Wanda Thomas, Billings Montana Real Estate

The cheapest price is not necessarily the best deal. Networking is crucial for everyone in a community. Healthcare, energy, manufacturing, construction, food industries, etc. all need each other, why not support those industries right in your own town?

I know I'm much more likely to do business with someone who does business with me, it's just a reciprocating endeveor. Heck, my hairdresser is not cheap, in fact she's pretty expensive, and really, really good at what she does. I don't mind paying the going rate for excellent service, especially when she sends me clients as well.

When I need to contract to have something done around my home (that I can't or won't do myself), who do I call? I call the local guy, he's not cheap either, but do I get my money's worth? You bet! I don't get an excuse for why something didn't work out, or why that wasn't in the bid, I get what I wanted! And, if it fails for whatever reason, I know I can call and have my phone call returned, along with a fix ASAP.

It only makes sense that if the local economy is strong, my business will be strong as well. I like working with people I can look in the eye. Bless the international business community, but they really only care about my dollar, not me.

Want a strong local economy, buy good stuff and services from good people, right in your own home town!

Today I got the usual question about our local Real Estate Market from a group of medical people (friends) and I had some hard truth to tell! Our 2nd quarter of 2009 is not performing as well as I'd hoped!

I'll try to give you a few numbers, just so you can chew on them for awhile.

The volume of dollars in residential sales in areas 1 - 10 for the 2nd quarter of 2007 was $136,484,281.

The volume of dollars in residential sales in areas 1 - 10 for the 2nd quarter of 2009 was $96,306,411.

The average price of a residential home in areas 1 - 10 for the 2nd quarter of 2008 was $204,023.

The average price of a residential home in areas 1 - 10 for the 2nd quarter of 2009 was $191,845.

I compared the volume for 2007 to 2009 just because that's our all time high in the last few years. 2008 volume was $124,045,825.

We've also lost volume in number of sales. In 2008, during the 2nd quarter, we sold 608 units, in 2009 during the same period we sold only 502 units.

Take heart, those who priced their homes correctly for this market struck paydirt: 222 of those 502 units that sold in the 2009 period were under contract in less than 30 days!

Only one home over $500,000 closed during that quarter!

FHA loans are cooking right now with more FHA loans than conventional for the first time in 4 years. 222 FHA loans to 161 conventional loans. Just to compare, in 2007 FHA loans were 85 and conventional loans were 466 (those were the days my friend).

More homes are qualifying for FHA loans with a few minor defects this year, where as for the last couple of years we had way more conditions that needed to be fixed prior to closing. Appraisers are looking hard at Value for the neighborhood.

Lenders are hoop jumping through more and more, ever-changing underwriting, they must sit and wonder, what the heck will I run into on each and every loan. If you have a decent credit score, a job and a good debt to income ratio, you can get a loan. Oh and don't forget the first time home-buyer tax credit, I've had a few of those happen, and it really makes the buyers happy. I love happy people.

I tried to check my crystal ball to see what our future holds, but all I see is fog! Remember to price your home for the current market, and it should sell. The best homes go for the most money. After all, as a buyer will say on almost every house hunting excursion lately, "I'm lookin' for a deal...I can afford!"

"I'm not paying for their lender title insurance, they can pay for that themselves!"

"But remember, you agreed to when you agreed to help the buyer with some of their closing costs and prepaids."

This was a client Realtor discussion over the phone recently by an agent who had a mail out closing for a seller. The deal was very long and drawn out due to the nature of the sale and lender "needs". But once the deal was nearly done, maybe because it had been so long since the buy/sell was agreed upon, the seller just had a hard time wrapping their mind around what all of the costs on the settlement statement mean.

I can't blame them, it's somewhat a bunch of gobblety goop. Thank goodness, most of the time, the closing agent can sit down in a third party way and explain what the heck all of the settlement statement items mean.

Whatever net sheet for the cost of a sale a Realtor prepares for their seller client, the seller must keep in mind that the numbers are estimates, based on a sales price which is still unknown, for sure. Some numbers just can't be pinned down until there is a closing date in mind, such as:

• payoffs for first and second mortgages
• taxes
• HOA fees
• any ongoing daily or monthly fees that will transfer to the new owner on closing day

The Title Insurance Policy is determined by the final purchase price, which may include seller paid closing costs.

Commissions are determined by the final purchase price as well.

If the seller agrees to pay $3,000 of a buyer's closing costs, those costs will come out of whatever the purchase price is. When a seller looks at their settlement statement, it will have their costs to close as well as $3,000 of costs that the seller will pay for the buyer. Most of the time, no one really knows which of the buyer's closing costs will be included, and to what degree, until the lender and the Title Company Closing agent agree to them. That agreement may not be until the day before closing.

The contracts used for listing a home and purchasing a home are the agreed to directions for how the settlement statement will look. When you're the seller, you won't pay for the buyer's lender title insurance policy, unless you agreed to help them with closing costs in your buy/sell contract.

Don't worry, there is a whole bunch more to the settlement statement than I've mentioned here.

I have two scanners that scan one page at a time, but now I'm scanning a whole document. I know, maybe you all have been doing the whole document for some time, not me, one page at a time (accept) then the next page.

This whole upgrade cost me $145 after my $90 coupon from Costco. I sent out a little announcement on my Facebook page and low and behold, lots of people already do this. However, more people than you would think don't even own a scanner!

I'm trying to improve my home office equipment and make it so I don't use as much travel time for things that can be emailed. I really like having all of my correspondence and files in a folder where I can just pull them up at one time. Another techy person told me to use my One Note program. Apparently you can easily group things together. I guess I should work on that as well.

I am so impressed by all of the techy people I encounter on AR. I still want to get a blog signature that has a button link to subscribe or email me. I know the info is out there, getting it done, now that's the question.

If any group deserves the $8,000 tax credit, I think people moving from a POS trailer, not on a foundation, on a rented lot, SHOULD!!!

This group has been left in the dust I think, and they have some of the hardest time making the move up. They think their trailer is worth more than it is, old trailers are nearly impossible to finance if they can find a buyer, and they want to live in a home with a real foundation and a yard.

I think this particular buyer has a definite place in the first time home buyer market-place. Some of the folks I'm dealing with qualify for a decent home, they have the down-payment and they have a buyer for their trailer, but they do not benefit from the tax credit.

Is a renter a better first time home buyer than someone who has owned a trailer? I can't value a trailer (mobile) as Real Estate.