Kim Koppen

The weather in Seeley Lake may still have a crisp feeling, but for the most part, we've turned a corner. The sun is shining, the snow is melting, hibernating animals are waking, and the crocuses are poking their heads up through the ground; a long and cold winter is starting to wind down. This Saturday marks the first day of spring, and it is a welcome change!

As we have come to expect every spring, the incipient balmy weather sprouts tulips, and is also likely to bring another species out of hibernation—househunticus americanus, commonly known as the North American house hunter. These intrepid souls, no longer trapped indoors by snow banks, icy roads, and freezing rain, will soon begin venturing out in search of new lodging - maybe even vacation homes! And like all successful explorers, North American house hunters must be properly outfitted for their searches.

Are you among this species of house hunters? First and foremost, you’ll need a means to plan your search. Begin by finding a Realtor® you like. This is a critical step, as Realtors® are invaluable guides who will provide you with detailed advice on how to search for and buy houses. And, if you’re looking in an area that is new territory, you’ll want to be sure to choose a seasoned resident of the area where you want to buy.

You should also consider buying a map of the city where you're planning your home search. An experienced real estate professional can guide you to the areas that fit your needs, and you can self-search with sites like Google Maps and Mapquest.

Once you're actually on your search, always keep a pad of paper and a writing utensil with you. These are useful for jotting down homes you see with For Sale signs. You can then ask your real estate agent for more information on those homes. And, if you find a home for sale by someone other than your Realtor®, passing the address and phone number onto your agent is a great way for them to dig up the relevant information about the house for you.

Keep your pad and pen with you once you actually start touring homes, too. You’ll find that taking notes of things you like and dislike about the homes you see will be helpful; you're likely to look at a lot of homes, and they may start to run together in your mind. Taking notes will not only keep you focused on the homes you're seeing, it will give you a frame of reference to start narrowing your choices, based on what you’ve liked and what you didn’t.

Finally, as a smart house hunter, you’ll want to always take a digital camera with you on your search. Like your notes, pictures will help you recall each house, and help to keep them separate in your mind. You can also use your camera to snap pictures of specific things you like or dislike about any home. Again, these will help you make your final decision after narrowing down the houses you're particularly interested in.

That may seem like a short list—Realtor®, map, paper and pencil, and camera—but with those essential tools your home search will be a breeze. When you’re ready, give me, Kim Koppen, a call. I’m your Seeley Lake home expert and I’m ready to take you on the adventure of finding your next home! Happy hunting!

It’s that time of year when people are starting to think about their spring break vacations, and many may be romanticizing about owning a second home in Seeley Lake. The recent economic downturn has likely discouraged some from buying a vacation home, however that tide is turning. Today, conditions in the housing market have improved for prospective buyers (home prices and interest rates are lower than they have been in some time), and opportunities abound for those in the market for a second home.

There is one caveat: today’s borrowers must be patient, eminently qualified, and strategic about their housing choices. Lenders are still holding to tightened lending practices, which means that those who want to buy will need to meet the banks’ new higher standards. However, with mortgage payments so low for vacation homes right now, if home buyers are able to qualify and make savvy decisions, they will be rewarded with very affordable second mortgage payments.

With regard to lending requirements for second homes, Fannie Mae and Freddie Mac, the government-owned companies that essentially dictate the lending criteria for mortgages, have tightened their requirements for standard loans. Borrowers must now have credit scores of at least 660 and down payments of 20% to qualify; a year ago, the industry standard was a 620 or better credit score and at least 10% down (to avoid private mortgage insurance, or PMI).

Because banks consider loans on second homes riskier than those on primary homes, many lenders had opted not to take a chance on them in past months. The requirements were changing so much that lenders were fearful that Fannie and Freddie would force them to buy back the loans if they weren’t underwritten precisely matching the specifications. Since October of 2009, however, lenders have been more willing to process loans on vacation homes, and more deals are going through. As a result, many new vacation home owners are finding some great deals in our current buyers’ market.

Are you considering a second home in the gorgeous Seeley Swan Valley? Have you dreamed of owning a vacation home in Seeley Lake, but were unsure whether it was a good time to buy? Give me, Kim Koppen, a call and let me help you determine the best options for your lifestyle and budget. I’m a local real estate professional with expertise in second and vacation homes here in Seeley Lake, and I’d love to help you achieve your dreams!

Are you overwhelmed with what could be described as media-driven real estate malaise? Everywhere we turn, we’re hearing about the recession and how today’s market is a buyer’s market, if you’re in a position to buy. There is no doubt that real estate is a cyclical business - all of this has happened before, and it will likely happen again. What goes up must come down, but what’s more important is, what goes down has always come back up. This is the case in Seeley Lake real estate, and I encourage you to reframe your thinking about the recession - consider that today’s market is ripe for you to trade up with your home and capitalize on the economic times.

Home values will most certainly continue their long-standing trend of appreciation over time, and equity buildup through paying down the mortgage remains a proven path to financial wealth. The key to making the most out of challenging economic times is having realistic expectations. You simply cannot sell high and buy low at the very same time. However, if you sell and then buy in this buyers' market, you will get less from your sale but be able to make it up with greater savings when you buy. Overall, homeownership is best viewed as a long-term investment.

The Hazard of Trying to Time the Market

If you’re a potential buyer who is thinking about waiting until prices come down more, you are also gambling that interest rates will hold steady or drop. What many people fail to consider is the impact interest rates can have on the real monthly costs of homeownership. Even a 10% drop in home prices is immediately nullified by an interest rate increase of a mere 1% on a 30-year mortgage loan.

"Obviously, if you're selling for less than you could have gotten three years ago, you're disappointed, but you really need to look at your bottom line," said Walt Molony of the National Association of Realtors. "If you're trying to trade up, whatever you're going to trade up to is going to sell at a discount, too. You need to look at your net."

For example, a $250,000 median-priced home in Seeley Lake (where prices have declined 25% in the last few years) has lost $62,500. But consider that if you're moving up and buying a $600,000 house, which saw a $150,000 loss, in effect, you're making $87,500.

Many smart buyers see the opportunity of a down market is the chance to trade up. They understand that saving on the larger home purchase offsets any loss on the sale of their current home. Today’s decreasing home prices are a tremendous opportunity for move-up buyers, and the prices won’t fall forever.

Are you considering trading up to a nicer Seeley Lake home? Maybe you’re interested in making a smart move in a down market to buy a discounted vacation or second home. If so, give me, Kim Koppen, a call and find out how I can help you with all of your Seeley Lake real estate needs!

In the wake of the latest economic crisis that has hit the housing market hard, banks are tightening lending practices, and those looking to buy a home are now having to be prepared. When you’re looking to buy a home in the Seeley Lake area, do your homework and be sure to follow these tips to get on a healthy financial path to home ownership.

Get Preapproved. Preapproval is a necessary part of the home buying process that helps save you time and money, and it is done by your bank, ideally before you start your house hunting in earnest. Getting preapproved for a loan helps you to determine the price range you can afford and enables sellers to take your offer much more seriously.
Choose a lender or mortgage company wisely. Before you have a signed contract to purchase a home, you must first choose a lender. When you apply for a loan, you’ll be providing all of your financial information, including your employment, assets, and liabilities (including recurring debts like car payments, other loan payments, or credit cards). The bank will also issue you a Good Faith Estimate (GFE) that will estimate certain costs you may encounter in the home buying process.
Stay away from borrowing the down payment without disclosing the loan, submitting fake letters of credit or gift lenders, or making secret financial arrangements.
Be accurate. Be sure you list your income and assets correctly, as well as all the debts and amounts that you owe. Your credit report will be examined by your lender, and they will be given information about your bill payment history, whether you’ve ever been sued or filed for bankruptcy, among other details. You are entitled to a summary containing the sources of the credit report information and you have the right to dispute any inaccuracies.

With historically low interest rates, and federal tax incentives for first time and repeat buyers, now is a great time to buy a home in Seeley Lake! If you’re ready to start your search, call me, Kim Koppen. I’m ready to serve as your Seeley Lake real estate expert! Also, visit my Great Bear Properties website for more tips for homebuyers!

You’ve heard the saying, “when life hands you lemons, make lemonade!” I think this principle applies particularly well to recessions and the real estate market in Seeley Lake (and across the nation). How? Consider that whenever the economy hits a downturn, someone is having an upturn (for example, discount stores do very well in a struggling economy, even though big department stores suffer). The same happens in real estate.

There are more than just a few people who are silently reveling in this recession because they are savvy enough to take advantage of it. These same people will see big returns in the long term. The trouble is, in a buyer’s market, many prospective home buyers make the mistake of trying to offer too far below the asking price for a property, and what they end up with is no deal at all. So, how do you get a good deal and avoid wasting your golden opportunity in this recession?

Do your homework and think about properties on a relative scale. What was the home you’re interested in worth in the last peak? What does the market really say about what it is worth today? If a home is listed at $200,000, but was worth $400,000 in 2006, you’re getting it at 50% off! This should bring some perspective if you’re not happy about the prospect of offering close to asking price.

Position yourself to use your home as leverage in preparation for the next boom in real estate. The market is a constant of waxing and waning - there will be a next peak. If you choose wisely now, you could set yourself up to be in a much better position when the time comes. Many buyers are surprised to learn that they can sell right now, even though their price will be less than the peak, and then re-purchase a bigger, better, newer home for close to the same monthly payment.

Consider the positive cash flow of investment. Talk with your real estate professional about what kind of cash flow you could gain with investing in property in today’s market. It’s a great time to invest, and many people all over the country are taking advantage.

By being smart about buying and selling in today’s real estate market, you could join the silent revelers and be glad you chose to make lemonade out of this recession. If you have any questions or want to learn more about how we, at Great Bear Properties, can assist you, please contact me, Kim Koppen! I’m your Seeley Lake real estate expert and I’m ready to help you with all of your real estate needs.