Several clients have been missing out on some homes they truly wanted and it's a trend I feel will continue in our area of Boise and Nampa Idaho. Tami Merriam my real estate partner and I have seen this scenario over and over again especially in last month and now well into March. We've seen a pickup in business and more buyers are getting off the fence and finding their dream homes.
Buyers watch out for there are many other buyers and investors out there and they are snapping up some great bargain priced homes causing much frustration for many that were hoping to have their dream home.
For many news watchers the media tells stories of buyer's purchasing homes for so much less than the asking price. Buyers decide that based on these stories in the Treasure Valley area they can do the same. However this is simply not happening over here right now. Price reductions of 10k, 20k and higher usually occur on the higher priced homes such as those found in the $200,000 price range. Also depending on location sometimes the homes go for higher than their asking price.
We work with many clients shopping for homes in the $70,000 to $140,000 price range. I must have shown about 50 homes in the past 3 days to several clients.
When I run the comparables all of these homes they almost always turn out to be one of the best priced homes in their respective areas and sometimes in the entire city of Boise, Meridian, Nampa and Caldwell.
One home that was sitting 120 days plus was price reduced from $130,000 to $122,000 and it received multiple offers within 2 days of the price reduction. Another home being watched by several of our clients and I'm sure by others was just reduced from $142,899 to $119,999 and the agent's phone has not stopped ringing the past day. This home will be sold in the next 2 business days while potential buyers scramble to view the home and to justify why they should offer even less than the asking price. One problem is that despite TLC or any repairs that this home or other best priced homes you may encounter need the price already reflects this and many buyers/investors know this and offer full price or higher for the home.
Another thing is that investors are still paying cash for these types of bargains. I've seen 3 homes go pending in the past day all under $130,000 in Boise and it wouldn't surprise me if 2 or all 3 go for cash from an investor.
Solution:
Buyers must be prepared not only to see the home the same day that it is price reduced but prepared by having a pre-approval letter from a lender in their hands and also sent to their agent.
A quick check list for these types of homes include:
1) Be available and call your real estate agent right away to show the home the same day, within hours if possible.
2) Have your agent call the listing agent and inquire by asking the right questions on the home such as making sure it will qualify for the lending you need. (FHA, VA, etc.) An agent in the know will ask the right questions and save you time and frustration.
3) Make sure you have the earnest money available whereby a check can be issued typically for 1% of the purchase price (this is negotiable talk with your agent)
4) Be ready to offer list price and maybe even higher if you need help with prepaid and closing costs (this can be rolled into a higher price whereby seller sees this as no concession thereby increasing your chances of an accepted offer).
5) Make sure your agent shows you the comparables for the home
6) Feel good about the monthly payment (obtain good faith estimate from your lender to include property taxes and hazard insurance that goes into your escrow account)
7) Write the offer today! Don't delay for other offers are headed to the agent as your considering what to do on the home. We've seen it happen time and time again especially when a home becomes one of the top 5 priced homes in the area.
Look for further articles, blog entries and stories from us on this subject. Contact us by email or phone with any concerns, questions or advice. We would be honored to represent you as your real estate agents through out the process!
Thank you,
Scott Messing & Tami Merriam with ERA West Wind (208-761-7609)
Potential homeowners have been sitting for a while now waiting for signs that say "Now Is The Time To Buy." Is it a good time to purchase a home? remains one the most popular questions we hear
The answer is that it depends on the price range and your own particular situation. However this year with the new $8000 tax incentive for first time buyers that is not a loan but a true credit, as long as you don't re-sell the home in the next 3 years, combined with the low interest rates and a market that in some price ranges has held steady the answer is now yes.
So where do you start with shopping for your new dream home?
Our site contains the Multiple Listing Service where you can key in any price range, any city and specify the features you'd like to see in a home from the number of bedrooms and baths to the square footage, yard size, # of garages and extra amenities such as fireplace, granite kitchen counter tops and more. There's never any registration information needed to view all the homes either from the land or from the sky with satellite views. Here's the link to start this search now.
There's also a great overview of the process and check list to help guide you through the entire process located here.
What is the first step before we even start looking for a home or invest time and gas in driving by all the homes in the various neighborhoods where we might want to live?
Contacting a lender and making sure you are not only pre-approved for a mortgage but that you feel very comfortable with the monthly mortgage payments is #1.
We've seen many people start out driving around and spending hours each weekend entering homes only to find out that they are 6 months, a year or longer away from purchasing their dream home.
A good lender will not only advise you on the types of programs out there but will also guide you through the process, helping correct information and showing you what must be done to obtain an approval. There are many lenders that won't do the little extra things that we feel is a MUST to help you. We work with some amazing local lenders that will provide assistance, guidance and make sure that you understand all the costs involved in obtaining a loan. We would be happy to refer you their way. Remember, there's no charges to talk with lenders and have them pre-approve you. Sometimes clients are scared of what may be found but it's better to know up front what you must correct or do to obtain that mortgage.
Once you have a pre-approval from a lender then start your search online, in person by doing drive-bys, by entering open homes, by interviewing agents to find out what type of service they offer and who you trust to protect your best interests. We would love to be those agents! We also hope you will continue to use our site to obtain the wealth of information that's out there.
Short Sales and Foreclosures dominate certain price ranges:
Our area like most out there has many short sale and foreclosed homes. We've issued several warnings on these homes for it's not so easy to understand the process. You need to know what questions to ask for short sales and foreclosed properties. Frustration sits in when buyers don't understand the process or don't want to listen to what may occur. We set expectations based on the situation and help you through the process.
Short sales can and do take a long time. They are also not always the best deals out there. We show our clients the comparables, property history and ask several key questions such as:
These are just a few of the questions to ask about short sales. If the agent can't provide these answers or if the answers seem to be "not yet" or "we are working on it" then you can probably expect a long waiting period. The great news is that in Idaho you can cancel any short sale in writing before you have all the lender approvals without penalty.
Short Sales and Foreclosed (Bank/Corporate Owned) properties are priced usually at the lowest end of the pricing spectrum.
They are priced to move the home based in part on the conditions of the homes. Many people try to obtain these homes at 20% lower only to be outbid or rejected. Remember these homes are priced aggressively. That said we have managed to negotiate several thousand off the price but if you find your dream home and it's a foreclosed or short sale home consider all options when making your offer for if you go too low you will probably lose the home. It may not matter if you were just looking for an incredible deal but if you have an emotional attachment where the home has that special something you love then think twice before making a lower offer.
Location and condition determine pricing and many homes in certain locations have retained most of their value. I know the news makes most think that all homes have lost so much but that's not the case. Seeing actual comparables will show you what's going on.
Contact us by email or by phone to discuss anything you may need to start your wonderful and fun purchase of a home. Use our site and hopefully our services. For us it's about helping people and you're needs are always the focus. We would be honored to represent you throughout the real estate process!
I've been thinking a lot of about this topic lately. With the economy in turmoil and the new report released today showing the unemployment rate is at 7.6% it's never hit home more. Where is the loyalty? The loyalty from the companies toward the employees that have put in many years of service only to see their jobs shipped overseas the past few years or now to watch hundreds or thousands of jobs being cut. Meanwhile the executives and the board of directors often keep their 6 figure salaries. We call this the free market so does that mean loyalty counts for nothing?
The loyalty of hard working people that have invested hours, days or weeks into helping others yet find themselves in the unemployment line, behind in their mortgage payments, and their homes are now subject to short sales or worst they've already foreclosed.
Everyone has an opinion on what should be done. The stimulus package continues to increase and while I'm not going to pretend I know a lot about economics I do know that $500 or even $1000 back to every individual is a flat out joke. This part of the package needs to be steeper. Most people are so afraid of losing their jobs and their homes that they will simply take the money and save it or perhaps put it towards bills that they are already late on. The one thing almost everyone agrees on is that it's time for something to be done to not only create jobs but to save jobs and save homes. I know that the package has incentives there for these companies and I'm really hoping that it works.
Perhaps there needs to be major tax cuts to the point where thousands of dollars are going back to people to really make a difference? How about a nice hefty mortgage interest rate adjustment on all people in danger of losing their homes even if they don't have the equity there, which many people don't? We have received many calls about refinancing and since we are real estate agents and not mortgage lenders we usually refer people to a few local lenders we know.
In real estate loyalty is perhaps the hardest thing to find from clients nowadays. In the seller's case sometimes we are contacted to sell the home and so we meet with a client, listen to their situation and provide them with the best comparables possible. Often depending on a seller's situation with their equity and mortgage we say that now is not a great time to sell. Those are hard words to hear but it's better than sugar coating it and taking a home listing that is going to sit for months possibly causing more harm in the end as the seller and their agent chase the market. Sellers sometimes don't believe us and find another agent that will buy the listing (tell the sellers what they want to hear just to obtain the listing) and so the home sits price reduction after price reduction. It's the cause of such frustration for the homeowner and the agents that interviewed but lost the listing.
With buyers sometimes as agents we spend many hours doing research for clients, showing homes, explaining the process, negotiating the offers and more only to have them disappear without a trace. Perhaps it's cold feet on the buyer's part as it's the largest purchase usually made. Here's where a bit of honesty and talking things through could help all around. As agents we are dedicated and loyal to our clients. Our time spent with a client never ends, at least not for Tami and I. We are there for our clients not just as agents but also often as friends well beyond the completion of the home sale or purchase. Our #1 goal is to help and to protect people and so that's why it hits hard to see any client lose a home or simply to have them disappear.
Loyalty is what we ask for first and foremost. We provide excellent services and do our best to keep clients informed all around. Is it better to be honest even if that honesty is not what someone wants to hear? Absolutely 100% of the time. There are ways to work things through and with loyalty you can be sure that we would never give up on our clients and that we hope our clients would never give up on us.
Loyalty is hard to find nowadays and like trust or honesty it must be earned. We know people considering a purchase of a home today. They ask us is it really an ok time to purchase? When you look at the prices today of affordable homes (some cases under $120,000) coupled with low interest rates the answer is usually yes. However taking your time in making sure it's a purchase that's right for you, making sure that the monthly payment is right for you and that whomever you end up working with has your best interest at heart that's what's really important.
There are many options out there. There are also many gimmicks and/or scams to be cautious over. Sometimes people go from place to place looking for that best deal or that something "special" in the market place. To some loyalty is not important and in the end they may find themselves upside down or worst they may lose of a lot of their money in what they thought was a great deal. Whether you're looking for great deals on move-in ready foreclosed homes (we recently helped two of our clients find some of the best deals in all of Caldwell the past 6 months) or needing an agent to guide you throughout the process and beyond we are here. What we ask for in return if your loyalty.
We ask to be the agents that you consider when making that next purchase. Loyalty works both ways and we will work hard to earn your loyalty. Just know that you have ours from the start!
Welcome to the first blog entry in what we hope will become many in a series we are calling "The Alphabet Resources."
We are starting with probably the most meaningful and yet difficult word to hear for both buyers and sellers as we review honesty and beyond.
The letter H is meaningful in so many ways. It's the first letter in HOME a place for sharing, bonding, entertaining, comforting, and growing, relaxing and in most cases taking advantage of the American dream. For many in the process of losing their home it's been a struggle to try and retain the dream. Whether it's due to the economy, mortgage related interest rates, an illness or a number of other reasons losing a home is devastating. Often working with lenders before getting behind in payments or taking advantage of the new government programs can lead to a rescue. When buyers are not able to save their homes they often enter the world of short sales before the home becomes foreclosed. Short sales occur when owners owe more than what their home can be sold for and when they see if the lender(s) will absorb the loss allowing them to move on. Depending on the price range and location sometimes up to 80% of the homes fit into this category.
Foreclosures and stopping foreclosures have become big business for hundreds of 3rd party sources. Charging fees and sometimes running what amounts to scams they've come out of the woodwork. You've seen ads left and right, signs on the corners promoting the stopping of a foreclosure. The question to ask as we look at honesty is are these companies really paying and promoting to represent your best interests?
The answer to this question is usually and unfortunately no. Many are profiting from a seller's loss. There are now companies that are even negotiating directly with the lenders to take control of your mortgage situation, to buy the property first or to bring the late payments up to date and then to short sell the property at a profit. Perhaps it can save a seller but how honest is the process and what about the hidden repercussions to the seller's credit and future ability to purchase a home. H is for honesty and this process is a direct threat to the word.
If you're facing foreclosure or about to be behind in your monthly mortgage payments please talk first to your lender and also review the information at the U.S Department of Housing and Urban Development's web site by clicking here.
H is for honesty no matter what market we find ourselves in and no matter what the situation we encounter. Honesty is taken for granted in many situations such as when we enter a bank for a transaction. Most trust that the transaction of exchanging, withdrawing or depositing money will occur without problem. Or perhaps when you enter a school for learning or a hospital for care there's a great deal of trust in the word honesty that all will be handled and information will be relayed in a honest, straightforward way.
In real estate honesty is something that must be earned! Real estate is the largest transaction for most and it's an industry that for licensed real estate agents is regulated and overseen by local, state and national agencies such as in our case the Ada County Association of Realtors, Idaho Real Estate Commission and the National Association of Realtors. Yet despite a code of ethics, regulations, continuing education and a formal way for anyone to issue a complaint against an agent or a 3rd party there's this lack of trust and honesty.
For us it's the case of a few bad apples that operate in a less than honest way. There are a few people taking advantage of others and therefore we fight harder to earn a customer or a client's trust. It's through honesty that we can educate and help people but it can also drive people away especially in cases where they don't want to hear the answer. Telling a homeowner that their home is worth $40,000 less than what they must have while honest and based on real comparables is something the homeowner often refuses to hear. Unfortunately many homeowners select to go with an agent that will buy the listing (tell the homeowner what they want to hear at any cost to obtain the listing). Often this leads to a short sale situation or even a foreclosed home down the line instead of selling at the lower price or advising the homeowner of resources available to help them save their home.
On the buyer's side setting expectations through honesty such as indicating when it's a short sale that can take 60 days or longer just to hear an approval is not someting the buyer wants to hear, yet it must be said. It's hard to earn honesty when people often turn a deaf ear to it. The stereotypes we've highlighted before are brought into the spot light even more so especially in this crazy market. (See below for a link to past stereoptypes blog entry)
There are pariahs out there in every industry yet real estate is where there's this gray cloud that continues to hang over. It's easy to see why honesty remains in question especially with all the gimmicks out there that we face daily.
As real estate agents we fight the common stereotypes and work to earn your trust every day. Honesty goes hand in hand with the services we provide. Often people turn away from honest answers that they don't wish to hear. Sometimes it's a challenge as all it takes is one bad encounter and the owenr or soon to be homeowner believes that everyone in real estate must be dishonest. Yet most of our colleagues are not of this ilk.
Honesty is earned through each and ever encounter and through our actions. For those selling a home today or those purchasing a home in the future finding help from a honest agent, company or 3rd party vendor doesn't have to be this great challenge. Interview people, talk to them and I believe it has to be meeting them face to face so that you see what they are about, read their body language and make sure they will protect your best interests.
Tami and I would love to talk with you about any of your real estate questions or concerns. It's always about helping people first and honesty is an integral part of this every step of the way. We would be honored to represent you throughout the process and beyond!
Related past blog entries on honesty and real estate stereotypes for your review can be found by clicking here.
Other Resource Links:
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!
I entered the Real Estate profession as a result of my passion for helping people finding homes, viewing properties and for my interest in what's going on in our community. Helping others comes first!
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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