Kevin & Maryellen Garasky (KMG Mortgage Group - ID & WA)

Listing Agents: Trying to unload a property?
Be Careful What You Offer as Incentive to Buyer

Yesterday an agent I work closely with called me about a particular listing she has. It has been on the market for well over 6 months and the sellers are getting anxious. They want to include some of their furniture in the sale, along with their boat and boat slip.

For those of you who are unfamiliar with North Idaho and Eastern Washington, this is lake country. North Idaho boasts some of the largest (outside of the Great Lakes, of course) lakes in the nation. Our lakes are glacier lakes so they are large, deep and COLD!!!!!

Priest Lake is so wild and natural that most of it can't be accessed by vehicle. Anyone wanting to visit "Upper" Priest can get there by boat only.

Lake Pend Oreille is so deep that it is a Naval training center.

Hayden Lake is 38 surface acres and over 175 feet deep and, because of the irregular shape, has over 40 miles of shoreline.

Lake Coeur d'Alene is fed by three rivers (the Saint Joe, Coeur d'Alene River and Saint Maries River), is over 180 feet deep and has over 110 miles of shoreline.

-- So, as you can see, a boat and slip would be a HUGE incentive to buy in our area. --

She asked what my thoughts were on the matter and how it would affect the lending aspect of any potential buyers.

WARNING! This is considered an "Inducement to Purchase!"

"Well, duh," she said, "that's kind of the point!"

Right. But what she did NOT know is that these items CANNOT be included in the appraisal value of the house and, if a value is given (which, as a matter of fact, will be at the time of the appraisal), it is taken right off the top and CANNOT be considered in the purchase price of the home.

Other examples of Inducements to purchase are as follows:

• Seller paid contributions that exceed the 6% limitation (if using FHA financing);
• Decorating allowances;
• Repair allowances;
• Moving costs;
• Excess rent credit (if a rent-to-own option was being executed);
• Gift funds not meeting FHA gift requirements (again, if using FHA financing);
• Seller payment of buyer's sales commission on a present residence;
• Seller payment of buyer's Real Estate buyer agent Fees above the normal and customary seller paid realty fees;
• Personal Property items (like furniture, cars, boats, riding lawn mowers, televisions, theater systems).

All of the above items will result in a reduction of the mortgage for your buyer!

However, certain items, depending upon local custom or law, may be considered as part of the real estate transaction with no adjustment to the sales price or appraised value necessary. These items include the following:

• washers and dryers;
• ranges;
• refrigerators;
• dishwashers;
• window treatments.

Some lenders require that the sales contract list these items as being provided at no cost to the buyer. However, all lenders KMG Mortgage Group works with will allow this verbiage to be excluded from the sales contract, as long as the appraiser addresses it in his/her report.

So, be careful what you offer as an incentive to potential buyers. If you have any doubt whether your incentive is considered an Inducement to Purchase or just a normal part of the real estate transaction, please give KMG Mortgage Group a call BEFORE your buyer's financing is affected.

Maryellen Garasky
Mortgage Broker
KMG Mortgage Group
(208) 664-3600
(509) 638-3455
www.kmgmortgagegroup.com

For those of you who may not know, this year's Special Olympic World Games are coming to Idaho this winter.

This is a HUGE honor for the state of Idaho. The honor, however, will be extended to our very own community. The Olympic Torch will be passing through Coeur d'Alene January 29th and 30th!

A couple of weeks ago our Kiwanis Club had the privilege of meeting Christine Jarski (VP of Development and Marketing, Special Olympics Idaho) and Kirk Grogan (Global Messenger AND Bronze Medalist for shot put) - see photo below right.

Kirk shared his many experiences with Special Olympics. In addition to participating in Hong Kong games and meeting the President of the United States, Kirk has visited many other countries around the world on behalf of Special Olympics by supporting and educating the public on the many Athlete Leadership programs they have to offer.

Now you, too, have the chance to support Special Olympics Idaho.

Breakfast With Champions
Tuesday, December 17, 2008 at 7:30 a.m.
Coeur d'Alene Inn

Breakfast With Champions is the largest annual fund-raising event for Special Olympics Idaho, a non-profit organization that provides year-round sports training and competition for children and adults with intellectual disabilities.

As former athletes ourselves (Kevin played football and Maryellen played softball - both went to college on full-ride athletic scholarships), this speaks to our hearts.

We encourage you take part in this great event and show your support for Idaho's Special Olympic Athletes.

Maryellen Garasky
Mortgage Broker
KMG Mortgage Group
(208) 664-3600
(509) 638-3455
www.kmgmortgagegroup.com

Holiday Light Show: Lighting the Sky Above Coeur d'Alene

The Coeur d'Alene Resort Holiday Light Show has become a tradition for many families in North Idaho and Eastern Washington. My family is no exception.

Every year the event, which always falls on the Friday after Thanksgiving, draws more and more people. Last year the ever popular ABC morning news show Good Morning America featured it as one of the best in the nation. I couldn't agree more!

Imagine beautiful Coeur d'Alene and downtown Sherman Avenue lit up with over 1.5 million twinkling Christmas lights ..... add Santa ..... add Christmas carolers ..... add hot cocoa ..... add a cruise to the North Pole to meet Santa himself ..... and you have the perfect equation for a great Christmas time!

This year will boast the tallest living Christmas tree!

Dress warm! Bring your thermos full of hot cocoa and wear your walking shoes!

Merry Christmas to you and your family!

Maryellen Garasky
Mortgage Broker
KMG Mortgage Group
(208) 664-3600
(509) 638-3455
www.kmgmortgagegroup.com

Holy Halloween, Batman!

Well, they did it again this year! The Coeur d'Alene Downtown Association pulled it off!

What a great time for family and friends.

The streets were crowded with little girls and boys dressed in their Halloween finest. You couldn't turn around without knocking elbows with someone you knew with friendly smiles and open arms to greet you.

Ok, that's a lie! I would guess about 150 screaming kids, pumped up on sugar, running with their frantic parents in tow. You would try to stop and greet, do the polite thing, you know:

"Nice to see you."
"Oh what a cute - insert name of costume here - you are."
"Wow! You look scary!"

But, I can tell you, there was very little of that. Of the few parents whose eyes actually did meet mine, I saw the same look of terror:

"...please, God, please let me get out of this place with my sanity intact and my child able to go to bed SOMETIME in the next century."

Ah, I can't wait again until next year!

Maryellen Garasky
Mortgage Broker
KMG Mortgage Group
(208) 664-3600
(509) 638-3455
www.kmgmortgagegroup.com

Trick or Treating in Downtown Coeur d'Alene - Safe Family Fun

I can't tell you how much I love living in Coeur d'Alene. It seems that no matter the time of year, there is ALWAYS something to do.

This Halloween weekend is no exception.

Tomorrow, Friday Oct. 31st, the Coeur d'Alene Downtown Association and member businesses and merchants on Sherman Ave will open their stores and shops to little witches and goblins for trick-or-treating fun from 4 p.m. thru 6 p.m.

Happy trick-or-treating and please stay safe!

Maryellen Garasky
Mortgage Broker
KMG Mortgage Group
(208) 664-3600
(509) 638-3455
www.kmgmortgagegroup.com