Who's Looking At Houses Now

We are seeing a marked increase in buyer interest and open house activity this past month. The sales number I posted a couple of posts back show we're getting more closed sales as well. I wanted to comment on the folks I'm meeting and talking to this past couple of weeks, especially at Open Houses.

Over the past month, I have been in homes ranging from $299,900 to $399,900, which for our Boise area, Treasure Valley market is a market segment well above the median home price. My informal, totally unscientific numbers show that 1/3 to 1/2 of my visitors and lookers (it varies each day) come from out of state. Arizona, Washington, Utah, and California are the states I hear most, in that order. All have property that they have sold or is on the market where they used to live that is priced higher than our market, so they are bringing equity to the Treasure Valley. Our prices look attractive to them.

The other half of my visitors have been from Idaho. Some are families looking for more room, and some are older couples looking for "nicer but smaller than we have now". I think the interesting thing for me is, where the out of staters are ready and willing now (and able as soon as they close their out of state sales), the folks I've met from here in the valley are "just thinking about it" or "we'll think about selling our home if we find a new one we like". Not ready, maybe willing, but not able either.

If you are in the "just looking" or "just thinking about it" group, may I offer some hints to think about as you look at homes now:

If you need to sell your current home, have a Realtor find the market value of your home on today's market. I am still surprised by how many people do not know what their home will bring today, or what the demand in the marketplace might be. Be realistic in what your home will bring, so that you aren't looking at new homes that you might not be able to reach.

Unless you can afford to buy first and sell your home second, and can handle the financing for both in the event the original home doesn't sell right away, get your home listed and on the market as soon as possible. Two summers ago it was possible to find a new home, make an offer contingent on selling a current home, and have that deal accepted and completed with not much difficulty. Today's market won't allow for that. Many builders will not accept contingent offers right now, and I've watched more than a couple folks miss out on a home they had picked out when it sold to someone else while they prepared to sell theirs.

If you need to sell your home but you aren't planning to sell for months (or even next year), start preparing your home today. Even though the market is cooler than it was a year ago, well conditioned, well presented, and properly priced homes are selling. But this market is not frantic as it was in 2005 and leaving projects un-done or having worn out conditions will stop your home from selling. "$2000 Carpet Allowance" won't get the job done in 2007, and will prevent your home from even showing to many possible buyers.

When was the last time you checked your credit report or mortgage interest rates? May I suggest that you do both as soon as you can after deciding to look at homes? If there is anything on your credit report that needs fixing, it might take time, so give yourself plenty. And in case you haven't been listening, while rates are still good, lenders aren't quite forcing money on anyone who can fog a mirror... that "no brainer" 5% interest deal you remember hearing on the radio last summer isn't out there anymore.

Finally, talk to a Realtor. I know, you're just looking today. But keep your eyes out for an agent you can call for answers to questions and market reports. You will save a lot of guess work, and you'll be able to judge their efficiency and follow-thru. And next month, during the Parade of Homes, you'll have a name to give all those agents in all those homes.