Rapid City, SD

So I have been working on a commercial real estate designation called CCIM - Certified Commercial Investment Member. It is a national designation that covers the analyzing of commercial and investment properties for many different applications. My desire for the designation is to have the knowledge to price Rapid City commercial real estate for sellers and determine what is the best investment for buyers. It is also great to have for the networking and referrals. All kinds of fun stuff such as Internal Rate of Return, Cap Rate, Gross Rent Multipliers, Annual Debt Service, Debt to Credit Ratio and other fun stuff.

There are a total of 4 courses to take that are a week long. Then I have to take a national test and provide a portfolio of qualifying experience. It has been said it's kind of like a graduate degree.

So last week I was in Minneapolis for CCIM class 104. Not exactly the normal continuing ed class you can fall asleep at. It was more like:

"Here is module 1, 2, and 3. This is what they talk about. OK! Now let's go to case study 1. Here's what you are going to be doing. Go to work. If you have questions, refer back to the modules. And for homework, study the modules and answer the questions at the end of each chapter."

Uffda. (that's Norwegian for...well...uffda.)

Fortunately, we were in groups of 5 or 6, so we worked together to get through the case studies and help each other understand the concepts.

So that was 8:30 to 5:00 every day (except Wed - which was a day off for the locals to get caught up on their work - but I studied all day long, so I count it) and then the test on Saturday for a couple hours. Talk about brain fry! Driving home, I was getting bored because my mind had shut down...

Good news on the end of all this. I passed the test! Now for 2 more classes...

Onward and upward. As always!

- Tristan

Tristan Emond
Prudential Kahler REALTORS
www.rapidhomesonline.com

The market in August typically seems to slow some. I attribute that to the various big events around town (the Sturgis Rally and Central States Fair), the summertime vacation schedule, and getting ready for school.

It looks like preowned single family homes were down 9% YTD from 2008, and new construction is way down - 35% YTD from 2008.

Average sold prices on preowned homes remain pretty stable, with only a 1.4% decrease from 2008.
Average sold prices in new construction are down 8% from 2008.

Days on market on preowned homes rests 3 days higher (70 to 73), while new construction is up 14.5% at 134 days. AND - across the board, the number of total residential properties under contract is up 75% - so there are things happening!

That being said, more deals are falling apart than normal due to various lending, appraisal and other issues.

So my read is about the same - sales are slower than last year, but the home prices remain relatively stable.


Here are the number of homes sold in Rapid City and surrounding areas by price points this month:

I've developed the following graph to show the selling price points the past 2 months for comparison purposes:




I'm putting together a new radio ad to let first time homebuyers looking to cash in on the tax credit not to wait...it's best to get a deal put together by October 15 to make sure we close by the Dec 1 cutoff.

It's gonna be interesting to see how things happen the next few months. Will we see a wave of buyers trying to jump on the boat at last minute, or is it old news that everyone has kinda turned a deaf ear to? Time will tell.

I do look forward to a positive future and won't be offended at all with an extension of the tax credit or a new one in 2009. It has certainly been the driving force in Rapid City home sales.

Moving forward,

- Tristan

Tristan Emond
Prudential Kahler REALTORS
www.rapidhomesonline.com

It's all about the first impressions...a sale can be made or lost as a direct result of your home's curb appeal. When it comes to selling your home, the first impression is probably the most important impression. If the outside of the property doesn't create interest or appear well-maintained, a buyer may choose to not even come inside the home. Here are five ways to create curb appeal.

Paint and polish. A fresh coat of paint breathes new life into a tired-looking home. If your home looks dull or suffers from peeling, cracked or chipped surfaces, a paint job is a great investment. Polish the doorknocker and mail slot on the front door, as well as any light fixtures by the entry. Re-condition your deck. Consider renting a power washer to clean dirt and mildew from the wood, and then apply an all-weather sealer or stain.

Manicure the grounds. Mow and edge the grass, and trim the trees and bushes. Also, clear away dead leaves and flowers, and mulch and weed the beds. Check to see that tree branches are not touching the home's roof or outer walls. Add some color to your landscape by planting annuals and placing planters of flowers in strategic spots. You can even spruce up the property by hanging flowering baskets. Add flowering plants in the back yard, too.

Make needed repairs. See if anything is unhinged, loose or just an eyesore. Fix everything including broken fencing, windows and screens. Make sure winter's cold weather didn't leave any gutters sagging or loose. Replace any missing shingles from the roof. Try the doorbell. Check stairs and railings. Test doors for squeaks and rusted hinges. Don't forget to take a critical look at the property at night. Make sure the lights work, and replace dim and burned-out bulbs.

Unclutter. Tidy up the deck, patio and back yard. Rearrange the outdoor furniture to look inviting. Put away gardening tools and toys. Clean up the barbecue area. Eliminate any "evidence" of pets, and restrict them to the back yard when showing the home. Move extra vehicles from the view of passersby.

Clean. Clean the windows, inside and out, wash down the walks and driveway, and hose down the siding. Clean outdoor furniture and cushions. Check for oil spots on cement surfaces, especially the garage floor.

The old saying about making a good first impression couldn't be truer than when you are selling your home. Even the smallest enhancements can make a big difference in creating love at first sight for buyers. Come up to your home and look at it through buyers eyes. What do you notice that could be brushed up?

I'm not out to make you work all night long - just present your home in the best possible shape for your buyers to bring you a sale as quickly as possible!

Here to help...

- Tristan

Tristan Emond
Prudential Kahler REALTORS
www.rapidhomesonline.com

OK. So I am a REALTOR. Managing things is alot of what I do. Arrange the showings, inspections, closing dates, walk-throughs, making sure everything is moving along as it should on the other side of the transaction, etc. etc. etc.

But I guess I was not prepared for my daughter to require my services as well.

After kindergarten ended in the Spring, she found one of her friends lived just down the street. Too far for her to walk or bike by herself (well - for our comfort zone, anyway) but close enough to connect with at least once a day...and sometimes even for half an hour before bedtime. Then she pulled out the yearbook and I got on the county website and searched for where her other friends lived. (bruhahahaha...) Since one of those lived across the highway, we had to schedule a play date for them. Since then, she has also befriended a number of other kids in the neighborhood.

A couple days ago, she wanted to go over to Katie's house (not actual name - real names have not been disclosed to protect the innocent......OK, they aren't used because I can't remember them. Guess I should make an Emily folder on my Blackberry...) so I walked down the street with her. Well, Katie wasn't home, so then she said, "let's go to Jenny's house!". We walk a bit further down to her house to find out she was in the midst of supper. And since the girl across the street was gone as well, we had to walk home, destined to play at home wihtout a friend...

I guess I can be glad that we're not worrying about which boys house she is visiting...but the way Miss Social Butterfly is starting, it could be an interesting teenage experience. Especially since she's the youngest and only girl...

The joys of family.

Have a great weekend, everyone.

- Tristan

Tristan Emond
Prudential Kahler REALTORS(r)
www.rapidhomesonline.com

Everyone you know asked for this right? We all enjoy longer waits while thinking about where the couch is going to go and how great the bigger kitchen is going to be and how awesome that flat screen is going to look in the family room. Unfortunately, that is what is happening.

In principal, it's good stuff. In execution, it is making the 30 day close be history. The government is trying to crack down on predatory lending practices. So they are requiring the lending statements be delivered to the client - by mail, not email, mind you - before they can proceed with the appraisal and other parts of the loan. Long story short, lenders are having to jump through more hoops and go through more red tape to get the loan financed and done. There may be a few more documents to sign, more documentation to provide, etc.

But at least we know. Knowledge is power.

So when your sit down to write an offer, plan on a 45 day time frame from offer to close. The verbiage on the purchase agreement says "on or before", so if things move right along and the closing happens early (provided the seller is OK with that as well), then that's just gravy. But pushing for a 30 day close may not be the wisest thing. (well, unless you have cash. Then things move along a bit easier!

Which brings up the point to those first time homebuyers wanting to cash in on the $8,000 tax credit - don't wait too long! My advice would be to get a purchase agreement in place by October 15 at the latest. I would hate for you to miss the Dec 1 deadline! I am expecting things to get kinda busy in November as well - causing a backup of services and lots of demand for things getting done.

If you need help finding a lender to help you, please give me a call.

Never a dull moment!

- Tristan

Tristan Emond
Prudential Kahler REALTORS
www.rapidhomesonline.com