Boise sees slightly improved outlook.

This from the Business Insider, an Idaho Statesman weekly magazine.

ECONOMIC OUTPUT GROWS The Boise region outpaced the country and ranked in the top third of the 100 largest metro areas in its economic growth in the first quarter of 2011, according to a report by the Brookings Institution. The gross metro product, the value of all goods and services produced, grew by sixth-tenths of 1 percent from the previous quarter. The national average was four-tenths of 1 percent.

HOW DID THAT HAPPEN? Brookings analysts say exports played a large role and Micron Technology Inc. has continued to recover. The out-of-country sales have been bringing cash into the region.

JOB GROWTH IS UP, TOO Employment grew by nearly 1 percent in the first quarter. That ranked Boise ninth best among the top metro regions. The growth rate was three times the national average.

HOWEVER... When Brookings crunched the numbers on several economic indicators, the Boise region, which includes Ada, Canyon, Gem, Owyhee and Boise counties, was weaker than other metros in its performance recovering from the recession. The reasons: a naggingly high unemployment rate — which continued to rise as it dropped elsewhere in the country — and the region’s plummeting housing market.

 

 

Idaho's Own Flat Fee Realtor!

I am excited to announce that Lowes Flat Fee Realty is joining forces with companies offering similar options from around the country. One company from each state are banding together forming FlatFeeGroup.com.

We have been working on the overall site and I have been tweaking my state site. It is exciting to be in contact with other brokers and learn of their success and business models. The site is now live and will begin active marketing any day.

We offer such a great program, where you pay a flat fee to get your property into the MLS while still retaining the right to sell it yourself. Either way you save thousands on the sale of your home!

In the near future I will be expanding my service to other parts of the state. Currently I cover from the Twin Falls area to the Oregon line. Likely the Idaho Falls and Coeur d'Alene MLS service areas will be the next ones to add.

If you are thinking about selling your home, I have an option that is a perfect fit for you! Give me a call at 208/386-2992 or shoot me an e-mail roger@lowesflatfee.com.

Results and Savings!

Buyer strategies for negotiating home improvements

Buyers often make mistakes when they buy based purely on emotion. They fall in love with the view or charm of the home, but fail to take into account the ongoing maintenance that will be required to keep the French doors operating properly, the garden looking pretty and the skylights free of leaks.

Home maintenance is generally more expensive on older houses than it is on new homes. However, a poorly built newer home can develop problems in the early years of ownership.

This is not to say that you shouldn't buy a home that catches your heart. Just make sure that maintenance costs are included in your housing budget. If you can't afford the maintenance and you let the home fall into disrepair, its appeal will diminish, as will its value.

Buyers who walk into a listing and know they want to live there are fortunate. Most buyers never have this experience. Usually compromises are made when buying a home. You should make a wish list of everything you'd like to have in a home and then prioritize it. You probably won't find everything you want in one home.

There are a couple of issues that complicate homebuying decisions in the current market. One is how to deal with deferred maintenance. Another is: How do you evaluate improvements you want to make to the property for your own enjoyment? When home prices are moving up quickly, buyers don't give much thought to these matters.

HOUSE HUNTING TIP: You have several options when the house you're buying has been neglected by the seller. Let's say there's $10,000 of termite work recommended in an inspection report. One option is to ask the sellers to have the corrective work completed before closing.

Sometimes there isn't time to have the work done before closing. Or perhaps you want to incorporate improvements into correcting the deferred maintenance, in which case you might not want the sellers to do the work.

For example, if the bathroom floor needs to be replaced because of water damage to the floor joists and the shower pan leaks, you could redo the entire bathroom to your taste, if you could afford to. Even if you just want to replace the floor and redo the shower, you might prefer to use finishes that you select.

In cases where you don't want the sellers to do the work, reduce the offer price by $10,000 and buy the property "as is" regarding the termite work.

Buyers who don't have extra cash for repairs could offer a price that doesn't reflect a reduction and ask the sellers to credit them $10,000 in escrow to be applied to their nonrecurring closing costs. Even though the buyers pay a higher price, they bring $10,000 less to closing -- money that can be applied toward deferred maintenance.

Almost any home you buy will need modifications so that it will satisfy your taste and intended use of the property. Perhaps the house lacks a developed backyard or deck. You might not like the color scheme. It may look too plain; you envision spending money to improve the curb appeal.

Most people feel they should recoup investments they make on improvements when they sell. However, studies have shown that most remodel projects don't pay back 100 percent of the amount invested. For this reason, you should select your projects carefully and keep resale value in mind.

Making changes to a home to make it reflect your taste improves the quality of your lifestyle while living there. It's hard to quantify this. The longer you live in the home, the more valuable the enhancements will be to you.

THE CLOSING: Before improving your new home, make sure you won't be over improving for the neighborhood.

Courtesy of InmanNews

Boise's 100 year old trees-"City of Trees"

I was down in Boise's North End previewing a home and appreciating the massive trees and enjoying the peaceful feeling that all the trees bring forth in me. For me, looking down Harrison Blvd is always a treat.

I remember as a youth, the first time I flew into Portland with it's forest of trees, my first question was why do they call Boise the "City of Trees." In contemplating that,  I suppose it likely came from the large disparity in the "old days" between the surrounding area of desert sage brush and the trees located along the river. If you are traveling through trees a city with trees would not beg mention. But I can only imagine the welcome sight of shade after approaching Boise from the east and all that barrenness. That "lovely" drive from Mountain Home to Boise is still mighty barren!

I do enjoy this "City of Trees!"

Buying A Boise-Nampa Metro Area Foreclosure?

A lot of the foreclosures that are available need some cosmetic work to make them more livable. Many times buyers may overlook these homes even though they are often the best values because of the cost invovled in bringing them up to what they would consider living in.

There are a couple of great loan programs currently available that addresses this exact issue. The FHA 203k streamline and HomePath Renovation Loan. I use a great mortgage lender that can offer both of these programs, and show you the advantages and differences between the two.

I will provide the highlights of both.

 

The FHA 203k And FHA Streamline 203k Loans

Highlights of the FHA 203k streamline loan include:

• It works very similar to a construction loan – it allows you to purchase a home that wouldn’t qualify for FHA financing due to repair work being needed


• The loan amount is equal to the purchase price of the home plus the amount needed for repairs


• FHA 203k streamline program allows for repairs ranging from $5,000 and $35,000


• Qualifying for FHA 203k loans are the same as regular FHA loans


• Repair work cannot begin until loan closes and the money to pay contractors comes from an escrow account set up when the loan closed


• FHA 203k loans require UFMIP and MIP just like regular FHA loans


• Appraisal required


• Currently available for owner-occupied properties

Fannie Mae HomePath Renovation Loan

When the housing downturn began and Fannie Mae started owning more homes than ever before, one of the things Fannie Mae did to help move the homes to new owners was to design the HomePath mortgage program.

The HomePath mortgage program has two different programs within it – the HomePath loan and the HomePath Renovation loan.

For homes that are in need of repairs, the HomePath Renovation loan is the loan program that is often compared to the FHA 203k loan when weighing options.

HomePath Renovation loan highlights include:

• The property must be currently owned by Fannie Mae


• The loan amount is for both the home and the repairs required for the home


• Repairs can be up to 35% of the as-completed value, but not to exceed $35,000.


• Down payment requirements can be as low as 3%


• Fixed or adjustable rates are available


• No mortgage insurance required


• Investment properties or 2nd homes and investment properties are allowed


• No appraisal required

HomePath Renovation Loan Or FHA 203k Loan?

• Is the home owned by Fannie Mae? If yes, it probably makes the most sense to get a HomePath Renovation loan.


• Is the home owned by someone other than Fannie Mae? If so, then your best option is the FHA 203k loan.

 

So before you eliminate a potential home it may be beneficial to weigh a couple of these loan options. The home of your dreams may be just a specialized loan program away.

I Hate It When....

I read this article and thought it was worth repeating here, if you are see yourself, then please STOP.

Real Estate Agents Hate It When Sellers …

June 15, 2011 · 1 Comment

It’s no secret that home sellers are under a lot of stress. It’s a tougher market, home prices have fallen a lot, and many are trying to get as much money as possible to recoup their investment. We feel your pain and we’re on your side. But sometimes, sellers do things that make it harder to sell a home for what it’s worth.

Here are four things sellers do that make their real estate agents cross their fingers, and hope for the best.

1. Sellers who think their property is unique and therefore worth more money.

A seller’s home is special to them; they’ve put a lot of heart, soul, and money into fixing it up. It may be where they started a family or built a lifetime of memories. Most agents get that, but trust me, unless it’s the Winchester Mystery House, most properties aren’t that unusual.

When a seller believes their home is unique, however, they also believe it’s worth more and can fixate on an asking price that’s too high, despite the advice of an agent. If it’s priced too high, a home will sit on the market for months. Unfortunately, nine out of 10 times, the seller will end up selling for less money than they would have gotten if the home was priced appropriately from the start.




2. The seller doesn’t clean up the home.

Sellers: It’s important to pick up the home before a showing. Potential buyers touring a home probably won’t appreciate stepping on a child’s toy or fail to see the charm of a dog’s discarded tennis ball. Buyers want to feel that a home is clean and well maintained. If it’s not, they’ll likely move on to the next.

3. Sellers who hold out for extra money at the last minute.

Say a buyer made an offer that was $40,000 less than what the seller wants. The agent and the buyer’s agent have gone back and forth with a series of counter offers. The seller is only about $3,000 from their dream price but they insist on trying to squeeze another $1,500 out of the buyer.

During escrow, the buyer may find a reason to ask for that $1,500 or more back in credits anyway. In demanding more money, the seller may have created bad will, as well as stressed those involved in the purchase. When it comes down to it, extracting that last $1,500 may actually cost the seller more at the end of the transaction.

4. Sellers who don’t clean up before turning over the keys.

Sellers should imagine themselves as the future buyer. Would they want to walk into their new home and find 12 cans of old paint in the garage? Or an old sofa with a broken leg in the attic?

The tip to sellers is to try to make the home as spotless as possible for the new owners. They’ll appreciate it and so will the agent. And besides, it’s good karma.

Courtesy of Harris Real Estate University.

 

Boise Take a Look, is this the New American Dream?!

I saw this cartoon today, it made me chuckle because it seems almost realistic at times.

It can be tough out there, but if  a home is priced to our current market,  there are buyers ready to buy. Especially in the more affordable ranges.

Pricing correctly is so very important. In a traditional appreciating environment, the market eventually catches up with an over-priced property. But in today's market it is left high and dry!