The Spokane-Coeur D’Alene Home Guy Blog

For first time home buyers, the government just sweetened the pot.

The message: get out there and buy a house.  The Reward: up to $7,500 in tax credits.

This works similar to other tax credits, it’s not free cash but it’s interest free cash for up to 15 years.  A qualified first time home buyer need only purchase an owner occupied residence (this can even be new construction). To qualify for the credit.  A first time home buyer is one who has not purchased or sold a primary residence in any of the last 3 years.  If you are married to someone who has, sorry, unfortunately you don’t qualify.

If you do, your accountant can apply for the credit which caps out at $7,500 on your taxes.  This credit is refundable, so even if you owe nothing to the IRS you can get a check back.

The money can be paid back over 15 years with payments as low as $500 / year (presumably paid in your annual taxes).  When you sell your house, you can pay back the “credit” with your equity (assuming you have equity to pay it back).

Interested?  Let’s talk.

Tags: Idaho Real Estate, Spokane Real Estate by Spokane Home Guy (509) 990-7653
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Transactions remained steady in July, the only increase was Coeur d’Alene with an increase of 3 transactions to 79 for the month.  Post Falls dropped 6 to 45, and Spokane dropped 18 to 732 (which represents the most steady month-to-month numbers for Spokane this year).

The average sale price went up in all three markets.  Coeur d’Alene jumped over $15,000 to an average of $259,511.16, Post Falls jumped just under $21,000 to $214,720.29, and Spokane with the smallest increase in average sales price changed to $222,803.16 from $219,829.47.

 The list to sold ratio (the ratio between what a seller lists their house and what the home ultimately sells for dropped in all three markets.  Coeur d’Alene dropped to 96.66% of asking price, Post Falls to 98.07% of asking price and Spokane to 97.87% of asking price.

 Interested in seeing more?  Click here for the full report.

Tags: Idaho Real Estate, Spokane Real Estate by Spokane Home Guy (509) 990-7653
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Comparison of 3 markets.  Post Falls, Coeur d’Alene and Spokane.

I think you’ll be interested in what you see.

Download Report.

For other Idaho Cities - shoot me a note.

Tags: Idaho Real Estate, Spokane Real Estate by Spokane Home Guy (509) 990-7653
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According to a recent report I ran on FlexMLS the Post Falls Residential (stick built) market appears to be on the rise.  Inventory is declining (11% down from last year) which will help prices remain firm, and the average days on market for a listing is down 32% from 2007.

 There have been some definate adjustments to the market - the most apparent being the 10% drop in the average sale price across Post Falls.  This could be in large part because of increased motivation from sellers, bank & foreclosure sales sellers using price to be competitive in a marketplace that is moving slowly and with lots of competition.

Either way, slowing inventory and faster turnover is a great sign for Post Falls Real Estate!

Tags: Idaho Real Estate by Spokane Home Guy (509) 990-7653
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With the tightening grip of lending institutions and stricter requirements to get a loan, many home buyers are turning to alternatives.  One of these alternatives is a Lease with Option to purchase. 

 I’ve seen many different ways sellers structure their Lease Options, some say put something in writing and we’ll go from there, others want a very large, non-refundable option price, and a rather high monthly payment, and some want you to enroll in credit repair programs to ensure you’ll be able to excersize your option during the period.

What is a Lease Option?  A lease option is an interest in Real Property that gives you the right to purchase the property at a pre-determined & pre-negotiated price anytime within a negotiated period of time.  The option typically costs money to purchase and is usually preferred second to a conventional method of finiancing (loan).  Options can be protected by recordation at the courthouse for a minimal fee.

Options can be setup as Purchase and Sale agreements with early posession / delayed closing, or elaborate documents prepared by competant attorneys.  Either way there is a lot to consider.

Most options have:

1) Option Price - can be several thousand or tens of thousands, depending on the terms the seller is willing to accept.
2) Monthly payment
3) Timeframe

A lease option is still a lease, so you are still a tenant while you are in the home so don’t be surprised if the seller does not want you to make improvements or do anything that a typical landlord wouldn’t let you do.  I suggest having the option managed by an escrow company (from a buyers perspective) to ensure that the seller is paying the mortgage, taxes and other items required by the property owner (property taxes can be negotiated either way in an option). 

If you are tight on credit or are considering a Lease Option - I’d be glad to assist and help in any way possible.  Please give me a shout.

Tags: Idaho Real Estate, Spokane Real Estate 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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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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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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Yesterday I treked out into the snow to preview several homes in Post Falls for some clients.  Although close the Idaho market seems a bit different than the Spokane Market, or at least their prices seem more realistic. 

I noted some newer development homes - like the ones in Treaty Rock seemed to have great prices as compared to newer construction in the Spokane-Liberty Lake areas.  A nice 3 bed 2 bath 3 level home was selling for the 170k range.  It wasn’t updated to the max, but it wasn’t old and dingy either.  A great value.  Someone could come in, replace the carpet and shoot some paint and have a very nice place.

I also checked out some new construction by Greenstone - brand new houses in the 189k range, also great values.  Single floor living - all appliances were included (at least in this home) and the finishes seemed to be of good quality.  I was also impressed with the lot sizes as well. 

I’m quite impressed with the Real Estate Market in Post Falls and Idaho - I am licensed over there and very familiar with the areas, but when directly comparing the two there are some nice surprises.

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