With the messy housing market out there one of the common questions asked by homeowners and people searching for their new home is whom can I trust? It's difficult to read through all the negative stories that the media reports and the various positive spins that professionals put forth. We feel a quick summary and recap of our market here in the Treasure Valley will help shed some light on the current market. Also reviewing a few items regarding the issue of trust will help you make informed decisions
Treasure Valley Market Summary
Inventory: As of today there are 4398 homes for sale between $150,000 and $300,000 in Boise, Meridian, Nampa, Caldwell, Kuna, Star and Eagle. This relates to nearly 8 months of existing inventory. For homes priced above $300,000 there is approximately 13 months of inventory. What this means is that our market remains very strong for buyers looking for homes in practically all price ranges. A noticeable issue that we've brought up many times is that a large percentage of homeowners are not acknowledging the change in the market and adjusting their asking prices either too slowly or too late leading in many cases into their need for a short sale.
Short Sales: Shorts sales are on the rise. A short sale occurs whenever the lender agrees to accept less than what is owed on the property. Many times a home facing a short sale isn't listed this way in the public comments. Often we have advised clients to be careful for the home was subject to a short sale. While this could be a bargain often the frustration in waiting for weeks or even months for the bank to return a final decision negates the potential savings for the buyer. Short sales aren't always the deal they seem. Why you ask? Often the homeowner owes more on the property than what other homes in the neighborhood are selling for which means the savings are eliminated. Thinking that a short sale is a guaranteed way to pick up a real bargain is not always the case. Before making any offers find out if the home is subject to a short sale, check into other listings, run comparables and by all means call an agent you trust.
Foreclosures: Foreclosures are also on the rise. A foreclosed property occurs when a consumer defaults on the loan that they've taken and the bank repossess their house. Foreclosed homes often end up for auction at the county courthouse steps or one of our local title companies. Many people think they can show up and purchase the home for pennies on the dollar. The truth is that many times the bank has entered a blind bid buying the house back themselves. Remember cash or a cashier's check is needed to purchase these properties and finding amazing deals aren't plentiful during this process. When the bank purchases the property it becomes a REO (Real Estate Owned).
HUD, VA & REO Properties: There's a rise in these type of homes. HUD and VA are government owned homes. The government guaranteed the home and stepped into payoff the home from the mortgagor that defaulted making them the current owner. On a HUD home generally speaking you will get a decent deal. The house may not be in great condition but the price is what is needed to recoup costs. You can find HUD and VA homes at http://www.hud.gov To make a bid on one of these homes contact your local agent. REO homes are usually contracted with agents in our area who list the homes on the MLS (Multiple Listing Service).
Overpriced Homes: In cases where current homeowners owe to much on their home it maybe headed for the short sale, foreclosure or government owned process described above. Refinancing could be an option or simply discussing a new plan with the current lender may help. In many cases though the owner would like to get X for their home but X is based on 2005's higher prices and not the current value. For example in one neighborhood we follow closely the highest priced home sold in the past year was $450,000 yet there are many homes priced $490,000 and higher with similar square footage. Months have passed and whenever a new home goes on the market under $450,000 it usually sells rather quickly. The other homeowners will need to adjust or remove their home from the market. Ask your agent to see the comparables before making any offer.
Building Trust
Trust must be earned. There are a few things to look for when talking with people from mortgage lenders to agents and any real estate vendors you encounter. Ask questions and ask them in multiple ways. Many agents feel they are in charge but guess what they are not. We are human beings just like you, licensed to perform a service of meeting your needs and your best interests. The agent's best interests should come last! Do not feel in re-wording your questions that you are tricking the agent. What you are doing is finding out what the agent's true motivation is and once that is established then you will know if you can trust that person. This same principle applies to anyone you are looking to worth with in the future.
Actions speak louder than words. Look to see if the person you contact follows through with their statements. A little slack needs to be granted for such items that may cause a delay in response such as family or previous appointments. Often agents or vendors may take a day or two instead of an hour in getting back to you but they still followed through. Managing expectations on both sides is key in establishing a working relationship.
Many people look for agents with the most knowledge. However, it's not just about knowledge. It's about having the wisdom to know how to impart that knowledge to benefit the clients. Have you ever met someone with a high IQ who although they where smart they had no common sense and handled themselves and situations really poorly? We all have and that's why when looking for an agent it's not just about book smarts but it's about the heart and drive to get things done right for you.
If you want to know more about us as agents feel free to email or call us with any questions. Looking for help at all just let s know. We truly are here to help our clients with all their real estate needs.
