Gem State Guide

Holiday Decor

2009-11-23T11:11:00.000-08:00

If you are like many this holiday season, you are pinching your pennies.

So here are a few ideas to help your holiday dollar go farther.

Want to spruce up your place? If you are looking for some creative decorating ideas for your home this season, be sure to check out HGTV's website. They have lots of great design ideas... some of which are very simple and inexpensive!

Holidays aren't the same without great food! For festive food ideas, you may want to look at Food and Family by Kraft. Most of it is simple and uses common everyday ingredients that you can find on sale throughout the season.

Finally, if you are looking for creative gift-giving ideas that definitely focus on giving to those less fortunate, check out Samaritan's Purse. They help give the greatest Gift of all as they meet physical needs of those they serve.

New Tax Credit

2009-11-20T09:12:00.001-08:00

Putting it All Together

2009-11-13T09:48:00.001-08:00

WA State Housing Finance Commission Video

2009-11-09T09:51:00.000-08:00

Extention News!!

2009-11-05T09:39:00.000-08:00

The homebuyer tax credit, due to expire at the end of November looks like it is going to be extended through April 30, 2010!

What does this mean?

First of all, first-time home buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the original November 30 deadline.

Second of all, there is an addition to this legislation! This new legislation makes "move-up buyers" (aka not first time home buyers) as well as first-time buyers eligible for a credit. The $8,000 maximum first-time buyer credit will continue, but additionally a new $6,500 maximum credit will also be available to move-up homeowners who have lived in their current residence for 5 of the last 8 years.

It is important to note that these credits continue to only apply to primary residences... not vacation properties.

The tax credit has seems to have stimulated the housing market, placing existing home sales at the highest level in more than 2 years.

So whether a first time buyer or a move-up buyer, this new legislation could help you achieve your real estate dreams!

Rent Vs. Buy

2009-10-30T09:07:00.001-07:00

HOME for the holidays...

2009-10-29T10:49:00.000-07:00

Are you looking for a new place to hang your hat... or your holiday stockings?
While you may not quailify for the first time home buyer's credit at this point, there is still time to get you into a new home for the holiday season.
Prices are still low as are the interest rates. And there is a lot of inventory to choose from.
Imagine the smell of the freshly cut Christmas tree in your new living room that has plenty of room for opening presents... as well as a dining area big enough for the family feast.
Give yourself the gift of home ownership this holiday season. 'Tis the season to be HOME for the holidays!

Don't forget the deadline!!

2009-10-15T10:37:00.000-07:00

If you are thinking of purchasing your first home, this really may be the best time to do it. Not only are there super low interest rates, but first time home-buyers making a purchase may receive a tax credit of 10% of the purchase price up to a maximum of $8,000.

The inventory in the Valley continues to be high, and there are lots of great houses to choose from in practically every price point. Lenders are waiting to help you!

But here is the catch... in order to do this you much CLOSE by November 30, 2009. That means you need to be looking today and getting into contract as soon as possible in order to meet that deadline!

Hurry to take advantage of this amazing offer today!

How Interest Rates Impact You!

2009-10-08T10:04:00.001-07:00

One simple step to getting out of debt...

2009-10-01T09:30:00.000-07:00

In these more challenging economic times, many people are trying to lower their debt load.
While it takes definite self-control, planning, and intentionality to get rid of already existing debt (check out www.daveramsey.com), there is a simple way to help yourself not get into further debt. You can call 888-567-8688 to opt out of receiving pre-approved credit card applications in the mail. While it probably won't stop all offers from coming to your mailbox, it should significantly lessen them.
If you do happen to still receive some, toss them. And for added safety, shred them. That will not only protect you from more debt, but also from anyone finding the discarded application and stealing your identity on a new card.

Will there be an extension of the Home Buyer Tax Credit?

2009-09-24T09:28:00.000-07:00

In this recent article by from Realty Times, author Kenneth Harney gives some insight into the possibility. Check it out!

http://realtytimes.com/FinancialWire/pages/1.102_1taxcredit.htm?opendocument&ID=joewoodside

An interesting article to ponder...

2009-09-17T09:38:00.000-07:00

I came across this article a few weeks ago and have been pondering it ever since. I thought you might find it interesting...

It addresses the (author's opinion of the) "real" reasons people buy real estate from a fresh perspective. The author, David Curry, is a Realtor from Lake Geneva, WI, and yet I think his ideas can apply to us in the LC Valley as well!

http://www.therealrecruiter.com/company/company_data/pvsouthbayrecareer/news/20090904155500Why%20Buy.pdf

Final thoughts on the state of the market...

2009-09-10T09:14:00.000-07:00

In closing, I just want to encourage you. I want you to know that even though there are tough times going on with job cuts and businesses and health care and the economy, the sky is not falling. The Lewis Clark Valley has been through times worse than this, and we are going to come out strong and better than ever.

The real estate market is in a slower state than normal, but by no means is it lifeless. Hopefully with some of the information I have given you today you can make better, more informed choices as you buy, sell, and stay put here in the Valley.

Next time I will like look at some of the "real reasons" people buy... or should buy... houses.

First Time Home Buyer Credit

2009-09-09T13:02:00.000-07:00

The State of our Market... Part 8

2009-09-03T10:26:00.000-07:00

For many of you, the idea of buying or selling right now is not appealing. However, when I mentioned the low interest rates in an earlier post, that got your mind spinning. How do you know if you should take advantage of the lower rates and refinance your house?

Well there are a few rules of thumb to keep in mind.

1. Choose a reputable lender. Check their fees and costs. This will save you grief and heartache. I suggest also that you get a LOCAL lender. We have seen people burned over and over who find these ”great deals” on the internet that wind up costing thousands of dollars and awful fees and penalties later on. Using a local lender who you have heard is good is advisable.

2. If the interest rate is a full percentage point less than what you currently have, it may be worthwhile. For example, if you are sitting at 6.125, and you can get 5 or below, it will save you lots in a monthly payment.

3. It will cost a few thousand dollars to refi. Most lenders are totally fine rolling the costs into the loan so there is no out of pocket cost. While that is nice, you need to determine how long you are planning to stay in your house and if the cost is worth it. How do you do this? You figure out how much per month you are going to save. Then you divide that number into your costs to see how many months it will take to pay off.

For example, you owe $180,000 and decide to do a simple refi. Your new loan would be for about $182,400. But with your new interest rate you are saving about $150 a month in your payment. So you divide $2400 by 150 and find that it will take you 16 months to recoup the fees in your monthly payment savings. That is the mathematical way to do it. Some people just like saving money and getting that monthly relief, and the math doesn’t matter. They just like the lower interest raten and lower payment each month!

4. Don’t get tempted to pull out ALL of your equity. If you have a reasonable project that would be a good investment to do, such as a kitchen remodel or bathroom, that may be fine. Just make sure to pull out only what you need to do the project and then leave some wiggle room of equity in case you needed to sell tomorrow.

5. Finally, realize that not everyone is getting the super low rates. Lots of people are getting great rates. But these SUPER low rates are for people with equity and good credit scores. It is a combo of those two factors. So how do you work on getting that great credit score?
This report came from MetLife Home Loans, a division of MetLife Bank.

Credit scores range from 350 to 850, with 850 being the best possible credit score you can receive and 350 being the worst. There are five factors that determine your credit score:

YOUR PAYMENT HISTORY: 35% impact on your credit score... pay your bills on time.
THE BALANCE OWED VERSUS YOUR AVAILABLE BALANCE: 30% impact... keep balance at 50% of available.
YOUR CREDIT HISTORY (HOW LONG ACCOUNTS HAVE BEEN OPENED): 15% of your score.
THE TYPE OF CREDIT YOU HAVE: 10% of your score. A variety of credit is best.
THE RECENT INQUIRIES INTO YOUR CREDIT: 10% impact. The less inquiries, the better.

Keep the above factors in mind and use them to improve your existing credit score. Most, if all, loan rates are based heavily on your credit score; be sure to take advantage of the lowest rates by keeping your credit score high.

And for those Dave Ramsey fans out there who just tuned me out for that part, I want you to know that I am happy to work with you on your purchase or sale keeping his principles in mind!

Real Estate Radio

2009-09-01T08:59:00.001-07:00

The state of our market... Part 7

2009-08-13T09:59:00.000-07:00

So now that you know what to replace and when, I am sure you are interested in knowing what your house is worth after all this work, time, energy, sweat and tears!

The best way to determine your home’s real value is by calling a good real estate agent.

So how do you find one of those? I promise I am not going to make this a big commercial about myself. But here are some facts to take the emotional out of choosing an agent.

1. Referrals. Who have your friends and family used that they LOVED? Ask around.

2. Who does a lot of business? You need to ASK the agents that you interview how many houses they sold last year. You may be shocked. Approximately 50% of the agents in our Valley sell about 5 houses a year. FIVE. Conversely, there are about 8 of us who sell more than 30. I am one of those agents. I sold more than 50 houses last year. There was only one other agent close to that. Ask the agents you interview how many they SOLD. That is where the rubber meets the road.

3. Who do you “click” with? Does the agent seem approachable; use a communication means and style that works with you? This will be super important as the process unfolds.

4. Who is most realistic? Now this may seem like odd criteria, but it is very important. Most sellers list with the agent who SAYS that they can get the most money for the house. For instance, you have two agents you interview. One says that they will list your house at $250,000 and the other says they will list it at $223,000 based on the market comps. Seems obvious that you would want to list with the agent suggesting $250,000. But is it? The questions you need to ask both agents are the same.

 How many houses did you sell last year?
 How many listings do you have now?
 What is the average days on the market for your listings?

You may all of the sudden find that the agent who wants you to list for $250,000 has lots of listings that have been sitting for a long time, while the agent who suggests $223,000 is selling houses and getting the job done.
It is better to go with REALITY … what the comps are saying… and the agent who gets the job done and right… than to simply list for $250,000 wait for 2 months with no action, then have to reduce the price over and over to finally get it down to the $223,000 that the realistic agent suggested months before.

But what if you are not ready to sell, but are thinking of refinancing? We will look into that next time.

The state of our market... Part Six

2009-08-06T10:53:00.000-07:00

So what are the good improvements to make? Where will you get a good return?
Well, those actually are two entirely different question and issues.

When it comes to what improvements to make, it depends on what you want and what you like. If you are planning to live in your house and you want something, there is something to be said for simply enjoying your home and doing it… as long as it is not too odd or too funky.

For example, if you really want to put in a koi pond, do it. You will most likely not see any money back from the project, but you will love it and it will improve the overall look and feel of your property.

However, if you are looking to invest in things that won’t just make you happy but will be excellent investments as well, then you need to focus in on two areas: kitchen and bathroom. So let’s take the mystery out of this, and again let’s go to the facts.

According to a survey of buyers, here is the list on what to invest in so that you please the most buyers!

36% want a separate shower enclosure in the master bath
31% want an eat-in Kitchen
24% want high-end appliances
23% want granite countertops
21% want a kitchen island

Now obviously we can’t all make these a reality in our houses, but it is just a good general rule of real estate that reasonable, neutral improvements and remodels to both bathrooms and kitchens prove to be excellent investments… and they tend to make your house so much more saleable.

Another interesting set of rooms to focus on would be adding on or remodeling a master suite and a family room. Again, these additions or remodels rarely bring in 100% of their cost back to you, but they tend to get back about 80%. And again, they make your house more appealing to the buyer and for you as you enjoy living there!

Another thing to be thinking about is what you NEED to be investing in as time goes on. When the barn needs painted, paint it, as they used to say. Too often, people let these issues go and have a lot to do to get ready when it is time to sell. It also proves to do be far more expensive to do reactive maintenance than pro-active maintenance! Here is a list that may be helpful as you assess what needs to be replaced and when.

10-20 years
Aluminum windows: 15-20 years
Asphalt shingle roofs: 20 years
Dryers and Refrigerators: 13 years
Air conditioning units: 10-15 years
Furnaces: 15-20 years
Interior and exterior paints: 15+ years

5-10 years
Heat and smoke detectors: 5-10 years
Dishwashers: 9 years
Microwave ovens: 9 years
Carpet: 8-10 years

Next time, we will continue our discussion by looking at actual house values.

The State of our Market... Part Five

2009-07-23T10:07:00.000-07:00

I want to switch gears right now and deal with a few other topics that may answer some of the other questions you have on the market and on housing in general.

How much lower will the values go here in the Valley?

As I said previously, we are seeing houses valued at about what they were worth in 2004. It appears that things have stabilized a bit for now, but no one can be sure. I think that it is important to remember that like most investments, real estate is best an investment when it is for the long haul.

Over the last 8 years, there has been a lot of “flipping” going on the market. In fact, there has been so much of it that there have been TV shows featuring the real life drama of it!  However, now that the market is not skyrocketing literally by the year, the time for that is probably done. It is now time to go back to the “old-fashioned” way of buying a house that needs some stuff done to make it your own without the thought that in 6 months you will turn it for a huge profit. It is time to view your purchase again as your HOME. Not a house you will flip. When you do this, and you live there for a while making wise choices in improvements, in time it should be a great way to build equity and see an increase in your investment.

Again, these are just my opinions...

Next time we will discuss the best improvements to make in your home.

The State of our Market... Part Four

2009-07-16T09:36:00.000-07:00

Now, what about these foreclosures that we keep hearing about? It is everywhere, isn’t it?! We hear about it all over on the news, and it seems that we should all be able to get a great deal if we can just sniff out that one fabulous foreclosure.

Let me give you a few facts about foreclosures.
1. While there may be lots in other areas, we don’t have that many here. In talking with the owner of one of our local title companies, he said that of all the homes that were closed by them last year (and there were hundreds), only 5 turned out to be that true foreclosure. There are just not that many of them.
2. Foreclosures, unless they are the RARE ones that go to the courthouse steps where you bid and pay CASH (no loans are accepted!) at that exact moment to get a house, are priced at FAIR MARKET VALUE. They are listed just like every home on the MLS. The banks are not giving them away. In general, you are going to pay the same amount for a house owned by the bank or owned by a person for the same price. The word “foreclosure” is NOT a code word for bargain.
3. The purchasing process can be filled with twists and turns, and the banks are the ones who WILL win. We just had an offer on a house that was accepted. The next day, even though we had a legally binding contract on the house, the bank took a different offer and our buyers were left in the cold with no recourse. The banks always get their way, and it is a frustrating process for the buyers.
4. It is the same deal with short sales. A short sale is when a home is offered for and sold for less than what the bank is owed. We are seeing these in the Valley, and again they are tempting. However, the banks continue to be in control and are certainly not interested in you or the seller. They just want the most money.

I know that it is tempting to hear all about foreclosures and that friend of a friend who got that great deal … but I am telling you that most of that is simply not true. It really is wise to find a good agent to help you find the right house at the right price for you, whether it be an owner-owned, short sale or foreclosure. Look for the right house, not the title on it.

What is the state of our market? Part Three...

2009-07-09T09:53:00.000-07:00

Previously, we talked about what to expect if you are a buyer in our current market.

But what if you are a seller? Should you be feeling hopeless? No, but let me give you some helpful information as well.

If you do not need to sell, don’t sell. It is true that values have dropped. So you will not get as much for your house as you would have a few years ago. Now, I cannot look into the future, but we are hopeful that prices will go back up at some point, and in looking at trends we have no reason to assume otherwise. So if you are happy with your house, then sit still.

If you are in over your head, meaning that you bought when the market was at the top and/or you have refinanced in the last few years and pulled money out, you should sit still as well. I would highly recommend waiting for prices to go back up and not be tempted to pull out any more money from your home value unless it is for an improvement that will be a real winner. (We will talk about those later.)

Now, if you have owned your home for more than 5 years, you probably have some equity. Listen up! This may be a great time for YOU to sell. Why? Because the house that you have dreamed of that may have previously been out of reach may be attainable now. Remember how I said values and interest rates have come down making it the buyers “perfect storm”? Well, you could be one of those buyers. Now I know some of you are saying, ‘But I am not going to give my house away or take a loss on it. I paid $200,000 for it and I am not going to sell it at $180,000!” That is fine. But I would encourage you to think this through. If you sell for a “loss of 20,000” but are able to get the house you had your eye on that was once $300,000 that is now $240,000…. Maybe it is worth it to take your $20,000 loss to save $60,000! You have stepped into what is likely going to be a great investment while buying at the market low and getting a great interest rate to boot. Just food for thought!

Next time we will look at the truth about foreclosures. Stay tuned@

What is the state of our market? Part Two

2009-06-25T09:52:00.000-07:00

In our May 19 blog, we began look at our current market conditions, spearating rumor from fact. Let's continue the discussion...

As a Buyer… Contrary to what you may have heard, this is the time to buy!!! Interest rates (which I will discuss more in a later blog)are at close to HISTORIC lows. Last month we were seeing refi’s (which I will ALSO discuss later) on a 30 year loan and on home purchases still around the 5% mark. This is the close to lowest they have been in my 15 year real estate career.

All of this means your purchasing dollar goes farther. For example, in 2001, the average rates we were seeing on a 30 year mortgage were at 7%. So let’s say that I had a client buying a house back then for $150,000. Their monthly payment would have been $997.95. Today, buying that SAME house at that SAME price, their approximate payment would be $760.03. That is a monthly savings of $237!!! You are certainly getting more bang for your buck today!

Additionally, housing prices in the Valley are lower than they have been in 4 years. It has been my experience these last few months that in general houses are selling for what they would have sold for back in 2004. This is a far cry from what they would have sold for back in May of 2007 when we were hitting our value peak here in the Valley.

So if you look at both the combination of interest rates, lower prices, and the amount of inventory to choose from, you see that we have created a “perfect storm” in which to buy a home!

Add to this that if some of you are interested in being a first time home buyer, the government is offering some big tax incentives right now. I want you to write down this link if you are a first time home buyer: http://www.federalhousingtaxcredit.com/. According to this site, a tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid. This is amazing news!
So we see that the FACTS are telling us that it is a great time to buy, even if the news is telling us it is the time to fear.

In my next post, I will focus on the other side of the coin: What a seller should know in our current market.

Check this out! We are #1!

2009-06-16T08:26:00.000-07:00

According to a recent article in Outdoor Life Magazine, Lewiston is ranked as the #1 spot in the US for "Affordable, thriving and perfectly wild towns in America." So if you are interestedwhat Outdoor Life presents as the 2nd Annual Top 200 Towns for Sportsmen, check out this link.

http://www.outdoorlife.com/photos/gallery/hunting/2009/05/top-200-towns?photo=10

Some positive news...

2009-06-11T11:04:00.000-07:00

The following article was taken directly from the Lewiston Tribune and highlights what the market appears to be doing in our community.

Most property values in Nez Perce County remain stable
By Sandra L. Lee of the Tribune

Saturday, May 2, 2009

East Main Street businesses, apartments and farm ground are seeing the greatest increases in property values this year, Nez Perce County Assessor Daniel J. Anderson said.

However, most property owners in the county won't see any dramatic changes - up or down - in the notices going out late this month, Anderson said.

"The majority of folks are going to see a level (value) or an actual decrease, a small decrease," Anderson said.

The exception is East Lewiston commercial property that will rocket up 29 percent after being unchanged the past five years. The assessor's office looks at a different part of the city or classification of businesses each year. Averaged, East Main has gone up about 5 percent a year, he said, but it's still a good value compared with other commercial areas.

For instance, the downtown area west of Lincoln Street last year averaged increases of 9 percent for land and 22 percent for improvements.

Based on past sales, values of $1.50 a square foot on East Main will go to about $1.93, or $2 up to $2.60, none of which are anywhere close to Thain Road or 21st Street values, he said.

Throughout the county, apartment values are going up an average of 13 percent and farm ground by 10 percent. Condominiums will increase an average of 2 percent to 3 percent.

The county is seeing the reverse of what happened when residential values were escalating wildly in parts of the nation, but seeing relatively modest increases here, Anderson said. Now, homeowners in some of those regions are finding their houses are worth less than they owe, but values here are either flat or within a percent or two up or down from last year's values.

Where there are increases in residential properties, it's likely to be a couple percent, up to about 7 percent for newer manufactured homes in courts and parks, Anderson said. Manufactured homes on their own lots, however, are flat or even down a bit.

The more moderately priced houses, up to about $150,000, will see about a 5 percent raise.

"A case could easily have been made that I could have raised almost all property 5 percent because last year 70 percent of the sales sold for more than we had just raised them to," he said

"I'm given latitude by the State Tax Commission to be within a range based on the actual sales that occur between 90 percent and 110 percent. We're statistically setting around 95 percent, and I have opted to take a wait-and-see attitude as far as what's going to happen with sales in 2009."

Anderson said a couple things are protecting the market here. One is the continued stability of employment at places like Clearwater Paper, ATK, Regence BlueShield, St. Joseph Regional Medical Center and Lewis-Clark State College. There also wasn't a large stock of houses built on speculation, such as existed in other locations, to drive down the market.

New housing starts are down somewhat, but haven't stopped completely.

In 2008, permits were issued inside Lewiston for 40 new residences and seven manufactured homes. Permits for 15 of those stick-built houses and one manufactured home were issued in the first four months of 2008, compared with 10 house permits and two manufactured homes in the same period this year, according to Sarah Redenbaugh, permit representative with the Community Development Department.

---

Lee may be contacted at slee@lmtribune.com or (208) 848-2266.

What is the state of our market? Part One...

2009-05-19T09:44:00.000-07:00

There are lots of interesting rumors, truths and lies going around related to our market. Most of this stems from the national state of the economy and the news we are being fed on the internet, television, and newspaper: that we are in a dire state and that the sky is falling.

While it is true that there have been times that the market has been hotter, we are in no way in a state of emergency. Foreclosure facts and figures even from places as close as Boise have little real affect on us. We are impacted by the national and state issues, but we are not strangled by them either.

So what does our local market look like right now? The following are some numbers pulled by my brokers in the last few months.

There are currently approximately 390 homes on the market. Most of these are 3 and 4 bedroom homes, and their average list price is around $228,000.

Last month, approximately 31 houses sold. Their average sale price was $150,800. They sat on the market an average of 158 days. They sold for about 94% of their list price.

Examining these numbers, we learn a few facts about our market.

1. The lower priced houses are selling. We are seeing that houses priced under $150,000 have a good chance of selling.
2. We have 12 months of inventory sitting there. In a fast paced market, we usually have about 3-4 months worth.
3. If you are planning to sell, you need to expect even if you are priced right to sit on the market for a good 5 months.

Over the next few weeks and posts, I will explain how these numbers affect you!