Wanda Thomas, Billings Montana Real Estate

Not too long ago, ok maybe a long time ago (35 years seems like just a while back), my MOther In Law had a 6.25% 30yr fixed mortgage on her home. I said "don't ever pay that off, you won't get money any cheaper", the going interest rate on a new home loan was somewhere in the vicinity of 12%. This is a new day.

The lenders are shouting with joy right now, because after being called the scum of the earth for helping people get into toxic loans (not the case around here, 3rd lowest rate of foreclosure), they are now the HEROES of the hour with rates at 4.5% to 5% 30 year fixed mortgages. $$$ cha ching! More dollars for you in your pocket, more dollars for them in transaction fees. Even more interesting are the folks coming out of the woodwork wondering if the bottom is here.

Should I upsize, downsize or buy more for investment? Since our local sales volume is down 20%, you would think our prices would be going down. Not so, we actually increased by about $3,000 for average sold price on an average in the $196,000 range.

Anything that is priced right around here is selling in less than 30 days, overpriced stuff still sits and waits. People who are wondering where the bottom of the market is should come over to my office and check my crystal ball! If you knew the stock market had peaked and was headed down, did you pull all of your stocks or loose 25% to 50% of your 401K like I and a lot of my friends did? Can you live in your 401K?

Buyers are missing out on really good deals because they get burned out trying to find the desperate price instead of the best house for the money!

We just had a homeforecasters.com report come out that "forecast" the Billings Montana market will appreciate 3.1% for 2009. Humm, I wonder. I'll just have to check my crystal ball.

I was searching through the expired listings in my area this weekend, and yep, lots of weird paint colors on the interior walls. I actually love some of the daring reds people are putting on their walls, but lots of folks just don't have the guts or the furnishings to make it work. Let's face it, power paint jobs are great if you like them, but get over it when you put your home on the market.

If you don't feel like painting over the color, with the 2 coats of primer and 2 coats of new color; a buyer won't either. I think you just reduce the chances of "grabbing" the interest of a buyer who wants to put their own "color scheme" to their new home.

In my job, I've heard this a number of times "I love that color, I'm so proud of it, lots of people comment on my wall. Ok, but are they buying your house? I have a good friend who is a power painter, I loved her red wall but not her aqua blue bathroom or her aqua green master bedroom. I grabbed her by the shoulders and shook her, gently of course and with love, and told her "we can't put this house on the market until you paint". She really thought I had insulted her artistic talent and creative energy and wanted to go ahead and make a few but not all of the changes. Guess what everyone kept saying that looked at or showed the house! "Wow, these people really love their paint". Keep in mind, most people don't think about the "paint job" when they look at a house, only that it looks good if it's one they want to buy!

Another dear friend heard me when I said I loved the paint job, but it has to go before we put the home on the market. "Oh I love that red wall, but ok, I'll fix it with a neutral tan". Her home sold in 7 days. Need I say more!

Has your 401K made you reconsider your retirement home size?

Not too big, not too small, just right! Since our average house size has increased, and increased and increased; will baby boomers look more to downsize and simplify, or do they still want McMansions?

I hear the voice of a little concern in my age group, what will the future bring? What size will my Recession house be? How long will a recovery of my 401K take? Can I afford my big dream house or should I just have sweet dreams in a smaller one?

Since Cash Is King, and the more of it you have the better off you are, maybe we'll see a bit more satisfaction in a normal sized house you can afford.

So I ask you, what size will be the right size?

1200sf 2000sf 2500sf 3200sf 4500sf 5500sf 6500sf

We're Flat, But Not Sinking. Is this all there is or are we just behind the curve?

Our peak number of closed sales occurred in 2006, like a lot of other places. Now we're down in total number of single family home sales by about 20% but our absorbtion rate is still under 6 months. I could of taken this right out of our latest issue of Realtor Magazine our number are so close.

Our lenders are finally smiling, they have about 10 to 1 refi folders they're juggling compared to home sales. I'm not sure what this means except that more people are staying put and getting a better deal than they had before.

Oh, and those HELOC's that had a floating interest rate! They're getting rolled right into the first mortgage refi.

I have a few buyers who are "on the fence", they want to buy but just aren't sure that they can get the best deal yet. I don't know what to tell them since our price still hasn't gone down, in fact, it's up a little.

So I wonder? Are we insulated or is this all there is?

Happy New Year

And I quote "I want what every other buyer wants, I want a great house at a bargain price". We call this a buyers market, and sellers YOU NEED TO PAY ATTENTION!

The Power of WOW!

Buyer's want to be impressed, dazzled, and worried that if they don't get this house now, someone else will. I typically hear and see the facial expressions and the very words "Wow" when a buyer walks up to, and into a home that gives them more than they expected. This reaction can be in any price range.

Features usually include:

• Curb appeal: everything you see is done at or better than the neighborhood standard. The home style, roof, siding, windows, driveway, walkway, landscaping are well maintained and inviting.

• Staging: floor plan is desirable: each room has a purpose; paint, trim, fixtures, cabinetry, flooring are in perfect or near perfect condition; no clutter, closets and drawers are neat and not stuffed to the gills; colors are pleasing to most eyes.

• Price: this is a competition for a ready, willing and able buyer. They're looking at a lot of homes! When you and your Realtor decide on a price, check out your competition, then beat them on price and you will win the sale. Think like a buyer if you're a seller.

The Power of BRAGGING RIGHTS!

Our Real Estate market in Billings Montana has a few foreclosures and a few short sales but we are a long long way away from the numbers you hear about on National TV. National TV however, makes buyers think that there are deals to be made and, most importantly: they don't want to pay more than they think the home will be worth next month. Since our market has not declined in price (but has declined 20% in total number of homes sold) a buyer is taking extra care in shopping.

• They want to feel really good about the deal they're making, so if you're a seller, make them feel good!

• They are likely to want one of the best homes in the neighborhood, not the worst!

• They want to tell all of their friends and family about the home they're about to purchase, along with it's best features!

Give Buyers What They Want and They'll Buy Your House!