer do that on investment property without a giant hit to your rate. Luckily you can still buy zero down on your primary residence, your home. If you don't know about IHA, go here www.idamortgage.com . The rates are incredible. Great for first time buyers and bother first time home buyers and previous owners in Canyon County only. Find out about it.

Don't forget to get accurate market data, especially in a stalling or sliding market.

No End In Site to Idaho's Growth

BOISE — With all due respect to Phoenix, Las Vegas and Orlando, the heart of American's biggest economic boom is right here in Idaho.

In Idaho, the state with the nation's fastest-growing economy, homebuilding hasn't crashed as it has across much of the USA, and a two-decade run of prosperity continues.

Chalk it up, in large part, to chips — computer chips and potato chips. And to a state whose climate and rugged outdoor beauty are attracting highly mobile, white-collar newcomers who could work or live most anywhere.

Idaho has drawn national attention from the recent sex-sting arrest of Larry Craig, its senior U.S. senator, and, in the 1990s, from occasional standoffs between law enforcement and white supremacists. What's less known is that Idaho has been competing with Arizona, Nevada and Florida to be the USA's most vibrant boom state. And unlike those hot-weather states, Idaho is having a boom that shows little sign of fading.

Idaho has been tops among states in economic growth since 2003. It has ranked high nearly every year since 1987, a run of good times unmatched by any other state. Even the recessions of 1991 and 2001 didn't stop growth.

FIND MORE STORIES IN: American | Arizona | IDAHO | Resort | Wyoming | Boise | Coeur d'Alene

As the state motto says, Esto perpetua: It is forever.

Idaho's growth is remarkable because it has no single cause.

Idaho — unlike its prospering neighbor, Wyoming — doesn't have oil, natural gas or coal, although hydroelectric power is abundant. The state hasn't tried to woo industry with big tax breaks and subsidies. "We don't play that game," says Republican Gov. C.L. "Butch" Otter, a former executive with agribusiness giant Simplot.

Idaho's economy has clicked in every sector: farming, technology, tourism, construction, service industries. Big business has thrived, and small entrepreneurs have, too. The state has a 2.4% jobless rate, the lowest in the nation, and has added jobs every year since 1987.

"We've had a spectacular economic run for two decades," Idaho state economist Mike Ferguson says, "and I don't see it ending any time soon."

Three-way bonanza

Why Idaho?

"We've scored a triple play," Ferguson says, "and two of those plays are chips — computer chips and potato chips."

Semiconductor maker Micron Technology, based in Boise, employs 9,000 and has spawned other high-tech businesses. Hewlett-Packard's printer division is headquartered here, too. Computer-related manufacturing has been the fastest-growing sector in the state's economy over the last decade.

In the field, potato prices are high, which is good news for the nation's No. 1 potato producer. In an era of fast food, the spud is the great American vegetable, especially when fried.

The third ingredient in Idaho's boom has been the "amenities business" — hiking, hunting, fishing, skiing, whitewater rafting — that attracts tourists and new residents, from billionaires to young outdoor enthusiasts.

The federal government owns about two-thirds of the land in Idaho, mostly national forests. The state has 21 million acres of roadless wilderness, about the size of South Carolina and more than any state except Alaska.

The weather's good, too. Coeur d'Alene in northern Idaho has an average low temperature of 22 degrees in January. By comparison, residents of Fargo, N.D., endure average lows of -2 degrees in January, despite a more southerly latitude.

"We've got a true four-seasons climate here, and that makes our business model work," says Jim Spence, vice president of the new 2,100-acre Tamarack Resort in Donnelly, Idaho.

New condos, homes and commercial buildings there have sold out quickly. More are under construction. The national construction slowdown hasn't stopped optimism in Idaho. "We're not postponing anything," Spence says.

Idaho isn't immune to economic bumps. Micron has laid off 1,000 workers since June. Meanwhile, wages statewide average just $32,500 a year, about 75% of the national average. Income inequality has increased as wealthy out-of-staters have moved in, keeping the economy rolling but not driving up overall wages.

Idaho isn't the only place in the Rocky Mountains and Pacific Northwest enjoying a boom, says Gary Smith, director of the Pacific Northwest Regional Economic Analysis Project. In Bend, Ore., and Missoula, Mont., imported wealth is remaking the economy.

"What's different about Idaho," he says, "is that it's a whole state."

A hunger for acreage

About 300 miles east of Boise, potato farmer Ray Hess of Ashton is building a road on a neighbor's property. The land has been sold, and big houses are coming, on lots of 40 acres or more.

Hess, 58, understands why people move here. "I'm sitting here in my truck. The weather is beautiful. I'm looking at the Teton Mountains. Of course, people want 150 acres in heaven!" he says.

His hometown used to be lined with pickups and farm supply dealers. Now, it's full of expensive sedans and cute boutiques. Hess has to drive 30 miles to buy farm equipment.

"The billionaires have chased the millionaires out of Jackson Hole (Wyo.), so they've come over the hills to the Teton Valley to live with us," Hess says.

He isn't complaining. A friend recently sold 4,000 acres nearby for homes and a golf course. Hess owns 3,000 acres. If the right offer came along, he might sell, too.

"I'd keep the old homestead and 20 acres," he says. "But my kids would probably sell that when I'm dead. So be it."

Like most in Idaho, Hess welcomes the population growth — or at least accepts it.

Idaho's population grew 13.3% from 2000 to 2006 to 1,466,465. That's twice the national growth rate. Idaho's Hispanic population has doubled since 1990, to about 10%. Boise has two Spanish-language radio stations.

The average of about 30,000 new residents a year is small compared with Arizona or Florida. For Idaho, however, it's like adding a major city every year. In 1990, only Boise Falls and Pocatello had more than 30,000 people. Today, nine cities are that big.

"We like to see ourselves as a rural state, but we really aren't anymore," says Carole Nemnich, manager of an annual survey done by the Social Science Research Center at Boise State University. When the survey asks newcomers why they moved to Idaho, the top answer is clear: quality of life.

The newcomers generally are wealthier and more educated than longtime residents. The state is slowly becoming less conservative — but not necessarily more liberal.

"The move is to the center," Nemnich says, "and a strong libertarian streak makes it hard to categorize the state."

Environmental concerns have moved near the top of the agenda because fishers and hunters — the "hook and bullet crowd," as pollsters call them — align with liberal environmentalists on many land-use and pollution issues.

This has put some industries, such as mining, and some developers on the defensive. A Canadian company now is facing an uphill battle to get state approval for a cyanide leach gold mine on a fork of in the Boise River.

"Thirty years ago, that mine would have opened no problem, business as usual," says Rick Johnson, executive director of the Idaho Conservation League, an environmental group. "Today, people view the river itself as far more valuable than whatever a mine can produce."

Blending suburbs, landscape

Suburbanization has proved a trickier issue than preserving rivers and wilderness.

The foothills surrounding Boise, the scenic signature of Treasure Valley, are mostly privately owned. The building of houses on the foothills is lucrative and controversial, a conflict of property rights vs. the look and feel of the region.

"People think they're entitled to open space that they do not own," says Nate Mitchell, mayor of Star, a fast-growing town near Boise. "I like the foothills, but I'm not romantic about them. We have legal descriptions in America for good reason: so we know where my land ends and yours begins."

Mitchell is planning for Star to grow from 4,000 residents today to about 30,000 when it's built out. "Government's job is to facilitate what land owners need, not to choose where people live," he says.

In Eagle, the town next door, Mayor Nancy Merrill is trying to preserve the undeveloped look of the foothills. "We should look at the foothills and not see homes everywhere," Merrill says. Her city is trying to encourage high-density clusters in the valley and little or hidden development in the hills.

She expects her town to grow from 18,500 today to about 60,000 over the next few decades. "Growth is going to happen and that's good, but we have a right to manage development," she says.

The increasing value of land and homes is changing the state in small and big ways. Newcomers, for example, expect prompter fire and ambulance service than volunteer departments provide.

The state experienced serious fires around Sun Valley this summer because of a drought. More than 1,600 firefighters battled the blazes. Forest fires can't be allowed to burn themselves out in areas full of expensive homes.

"We don't like to admit it, but Idaho is becoming a little more like everywhere else," says Johnson, the environmentalist.

Developer Doug Fowler believes he has a way to let Idaho grow and keep its identity.

He's turning one of the state's most valuable pieces of real estate — the 1,297-acre Harris Ranch, within Boise's city limits — into an upscale, eco-friendly community. His development will have 2,800 homes clustered on 358 acres. The rest will be left untouched, or even improved by the restoration of native prairie grass.

The scenic foothills will not be developed. Bald eagle habitat will be preserved. The river that runs through the ranch will remain pristine. The developer even plans to keep a few head of cattle grazing on the land for symbolic reasons.

Fowler believes he can make more money giving people the Idaho experience — rivers, fishing, open space — than carving land into cul-de-sacs and quarter-acre lots.

He's betting people will pay a premium (and extra homeowner fees) to live in a small-town setting where eagles fly overhead and trout fishing is a short hike away.

The first lots, among the biggest and most expensive, will cost about $300,000.

"Economic growth has presented us with a great opportunity," says Rachel Winer, executive director of Idaho Smart Growth. "We're on the tip of the iceberg, and it's not clear which way we'll tip."

UPDATED 11:48 a.m. -- Job growth boosts Treasure Valley ranking in economic poll

Strong job growth between 2004-2005 helped the Treasure Valley jump into the top 20 in the 2007 Milken Institute / Greenstreet Partners Best Performing Cities Index released his week.

The annual index, which ranks metro areas on their ability to create and retain jobs, showed the metro area in 19th place last year, compared with 32nd place in the 2006 index.

For 2004-2005, Idaho also ranked first in the nation in job growth in 2006, as employers expanded their payrolls by 6.2 percent.

The report said the economy in the Boise/Nampa metro area was fueled by job creation in the high-tech sector.

Since the report was prepared, however, Micron Technology Inc., Idaho’s largest employer has laid off 1,100 employees. The top spot in the rankings went to Ocala, Fla., which jumped from 13th to first in the 2007 report. Among Intermountain states, Salt Lake City jumped from 87th place a year ago to 18th, or one spot ahead of the Boise/Nampa metro area.

The Provo/Orem region south of Salt Lake City went from 23rd a year ago to eighth in 2007, while the Las Vegas/Paradise metro area rose from 11th to 9th place.

Wow!

It's been so long since I posted. I guess that is a sign of how busy I am, but not an excuse. How is the market? Everyone wants to know. Seems fairly stable. Take a look:

inventory city months supply
BOISE 6
Ada 7.3
Meridian 8.8
Kuna 5.89
BOISE <$250K 4.3

so... hanging in there a little bit of rise and fall action but generally stable this year.

Relocate! Get Representated!

Hi Again,

People are always asking how is our market. I am so happy that our market seems to be holding steady while other states are having a difficult time. I see there is still interest from people relocating and my business is stronger than last year! One thing I want to say, that I have mentioned before, is make sure that you are represented. If you call the agent from the lawn sign on a home you saw or go directly to the builder, you are not being represented and in fact you might get lied to or even worse. People often times think that going directly to the seller will save them money, but in reality it doesn't and the commission promised to the buyer's agent is already figured into the price when the seller agrees to list their home. SO you might as well bring your own agent (buyer's agent) to the table and it is free to you! So why not. For example while a builder's agent will look for ways to keep you in a deal you want to get out of, your agent would work to get you out of it. It just makes sense.

Summer Time!

Hi Everyone.

It's been a bit since I posted. Sorry about that. There has been so much talk about the flagging real estate market all across the country and even a derogatory article in the Statesman a couple of weeks ago. I run the numbers and I run them a lot. There is truth to some of this but not all. Firstly, everything over the $300K mark is subject to a sluggish market and heavy inventory. There is a lean towards a buyers market in the luxury home department and therefore it's a great time to purchase in the upper end. Under $300K and especially under $240K the inventory shrinks significantly. Boise's under $240K market is under 3 months. That is excellent. Not only that but if you price your home aggressively, it will sell in a week or three. I am seeing this in the valley and it is a sure fire way to get your home sold.

all for now.

Need a 3 car garage for under $175K? Close to Boise!

Hello Boise, Boise Boise! It's been a while since I wrote. Alas, although the market is slow for sellers, although the number in Boise seem to be better than Meridian or other areas, I have been extremely busy with buyers. This is one of my listings that I think is a spectacular deal. for $175,000 you get a 3 bed 2 bath 3 car garage single level home in Kuna with 1460 sq ft. Not to mention brand new carpet, fresh interior paint, vaulted ceilings, 3 ceiling fans, 1 block to elementary school, walk in closet and oval tub in master, fml dining or den. The seller has already reduced from the original price of $186,500 and that makes this one a great deal. Kuna is a great alternative to Boise. Just 8 miles south of the freeway, it still has that small town feel but is only a few minutes drive to the heart of Meridian or Boise. Also, it is still very affordable in comparison. If you are thinking of coming to Boise now is a great time. The buyer's market is still very evident and the selection of homes on the market is plentiful. Also, if you have some comments or would like to contribute to this blog, please feedback. Thanks and best regards - Justin

The Numbers Again.

AREA........active--sold-- supply
Boise..........1925---443--4.34
Ada............4230---757--5.58
Merid.........1315---200--6.57
Nampa.......1316---202--6.51
Kuna.......... 252----51---4.94
Eagle...........437----43---10.1

Once again, this is for single family homes. The categories are active listings, homes sold in the last 30 days, and supply of homes in months. Inventory is shrinking in most areas.

What if it doesn't appraise?

Sometimes a home won't appraise for the sales price. What happens then? Well there is a built in loop-hole in our purchase and sale agreements that states that if the appraiser can't find value, the buyer can back out and get their earnest money deposit returned to them. This is also to protect the lender, of course they are not going to get into an upside down deal. There are other solutions though. The seller can reduce the sales price to meet the appraisers value, in order to save the deal. You would think that they would do this for sure because they will probably meet the same problem with the next buyer, if there is a lender involved in the deal. Or, if the buyer really wants the home and the seller will not reduce, the buyer can come in with the difference in cash. Not a good solution. Who wants to overpay? Another thing to consider is that when you purchase for cash, you are not required to get an appraisal. The appraiser is hired by the lender and in Idaho it is customary for the seller to pay the appraisal. In a cash deal, the seller might not agree to pay for it, but it would still be wise to get one. I met an appraiser just this past week who will do a 'consult' for only $150 (rather than a full appraisal for $350-$400). This, like a home inspection, would be money well spent and could potentially save you thousands or more.

Good News Everybody.

It looks as though the inventory is shrinking! Ada County has a 6 month supply of single family homes, Boise has a 4.9 month supply, and Meridian is at 6.9 months. Hopefully things continue to firm up.

On another note, I wanted to talk about some of the drastic changes our area has gone through over the past couple years. With the increase in population (close to 100K, I think) brings an increase in commercial development. Commercial boom always follows a residential boom. Anyhow, so many new retail outlets and restaurants have popped up. One of my favorite places to eat lunch right now is Flatbread Community Oven in Bown Crossing. They have great and creative sandwiches and good pizza. If you have a sweet tooth, cross the street and take a peak at the candy shop and you will see some vintage candy that you haven't seen since your childhood. Also, I have been to Franco Latino several times. Mortimer's new restaurant is definitely worth a visit. Back to the development, it's good to see more commercial spreading out even in the Nampa area. Now we only need the ACHD to get their act together and get us more roads, wider roads, express ways, rapid transit from Nampa to Boise and so on. I know that our growing pains will prevent some from relocating to this area. To that I say, consider carefully where you have to commute to and try to either live close to work or reverse commute or travel during non-rush hour traffic. It's probably going to be a while until the roads catch up to the population (or never) so choose your home location carefully.

Don't Buy Directly From the Builder. It Could Cost You.

It's been a while since I wrote in here, but I will try to get back into the swing of things. The first thing I wanted to write about is dual agency. This is when you let the same agent represent both the buyer and the seller. Of course, both parties have to consent to this. Why would anyone do this? Good question. It seems like a great thing for the agent, but is it so good for the client involved? The seller might be able to pay a reduced commission, but for the buyer? What do they get? This happens all the time especially when a buyer goes directly to a builder to purchase a home. They are under the false impression that the builder will save them money if they don't use a buyer's agent, and were probably told so. So they agree and let the builder's agent represent them too. Although this is perfectly legal, I ask how can the seller's (builder) agent represent the builder's best interest and your best interest at the same time? It just doesn't make sense. Money wise, either the builder's agent gets paid double (called double ending) or the part of the commission intended for the buyer's agent just goes into the builders pocket. I saw some very bad behavior from builders during 2005. Now that the market is soft, I imagine some of builders who are in financial trouble are going to be desperate and it could be potentially dangerous to enter into an agreement without your own representation. I am not saying that all builders are dishonest. Even just the opposite, there are many here in the Treasure Valley who are honest and just making their living. In the big picture, cutting out the buyer's agent is not saving you any money and could end up costing you in the long run.

Buyer's Market For Now

Single Family Homes
Area ......sold in last 30days.....active listings...... month supply
Ada...............509............................3902............ 7.6
Boise............ 310 ...........................1827............. 5.8
Meridian .....129.............................1185............. 9.1

So, the slack may not be disappearing so fast. This is OK. A lot of good people have estimated that we have already hit bottom and this may be true, but maybe not. It looks like, for the time being we are still in a solid buyer's market. In fact, the last time I measured, which wasn't that long ago.... Boise had a 5.4 month supply and Meridian's was 7.2. So probably, it would be a good time to purchase new construction in Meridian. I think this is good news. I for one still have property that I want to purchase and this gives me some time to breath before the next up tick.

The Links

On the right side, I have placed some very useful links. Let's go through them. Firstly, we have the statistics page at our iMLS website. There is some useful information here, mostly comparing 2006 to 2005. It also breaks out the different areas and new construction vs. resale. It it a good source of information but it does not serve as a snapshot of what is happening now. For that, you need an agent.

The next link we have is to the Ada County Assessor online property information system. A lot of you have probably already seen this. It's a good place to see various detail about a property and a photo of the front side of the home. You can see current tax information about a parcel and even get an aerial shot of the neighborhood. All in all, it is an agent's good friend. I only wish Canyon County would get on board.

Next up, is a link to this area's MLS search. Go right ahead and knock yourself out. In fact you should probably bookmark this one.

This one is the same as the last, except it is for Mountain Central. Think McCall, Donnelly, Cascade, New Meadows, and some surrounding areas.

Lastly, here is the eAppraisal. This one is from Ditech.com and it is basic next to what zillow.com is doing, except this one 'works' in Idaho. I say that because the accuracy here is not always accurate. It's more of a fun toy, and you should probably think of it that way. Value is a delicate thing and it should probably be figured out by a human rather than a few lines of code.

McCall Idaho or New Meadows or Donnelly or

I think I am going to expand the geography of this blog to also cover Valley County and the surrounding areas. So many people think that McCall is out of range. Granted it is quite the expensive one, but there are some impressive alternatives nearby. For example, the town of New Meadows, is a 12 mile drive to the North and a bit West. I am seeing a good supply of 5 acre building lots for as low as $130K, with protective covenants! Now granted, 2 years back that would have run you about half that. Still, I think there is good value there, especially for building yourself a nice cabin in a great area. Otherwise, brand new construction can be found as low as $260K for 1400-1600 sq. ft. in Donnelly. Sounds like a pretty good second home set up.

Inventory

According to the Intermountain MLS data I harvested, we currently have a 5.41 month supply of single family homes in Boise and 7.2 month supply in Meridian. This is the time it would take to consume the current inventory at the present sales rate. What does this mean? If you are selling, it will be a great benefit to be as realistic on your pricing as possible. Homes that are priced right are still moving, but the majority have to sit for a while until they are willing to give up the foam of last year's equity and meet the market's price threshold. Others are simply pulling out, which could be the reason that some of the inventory numbers are shrinking, but also contributing to that number is a decrease in new construction starts. I hear a lot of people grumbling about the market and how its a bad time to do this or that. Savvy home buyers can make money in a down market, and you've probably heard someone say that you make your money at the time of the purchase. Also, if you are in it for the long term than a temporary dip in value should not be detrimental to your plan. Once the inventory shrinks to about 4 months, we have a more balanced market and what people would consider normal. There are still deals out there, you just have to sift through the rubble and you actually have time to think about your options, unlike when the market was red hot.