What is the real news?????

How is our market doing? Great question. Values have sagged here in the Boise metro area probably on average 10% to 15%. Some areas have held on better than others. I have noticed that Southeast Boise has performed exceptionally well as compared to the rest of the valley. Also Northeast Boise and North Boise are doing ok. So this is where the long hold reality about real estate comes into play. Not a lot of property is moving except the exceptional deals or the super-clean upgraded properties. Foreclosed (bank owned or R.E.O.) are plentiful, however a lot of them require investing in repairs, new carpet, paint, and general rehab. Some are left in exceptional condition and others are missing all fixtures and smell like pet pee. Interest rates are amazing right now. On Friday some banks were offering 5.25% for conventional purchases. Now keep in mind this is for great credit ratings (720+) with 20% down and all the fixings. There is financing available out there. The options are less attractive for investment purchase and refinance, but I found a bank that is offering amazing deals. Also, amazingly, 100% financing is still available!! It's called Rural Development or R.D. and is a government backed loan. These loans are available for properties in Kuna, Star, and Middleton. Also, still available but not sure for how long is IFHA 100% financing for people with good credit. The program is called "Good Credit Rewards." FHA financing is available with a 3.5% down payment which is an achievable goad. If you have yet to purchase and are waiting on the sidelines, it will probably be a good time for many months to come. Don't let anybody rush you into your purchase.

Where is your market, Boise Idaho? IHFA free grants for first time buyers and RD loans for %100 financing.

Wow. It's been a while since I have posted here. I guess that means I have been busy. The state of the local market here is still sagging. The lower segments of the market are naturally performing strongest. In Ada County, the most transactions are under the $200K mark and in Canyon County it's less than $150K. It seems that most buyers are first timers or relocation's from out of state. Either way, it seems most don't have an existing home that they have to sell first. This is the stalemate. People who can't sell their current home obviously can't buy another. That coupled with the rise in foreclosures, which is also attributed to an over tapping of the market in the past few years. Some have said that we used up all the buyers for the next few years during that boom period. Financing is still available. For example, Rural Development (RD) loans are available for primary residences in Kuna, Star, and Middleton. They have a current interest rate of 6.06% and you can still do %100 financing. Also you can receive free grant money from Idaho Housing (www.idamortgage.com). For the other areas there are still IHA %100 financing options for people with good credit and some banks still have an in-house down payment assistance program, even though the AmeriDream program is ending in a few weeks. Contact me to get details and a no obligation consultation. Also, my services are always free for buyers.

The Short Sale is A Tricky Animal

As a buyer, the short sale is a great way to get a property for below market value. Be prepared to be patient, flexible, and unattached. The price that the home is listed at is not necessarily the price the bank will accept. A good listing agent will be relatively close. So if the property is already priced super low at say $170,00, it probably won't work to low ball an already low ball price. In fact the bank may come back and require $173,000! Each bank is different so you never know what you are getting. Make sure that your agent has short sale experience. There is a fine art in the submission of the "packet" to the bank on the seller's side (which also in critical for the buyer). Always allow extra time. The bank will take at least five weeks if not more to review your offer and in that time the seller can accept and submit other offer. Is essentially amounts to an auction. The most important thing to them is what they will net. Will the first loan be paid off in full? How short is the second? So the highest and best offer wins. They don't care who you are or about your situation, they only care about the bottom line. Once they have accepted your offer, they will want to close in about 30 days, sometimes less depending on the bank. Be prepared to do your inspection but to accept the property as is. Usually the seller has no money to contribute and the bank is not going to cut into their proceeds. It's a complex process but it can pay off if you are persistent and patient.

Get Represented. Understand Agency.

So many consumers aren't fully informed about how real estate representation or agency works. When you see a sign on someones lawn advertising the home for sale, that agent represents the seller, first and foremost. Idaho law allows that agent to also represent you as the buyer. This is called "dual agency" and both parties have to consent in writing to it. But is this really the best situation for a buyer? Can a seller's agent really represent a buyer at the same time even though the law allows it? It seems like an obvious conflict of interest to me. Most agents want to represent both. It's called "double ending" the transaction because they will get 2 commissions instead of one. This can breed dishonesty. I kind of liken it to showing up for court and hoping the other person's attorney will represent you as well. I believe it is forbidden in our legal justice system, but not in real estate. So many times I have heard that people think they will get a better deal if they go direct to the agent. Maybe they can, but I have also heard the regret that the agent didn't negotiate hard enough on their behalf or other inherent issues that could arise with dual representation. With buyers there is little reason not to bring your own agent to the table. The buyer's representative (agent) is payed by the seller's closing costs. That's right, it's totally free to get a Realtor to represent you as a buyer. So why do some do it anyway? I think lack of information or misinformation.

Supply of Single Family Homes in Boise (click on graph to enlarge)

$119,900 JUST REDUCED!!!! 3 bed 2 bath 2 car garage

Take a moment to view this 3 bed, 2 bath, 2 car garage home. Best of all, no association dues and it comes complete with all appliances (washer, dryer, fridge, dishwasher, gas range). Also, it has vaulted ceilings in the great room, a nice bay window in the front bedroom, split bedroom plan, and the master has a walk in closet. Nice, fully fenced yard with full auto sprinklers (water is $60/year). Newer carpet, ceiling fans, and an alarm system. Plus a 1 year home warranty.

Ask me or your lender about purchasing this home with zero down. IHA has rates starting at 5.9% and has need based free grants to lower your loan amount. This home is very affordable and makes sense. Call today and tour this home. 208-272-0282.

What To Do In This Tricky Market?

Everywhere you look there is doom and gloom in the media about the housing market and the general state of the economy. It’s easy to loose site of some of the best interest rates in history happening right now. According to Freddie Mac, last week rates fell to about 5.5% and have only been lower in 2003, 2004, and in 1959. In the 1980’s interest rates peaked at 18%. In the past 2 decades, rates have fluctuated between 6% and 10%.

You have probably noticed that sellers are getting beaten up out there due to a buyer’s market. So what should you do?

If you are selling, it is most beneficial to price your home down instead of up. It is also important to carefully check out your competition. If you want your home sold in the next 90 days it will take better pricing and better presentation. If you are having trouble paying your mortgage, it’s important to act quickly. Try renegotiating with your lender. Although they may reject you, keep calling back until you get someone to say yes. If that doesn’t work, contact your REALTOR® about doing a “short sale.”

There are limitless opportunities for buyers right now. Large inventory means great selection, more bargaining power, and better deals then we’ve seen in a long time. Lower interest rates translate into lower monthly payments. For first time home buyers, there are still zero down programs and free grants available for those who qualify. Consider buying your first home or an investment property this year, because rates will eventually trend upwards and the market will return to normal. One final thought, our services are always free for buyers.