Aaron Catt, Boise Real Estate

In case you haven’t noticed, our real estate market currently favors buyers, not sellers. Buyers have ample choice with many homes to look at and they have the upper hand when it comes to negotiating things like closing costs, price reductions, down payment assistance, and other terms. But for some odd reason, many buyers are giving up that upper hand by calling the seller or sellers agent directly. Sadly, most buyers soon realize that they don’t have anyone looking out specifically for them and by now it’s too late, they’ve already signed paperwork. Having a trustworthy agent working on your behalf and only your behalf is critical in this market.

Think of the real estate market and the transactional process of buying a home like a river. In the river there are fast spots, slow spots, big rapids, whale sized boulders, keeper holes and riffles. If you have ever had the chance to go whitewater rafting, you know that it can be very exhilarating and even scary at times. And, unless you’ve done it a lot, you’re probably better of hiring a rafting guide who can help you navigate your way down the river and avoid the dangerous obstacles rather than doing it yourself. I’ve been on both kinds of rafting trips: self guided and commercially guided. Both are fun, but the experience is very different.

When you have a personal river guide, much like your real estate agent, you can relax knowing that they are going to take care of you. River guides know the rivers that they work on and they understand that the river features change as the spring snow melt comes and goes and they can navigate the boat down the river by recognizing certain river features. They are professionals at what they do and are trained to handle the boat and their clients with care while having fun as well as during an emergency. Don’t forget, they want to get down the river safely just as much as you do! Having them there allows you to enjoy the scenery, have fun splashing through the big waves and getting to experience the thrill with your friends and family. They play a vital role in getting you from the boat launch to the take out, but they aren’t the center of attention; their clients are. Whitewater rafting is an experience that will last a lifetime and so is buying a home. Your buyers agent is your river guide and a good one knows the obstacles, they’ve recognized how the market has changed and a good agent will guide you through the process and make sure that you have a great experience. And, with the possibility of falling out of the boat, you can rest assured that your guide will get you back in seconds flat!

Like any river trip there is a substansial amount of planning. Most buyers either forget or don’t realize that they should be planning with their buyers agent before they even make the first step into a purchase. If you are even thinking about a purchase, you should be contacting your buyers rep as a first step. This doesn’t mean that you can’t go out on your own and kick some tires, or check out your favorite spots. Once you’ve let your agent know about your situation, they can help you start the process and make sure you start off on the right foot. Too many times, first time buyers feel like there is no need to contact an agent because they are only just beginning the process and aren’t too serious yet. This is pitfall #1 because many times, the process begins without you even knowing it and before long, you’re in over your head!

Whether or not you are serious or just looking, it is only a matter of time before you are kicking the tire of the home that might be perfect for you; you walk in, you see the new granite counter tops, smell the new paint and get overwhelmed and excited about how much room there is in the walk-in closet! All of your senses are now drunk and you are behaving emotionally rather than rationally; this is a salespersons dream! Your buyers rep can help out here while you are taking in all of the excitement and psychologically ‘moving-in’ to the home you don’t even own yet. Your buyers rep will help fend off the hungry wolves (salespeople) who love to see ‘just looking’ buyers in this situation…especially at an open house or an on-site sales office.

So, before you give up your strong negotiating stance in this market, call your buyers rep! They know the market, they know how to negotiate and they can refer you to the important team players involved with the rest of the process! If you’d like some consultation so that you can get an idea of the home-buying process, call me and don’t wait! There are a ton of good deals out there and I can help you navigate your way through the waters and to the home that’s perfect for you!

See this article and others from their origin: Buying a Home in Boise? Don’t forget your Buyers Agent

It seems as though grocery stores, mega-stores and department stores put their seasonal stuff out so early, that it’s easy to forget what season we’re really in. If you’ve forgotten about Halloween, its likely that you dont have any kids running around your house reminding you constantly. My kids however, are too young to know about it and so, the only reminder I have is those little annoying noise making heckling witches in the check-out aisle at the gorcery stores. So, if you’re wanting to know what trickery is available for you and your family this year, I’ve put together a couple events that you can take part in.

Children’s Harvest Festival

If you’re on a budget and need some wholesome family Halloween alternative, check out the ‘Children’s Harvest Festival’ at the Expo Idaho Fairgrounds. It’s “all free” and geared toward children ages 2 Years to 4th Grade. It’s on Oct. 31st from 6pm-9pm. There will be games, candy, carnival treats and “lots more”.

Luminous

Also on Oct. 31st, there will be an event at Calvary Chapel Boise for 4th Grade and Older kids. It’s a UNICEF fundraiser with a live music concert. Doors open at 6pm and the concert starts at 7pm with music from In Pursuit Of and Nate Fowler. Free candy and refreshments with a $2 donation at the door.

Linder Farms Pumpkin Patch & Corn Maze

When you drive down Meridian Road towards Kuna, you'll see a sign on the side of the road that points you to Linder Farms-don't get confused though, there is also another sign that will point you to another corn maze. We went to linder farms last weekend and they've got a pretty cool set-up and most of it is free. The have a small petting zoo with some farm animals and you can buy some grain and feed them. They also have a hay-bail maze for the little ones, and there is also a pretty continuous cycle of hayrides that go throughout the property where you can jump on and off at different stops. They also have food and drinks and thankfully can take debit cards...we forgot our checkbook.

Idaho’s Original Corn Maize

Not so much an event but definitely worth mentioning here. This Corn Maze has been around for a few years now and although it’s been years since I’ve been there, Im told that it’s really fun with a lot of activities. Turn down your volume before going to their website, but once you’re there, you can browse all of the events and activities they have to offer. Corn Maize

The Haunted Woods

Each year the Eagel Fire Department has ‘The Haunted Woods’ fundraiser to support their Burn Out fund for families who have been displaced by fire. Where: Merril Park. When: Oct. 17th-Oct. 31st (only Fridays & Saturdays) and then on Oct. 30th (Thursday) from Dusk until 11:30pm.

You can get more information at the Eagle Fire Department website

If you know of other events that are family friendly, please post them here as a comment or email me and I will add them to the article.

See this article in its original context Halloween In Boise: Fun for the whole Family!

It came up yesterday with a buyer client of mine who called and asked if he should lock in his loan. The circumstances of his particular transaction are a bit unique because he is buying a short sale and we are awaiting the sellers banks approval, so the actual closing date is up in the air. Given those issues, deciding when to lock from a time-frame standpoint is difficult. I’d like to focus on locking your loan and buying points from a financial perspective and when it is a right time to lock your loan.

So, what’s a Point?

A ‘point’ in mortgage and loan lingo is typically 0.25%. Simple. If interest rates are at 6.5 percent, you can buy down your loan by purchasing points. So, for examples sake, a point on a $100,000 loan might cost you $1000. Lowering your payment from $632.07 (P+I) a month to $615.72 (P+I); saving you about $16 per month. Was it worth it? Well, depends on your personal circumstances but the important thing to remember is how long does it take to pay off that point. In our example, it will take 5years ($1000/$16). So, I might say I’d save the money for a paint job, but if it puts you out of affordability, it might be a decent idea.

So, what’s a Lock?

A lock is where you and your lender stick with an acceptable interest rate. Basically you lock it in. That lock generally will only last 30 days and if interest rates go up then you are hedged against the increase. Inversely, if they go down, you might miss out on the savings. If you decide not to lock, you are what they call floating. So, knowing when to lock is important, but understanding why and how you might be affected is even more important.

There are many places on-line you can go to get infomation on when to lock, and their advice is generally based on financial market news and they give you a scale based on particular time frames. I get what is called a ‘Daily Rate Lock Advisory’ emailed to me daily and I can send you one if you need to know whether or not to lock.

Back to my client. Given the caveats of his transaction, he’s floating because if we lock, his 30 day lock most likely will expire. He does have the option to extend the lock into a 60 day lock, but for a price: 1.5 points. Is it worth it for him do pay $3100 to buy and extended lock?

Lets work through it. Currently, he is borrowing 200k and is qualified at a rate of 5.75% and it would cost him 1.5 points to keep it there for 60 days. But, if his rate went up to 6.5 he could still buy down the rate for the same amount getting him back to where he would be if he locked. Trying to predict the future markets is a waste of time and guessing on whether rates will go up or down is big business. My advice would be to float it and if it nears 6.5-6.75 percent then I would lock for 30 days and buy down the rest back to the 5.75%. This is only an example and I would always talk with your lender that you trust and have them analyze your particular circumstances.

If you don’t have a trusted lender, give me a call and I will refer you to a great one!

Follow this link to the articles origin: A point about points: When to Lock