The Spokane-Coeur D’Alene Home Guy Blog

Now I may be accused of being a bit biased here, BUT take what I’m about to say seriously.

Many argue that the as home prices across the country continue to decline that they intend to wait until it “hits the bottom” before they jump off the fence and buy.  Now it’s difficult for anyone to predict where the bottom is, and many times the bottom passes and on the slight incline the economy takes on it’s first few weeks of recovery many start to buy.

As the economy recovers interest rates will rise again.  Take for example a 5.5% loan on a $218,900 mortgage (the rate some people grabbed a few weeks ago).  They could expect to pay around 994.31 / month.  If home prices were to drop 10% over the next year, to bring the home price to $197,010 and finance at a mere 6% - the payment would be $994.94 - not much difference.  It pays to do the math - either way you’re going to pay about the same out of pocket.

Where someone potentially gains is if the market completely rebounds to it’s previous numbers, but I highly doubt that will happen quickly.  The market corrected -  and that’s a healthy part of any economic situation.

For more information on this article visit rightonyourmoney.com

Tags: In The News by Spokane Home Guy (509) 990-7653
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Selling Real Estate isn’t what it used to be.  During hot markets many homes can sell themselves.  I’ve had clients tell me of markets in other states, where before the sign hit the yard - multiple offers were already presented, many times accepted.

Spokane & Coeur d’Alene aren’t like that - at least right now.  The market is not slow, but you need a profound understanding of your competition, past sales and you need to get showings.  When houses don’t move as fast, people look at more, have a larger selection and are more selective when purchasing. 

Making sure a property is priced appropriately is another factor.  Asking too much and you won’t get the showings you need to sell the home, ask too little and you’ll leave money on the table.  I usually suggest 1-2% under market for a faster sell, closer to market average for average market times.

Let me know if you have any questions - or would like to see how I market and price properties.  I love this stuff!

Tags: How To by Spokane Home Guy (509) 990-7653
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I had the opportunity to speak with an entreprenur in the Spokane-Coeur d’Alene area regarding a unique business he runs nationally.  He runs Real Estate Auctions for homes that need to have a guaranteed sell - fast.

Their most current auction is in Idaho, over on Colfax street (Dalton Gardens) and opening bid starts at $50,000.  The bidding is expected to end at a competitive price point upwards of 300-400k  The home has previously been listed for much more.

Real Estate Auctions are a unique idea and buyers and sellers can (and should be) represented by a competant Agent to help determine bids (based on comps) and to facilitate the process.

For more information on Auctions in the Spokane & Coeur d’Alene area - please contact me!

Tags: Idaho Real Estate, Spokane Real Estate by Spokane Home Guy (509) 990-7653
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But it’s not all doom and gloom.  I was asked Monday by a Krem reporter (in response to one of my recent posts) whether I thought the weather had anything to do with the 42% slump in closed & pending sales for the month of January as compared to the same period last year.

My answer was No.  I didn’t think that was the only reason.  Some buyers were staying in, but many (at least ones I’m working with) have been out tredging through the snow and looking at properties.  While closed sales are down - the median and average prices are up almost 7%.  The cause - I don’t think there is just one.  There’s a smaller number of people who qualify for loans, the loan underwriting process is a tad tougher than it used to be (and it should be).  Lenders are now requiring you to do more than fog a mirror to get a loan.

 If you are thinking of buying a home in the next year -START NOW.  Check your credit.  Work with a Mortgage Professional and get a plan in place.  It’s too late to fix your credit when you’ve found the home of your dreams and pull a credit report that day.  Know what’s on your credit, know what you need to do to keep it, raise it or bring it where you need to be.  If you need any information - please contact me - I can point you in the right direction.

Tags: Spokane Real Estate by Spokane Home Guy (509) 990-7653
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In Canada - the problem isn’t selling the home - it’s being able to afford to buy one after you do. 

With soaring prices - some places as high as 45% appreciation in one year some Canadians are finding it hard to buy a home.  Experts estimate that this rapid appreciation trend will slow to a puny 4% this year easing the troubles on worried home buyers.

Interesting Article.

Tags: In The News by Spokane Home Guy (509) 990-7653
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In the beginning of the year I always look back on the market to see what the trends were for the previous year.  Partly because I’m curious, and secondly because it helps me advise my clients. 

I took a spread from June 1, 2007 through December 31, 2007 in the Post Falls area. 

The list price average was: $244,385
and the SOLD price average was $238,625

That means that on average sellers give up 2.5% in negotiations.   In neighboring Spokane the average sales price is $208,000 and concessions average 2-3%.

The average time on market for this timeframe was nearly 4 months at 115 days.

 What does this mean? 

For motivated sellers - pricing is important.  Pricing a home 2-3% below market will typically yield more showings and a quicker sale.  If you can provide value - your home will sell faster.  It’s a common fallacy that one needs to inflate the price in order to negotiate.  It’s always better to receive an offer and negotiate than to not receive any at all.  If you can afford to wait the market average of 115 days for an offer then you have some room on the price.

For Buyers - do your research.  Ask your agent (hopefully me!) to pull comps on the property before making an offer.  Know what other properties around the area are selling for and make your best offer.  Keep in mind that sellers on average are giving up 2.5% from the list price (which doesn’t include how many are paying closing costs etc.). 

 If anybody has any questions on the Post Falls - Coeur D’Alene Real Estate markets - give me a call or contact me.  I’ll be happy to send you any information you need!

Tags: Idaho Real Estate by Spokane Home Guy (509) 990-7653
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Georgia’s recent water crisis has hit a new low.  Some lawmakers have proposed annexing a small part of Tennessee to include the Nickajack Resevoir to quench Georgia’s growing thirst. 

If you didn’t see it, last summer Georgia sucked their water supplies nearly dry and have been fighting with Tennessee and Florida over water rights for some time.

Interesting Article.

Tags: In The News by Spokane Home Guy (509) 990-7653
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According to this latest CNN Money Article - the rates are low but that doesn’t mean everybody’s a shoe-in for a refi.  One mortgage lender claimed he’s turning away 60-75% of applicants because they cannot qualify.

Underwriters are being more strict on lending requirements because banks are having a tougher time selling the mortgages (or validating that the mortgage is a good investment) for the secondary markets. 

 Read more.

Tags: New Ideas by Spokane Home Guy (509) 990-7653
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I’ve been watching the multi-units in the Spokane–Coeur D’Alene area for almost a year now and have been tracking the ups and downs of the rents, interest rates and estimated nets after mortgage, insurance and taxes.

I’ve found it surprising that there are actually quite a few properties that when only considering rents vs. debt service - there is often $100-$300 positive on many of them.  Some of them with Cap Rates (capital return rate - i.e. how much of your investment is returned each year) of 9% and Cash on Cash (your rate of return on the cash invested) of 5-20% depending on the terms.

I keep up this spreadsheet on a weekly-biweekly basis depending on how many properties are available - if you’d like to receive a copy - please contact me.

Tags: Idaho Real Estate, Spokane Real Estate by Spokane Home Guy (509) 990-7653
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I probably get this question two to three times a day - “Is business slow with all this snow?” and my answer is always a confident - “No.”

Spokane still has a lot of buyers and they have a TON of inventory to look at.  My Sunday open houses have been very successful - much more so than they were in the heat of last summer.  I’m finding many people out driving in the snow, tredging through the piles on the sides of the road and previewing homes despite the weather.

Spokane’s market hasn’t missed a beat - we’re still selling.  People are out looking and that’s good. 

One change I have noticed in this current market is that buyers are being more discriminating.  They don’t just leap on one of the first 5 homes they view - I’m averaging 10-30 homes for most buyers before they make a decision.  I don’t mind the work and am ultimately happy we did the extra work to find something that really worked.  A practice I’d like to see continue into the tighter, more competitive buying markets in the future.

Tags: Spokane Real Estate by Spokane Home Guy (509) 990-7653
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