My brother and I have been working on a web app that creates single property websites to better market our listings. It’s still under construction, but if you’ve got some time to kill check it out and let us know what you think.
Archive for the ‘Real Estate’ category
Single Property Websites
March 23rd, 2009Homeowner Affordability and Stability Plan – Part II
March 4th, 2009
The Treasury Department released their details today regarding the Homeowner Affordability and Stability Plan. There are a few different versions of the plan depending on the borrower’s situation. The abbreviated version is that you need to call your lender to find out about your own personal eligibility. However, here are some of the basic eligibility requirements (taken directly from the Treasury Department’s summary):
- Loans originated on or before January 1, 2009.
- First-lien loans on owner-occupied properties with unpaid principal balance up to $729,750. Higher limits allowed for owner-occupied properties with 2-4 units.
- All borrowers must fully document income, including signed IRS 4506-T, two most recent pay stubs, and most recent tax return, and must sign an affidavit of financial hardship.
- Property owner occupancy status will be verified through borrower credit report and other documentation; no investor-owned, vacant, or condemned properties.
- Incentives to lenders and servicers to modify at risk borrowers who have not yet missed payments when the servicer determines that the borrower is at imminent risk of default.
- Modifications can start from now until December 31, 2012; loans can be modified only once under the program.
To find out if you qualify, you’ll have to call your lender and supply them with your income, debt and asset information. For more information about the plan itself, check out the following links from the Treasury Department:
Photo Credit: woodleywonderworks via Flickr
Homeowner Affordability and Stability Plan – Part I
February 27th, 2009
“The plan will help up to 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure.”
Don’t have enough equity to refinance or are you completely upside down in your home loan? Or has your income changed, keeping you from qualifying for your current loan? The government is here to help. At least, that’s the idea.
The new Homeowner Affordability and Stability Plan will help homeowners that don’t currently qualify for standard refinancing options. This includes people who have less than 20% equity in their home or owe more than their home is worth. There isn’t much information out about the program yet, but they are planning on releasing more details on March 4th. For now check out these links or give me a call at 208-631-3545.
Idaho Power Rate Increase
February 16th, 2009
Did you know that the rate structure for your electricity usage recently changed? Idaho Power announced last week that their residential rates increased an average of 1.61%. However, the bigger news is that rates are now tiered and priced by usage. If you use less than 800 kWh (kilowatt hours) your rates stay at a low 5.58 cents per kWh September through May and 5.78 cents per kWh during the summer months. However, if you use more than 800 kWh but less than 2,000 kWh they raise to 6.2 cents and 6.59 cents respectively. If you can hang meat in you home in the summer and bake a cake in there during the winter and use over 2,000 kWh you rates will be much higher – 7.13 cents and 8.17 cents per kWh.
This new structure may help reduce a lot of people’s energy use. If you are close to one of the tiers, say around 850 kWh, you may start figuring out how to reduce the amount of energy you use in order to take advantage of the lower rates.
Curious about how to lower your energy usage? Check out the tips below or contact us – we’re EcoBrokers, remember?
- Set your thermostat down one degree and save two to three percent on your heating or cooling bill, depending on the season.
- Turn off lights not in use.
- Participate in an Idaho Power energy efficiency program.
- Wash full loads of laundry and dishes, and use water and energy-saving settings.
- Use plug strips for computers and video equipment and shut off when not in use.
- Buy compact fluorescent light (CFL) bulbs for light fixtures you use more than two hours a day. They use 75 percent less energy!
- Weather-strip windows and doors.
- Regularly clean or replace the air filter in your furnace.
$7,500 Tax Credit Could Become $15,000
February 7th, 2009
Some of you may have heard about the $7,500 Tax Credit that is being offered to first-time homebuyers. If you haven’t, I’ll give you a quick rundown: First-time homebuyers, defined as those people that haven’t owned or bought a home in the last three years, can qualify if they closed on a home between April 8, 2008 and June 30, 2009. Currently, the credit has to be paid back over fifteen years (starting two years after you file), so it is more like a zero interest loan, but congress is trying to make it a true credit without a payback and they are trying to increase the tax credit to $15,000.
The $15,000 tax credit is not yet a law, but it has passed through the Senate and will most likely be signed off in Obama’s Stimulus Package. The major updates will include not having to pay back the credit as well as opening it up to anyone buying any home, not just first-time homebuyers. The time frame of the $15,000 credit will piggyback the current tax credit and may possibly be extended to the end of the year. So those of you that have already purchased a home may be able to amend your taxes and get your tax credit. Of course, everyone’s tax situation is different so don’t do your taxes based on this blog. Instead, talk to an accountant.
I’m following this closely and will keep you updated via this blog, but if you have any questions, please give me a call.
Top 5 Real Estate Myths
January 30th, 2009Visit msnbc.com for Breaking News, World News, and News about the Economy
In case you don’t want to take the 4 minutes to watch the video, I will list the myths for you here:
- Sellers today are desperate – Very few sellers are in a desperate situation. Don’t look at the days on market as an indicator of a good deal, instead focus on why the owner is selling.
- Don’t buy before prices have bottomed – This is a classic mistake because the bottom won’t show itself until prices are on their way up.
- You can’t buy a home with less than 20% down – FHA is still offering first-time home buyers financing with 3.5% down. Obviously, you still have to qualify, but the program does exist.
- Now is the absolute worst time to sell – Although it is not a good time to sell, many markets are recovering. Our own market here in Boise and the surrounding areas has been seeing much more activity in the past month compared to the last two quarters.
- Before you refinance, shop around – I’m not sure I agree with this one, but the advice is true that your current lender will fight hard to keep your business so it may not be worth your time to shop around.
There you have it. Now go search for a home or sell yours.
Hitler vs. The Housing Market
November 24th, 2008Good News for the Boise Home Market?
November 21st, 2008
The Idaho Business Review had an uplifting article yesterday. They reported on the Idaho Housing and Finance Association executive director Gerald Hunter’s talk at the 2008 Economic Outlook Forum here in Boise. Overall, Hunter believes that if we look at the long term picture of our housing market, we are still in good shape. Comparing recent sales statistics with those over the past 10 years, we are still among the national average for valuation increase. Yes, increase. Over the last ten years we have still averaged a 5%+ annual increase in home prices. If we forget about those two fluke years (05/06), we’re doing great. Say you bought before the boom, left the country for two years and came back, the market would seem just as normal as ever.
The unfortunate part is that many people bought during those two years so none of this 10 year average nonsense matters to them. Well, the good news is that worst may be over. According to Hunter:
“If you use that benchmark [referring to the annual growth increase], you may have to conclude that Boise has made its way through the housing bubble.”
This is not to say that we’ve reached “the bottom,” but it is a good sign that we are close. Close enough, in fact, that any attempts at timing “the bottom” may be fruitless. Over the next year as we approach the bottom (right now), reach the bottom (soon), and start to see price increases again, it may all blur together. There won’t be a specific day that we can call the last day prices dropped. And again, we won’t be sure we’ve hit the bottom until it has passed.
Remember, many of the issues we are facing today were caused by people planning to sell shortly after purchasing their home (history tells us you need to wait 4 years to break even on a home) or people trying to use their future equity today. A home purchase is a long-term commitment and if you’ve considered and accepted this fact, you’re probably ready to buy. And right now, your timing couldn’t be better.
Photo Credit: Christine ™ via Flickr
The Oracle of Boise
October 22nd, 2008
I’ve been looking for a way to explain to my buyers that now is a great time to buy (I know – does a real estate agent ever stop saying this?), but I’ve held back for a few reasons. First, I don’t actually know what is going to happen to the economy in the next month, year or decade. And second, I didn’t live through the Great Depression and I wasn’t really paying much attention during the past few recessions. Basically, my prediction skills are lacking. So, as with anything else that I don’t know much about, I’ve done some research.
As I was reading through the real estate blogs that I read everyday (see column on the right), I came across Greg from BlueRoof.com’s blog entry about Warren Buffett’s opinion article in The New York Times. Basically, Buffett tells us what we all know – buy low, sell high. But he puts it in a way that makes it easier to understand during these times of confusion. He also talks about the stock market specifically, but his advice can be useful in real estate as well. From the article:
“What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.”
What is the lesson here? Right now, prices are low (hint: that is when you buy).
Photo Credit: woodleywonderworks via Flickr
This American Bailout
October 15th, 2008
For weeks we have all sat around listening to talk of a 700 billion dollar “Wall Street Bailout.” Why Wall Street and why $700 billion, we all asked. Nobody seemed to know. The plan wasn’t passed…then it was…but it was different…the Dow is down 777 points…up almost 1000 points within a few days. What is going on?
I didn’t know either. In fact, I was very much against the bailout plan when I first heard about it and somewhat relieved when it didn’t pass the first time. Then the second version passed and I didn’t know what to think. None of the news sites or other trusted resources had any answers. Then Ira Glass came in and explained everything.
Remember my blog post about the mortgage crisis? Well, the “This American Life” radio show has done another episode in which they explain the bailout plan – what it is, why we need it, and how we got in to this mess in the first place. You can listen to the show here.
It is about an hour long show and it is definitely worth listening to.
