What a Mess? Let's Organize It!

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.

Is this all new to you? We provide an overview of the process on our site for both buyers and sellers. Check into the cities that interest you by viewing links for the Treasure Valley area. With any and every home you want to see we provide a property history and comparables to help you make an informed decision. You're the focus and so walking you through the process step by step to help make sense of the mess is what we can promise you for 2009 and beyond!