Giving Thanks and Giving Back This Holiday Season

Giving Thanks & Giving Back This Holiday Season

With the holidays just around the corner we become more aware of all we have to be thankful for. Many people find the best way to celebrate the holiday season is to give to those who are less fortunate. This month I have put together a list of some ways we can do just that. You’ll find fun ways to give; from giving expired coupons to donating used vehicles, working with local charities to those across the globe. I hope that you’ll find something inspiring as you celebrate the holiday season. Click on the links below to visit each of the following charities.

Help Our Military Overseas: Send Your Expired Coupons
Military members & their families can use expired coupons for up to 6 months past their expiration! This program provides a way for us to put our expired coupons to use & help out our military families. http://thekrazycouponlady.com/?s=military+coupons

Craft Hope: Spread Seeds of Hope One Stitch at a Time
Craft Hope is designed to share handmade crafts with those who need them. If you are crafty they have projects for you that help make a difference around the world. http://crafthope.com/

Union Gospel Mission: Help Spokane’s Homeless
Providing Spokane’s homeless with, shelters, outreach programs, automotive job training, & recovery programs. We can help by donating food & other items, volunteering our time, or even donating a used vehicle for the automotive job training program. http://www.ugmspokane.org/

Amazima: Feed, Educate, Provide School Supplies, & Medical Care
A 21 year-old American women living in Uganda, Africa operates a sponsorship program for 400 orphaned children. These children are provided an education, school supplies, three meals per day, & medical care. http://amazima.org/

Big Brothers Big Sisters of The Inland Northwest: Help Local At-risk Children
Become a big brother or sister, become a committee member or a day-of-event volunteer for a fundraising event, or help spread the word in the community. http://www.northwestbigs.org/

If you need help getting involved let me know, I'm happy to help!

Historic Low Interest Rates, Why you Should Care

Lately there has been a lot of news buzz about the incredibly low interest rates we are seeing in today’s market and the increased buying power that gives consumers. But did you know that not only are current mortgage rates low for today but that we have not seen rates this low in a long time? Like a really long time? Maybe since your grandparent’s parents purchased their first home? The last time rates where this low was back in the 1950’s! To give you an idea what rates have looked like historically I’ve included some graphs (from mortgage-X.com) to help put things in perspective.

(Click to enlarge)


But what does this all mean to the average consumer? Well one thing it means is that you have greatly increased buying potential! To give you a rough idea, if you where purchasing a $200,000 home right now on a 30 year fixed rate mortgage even a 1% increase in your interest rate would change your payment by about $125 per month. And maybe even more surprising it would increase your total payments over 30 years by about $44,300!

(Check out my blog post for more information)

So, if you or someone you know someone that has been purchasing a home you may want to consider purchasing soon. Who knows how long these incredible rates will last!

Why Does the Seller Care About the Buyer's Down Payment?

To sum it up the seller cares because there is a perception that if you are making a larger down payment you are more likely to have the financial wherewithal to weather contingency costs that could come up during the purchase process. Things related to the purchase and personal expenses like an expensive car repair or medical expense.

Another consideration is that some uneducated buyers may make an offer on a property not realizing the lending requirements for their type of purchase. For example, I was recently working with a seller who received an offer from a newbie investor on their townhouse. The buyer planned to put 5% down, not knowing the minimum down payment requirement for this investment would be 20%. Since we requested the information we where able to avoid entering into escrow only to find out the buyer could not perform on the contract, eating up valuable market time.

Another case-in-point I recently received an offer on one of my listings where the buyers-agent thought the home fell in an area where zero down financing was available through our state. The contract read that they where putting zero down. Since I knew the property was outside of the area that qualified for the zero down financing we again were able to avoid entering into escrow.

Both of the examples above happened within about 2 weeks of each other. So although it is rare, since most buyer agents and buyers do their homework, it still is important to know.

As you can see, it is only fair for a seller to request information concerning a buyer's down payment amount. Transactions are a two-way street, both parties should be informed about the details of the deal.

If you have further questions about this topic, shoot me a call, email, or post.

Exterior Upgrades

This is a great article about how exterior improvements can add value to your property. It is from houselogic.com.

A beautiful yard is a head-turner, no doubt about it. The good news is that even if you can’t tell a tulip from a turnip at the garden center, you can still create eye-catching curb appeal by paying attention to the basics of good landscaping. Ignoring your yard—or doing something that’s out of character with the neighborhood—can jeopardize the assessed value of your home.

“We have several categories for design and appeal,“ says Frank Lucco, a real estate agent and professional appraiser in Houston. “That’s where we make those adjustments. Poorly maintained landscaping can be as much as a 5 or 10% deduction.”


Appraisers are quick to praise the allure of a well-tended lawn and good-looking landscaping when it comes time to sell your home, but most do not assign any specific increase in monetary value for upkeep.

“Landscaping is going to add to the appeal of the property and it may sell quicker, but it’s hard to determine value,” says John Bredemeyer, president of Omaha-based Realcorp. “You have to have a number to compensate someone if you drove into their tree and killed it, but is it really market value? Probably not.”

Nevertheless, most professionals agree that curb appeal and a well-maintained appearance prevent your property from losing value. Here are the top suggestions from real estate agents, appraisers, and landscape designers for boosting the curb appeal of your yard:

Green up the grass
If your house has a front yard, make sure it‘s neat and green. You don’t want bare spots, sprawling weeds, or an untrimmed appearance.

“It’s so simple to go to Home Depot, buy fertilizer, apply it every six weeks, and water it,” says Mitch Kalamian, a landscape designer in Huntinginton Beach, Calif. “It will green up.”

If the yard looks really scruffy, you may decide to invest in some sod. According to the National Gardening Association, the average cost of sod is 15 to 35 cents per sq. ft. If you hire a landscaper to sod your yard for you, labor will add 30% to 50% to the total cost of the project.

Another alternative is to plant low-maintenance turf grasses. Turf grasses are durable and drought-resistant. Expect to pay $18 to $30 for enough turf grass seed to plant 1,000 sq. ft. of lawn area.

Add colorful planting beds
Flower beds add color and help enliven otherwise plain areas, such as along driveways and the edges of walkways. In general, annual flowers are a bit cheaper but must be replaced every year. Perennials cost a bit more but come back annually and usually get larger or spread with each growing season.

If you’re not sure what to plant, inquire at your local garden center. Often, they’ll have a display of bedding plants chosen for their adaptability to your area. Also, they‘ll be inexpensive because they’re in season, says Peter Mezitt, president of Weston Nurseries in Hopkinton, Mass. Try pansies in the summer, and asters and mums in the fall to add vibrant color. “That’s what we do around the entrance to our garden center,” Mezitt says.

Valerie Torelli, a California REALTOR® who dresses up her clients’ yards to sell their houses faster and for more money, says that in her market, she can put in a bed of colorful annuals and bark, as well as cutting down overgrown shrubs, for less than $500. “We can buy gorgeous plants for $3.99 to $15.99,” she says.

Add landscape lighting
For homeowners who have made a sizeable investment in landscaping, it makes sense to think about adding another 10% to 15% to the bill for professional lighting. “You can’t see landscaping after dark,“ says Brandon Stephens, vice president of marketing for a landscape lighting firm in Lubbock, Texas, “and buyers are not always looking at houses on a Saturday afternoon.”

The cost of a system runs from $200 for a DIY installation to more than $4,000 for a professional job. If you‘re doing it on your own, the key is to light what you want people to see, such as mature trees and flowering shrubs.

Plant a tree
The value of mature trees is particularly difficult to determine. Lucco says that in his market, mature trees contribute as much as 10% of a $100,000 property’s overall value. In addition, a properly placed shade tree can shave as much as $32 a year on your energy bills. Expect to pay $50 to $100 for a young, 6- to 7-foot deciduous tree.

You can make your own initial assessment of the value of your property’s trees by visiting the National Tree Benefit Calculator. For example, a mature Southern red oak tree with a diameter of 36 inches in the front yard of a house in Augusta, Ga., would add $70 to the property value this year, according to the calculator.

Georgia-based freelance writer Pat Curry writes extensively about housing and real estate for consumer and trade publications. While a fair hand at remodeling, she is hopeless as a gardener. As a result, her landscaping is made up of plants that thrive on neglect.

The End of the Real Estate Market as We Know It?

Some of you out there have been following my blog and other real estate related news sources and have been hearing about opinions about how the expiration of the home buyer tax credit may affect the real estate market. In a recent article by Prudential Real Estate and Relocation Services, Inc they explain that most home buyers will not be deterred by the end of the tax credit. Here is the full article:

Households Unfazed by Expiring Tax Credits

The expiration of the home buyer tax credits won’t deter optimistic households who believe the market is improving, according to a survey released Wednesday by Prudential Real Estate and Relocation Services.

More than 90 percent of those surveyed believe the home buyer tax credits have helped both first-time buyers and the overall housing market, but 65 percent say that end of tax credits won’t reduce their personal interest in buying a home.

Over the next five years, 79 percent expect real estate prices to increase, and 20 percent expect prices to rise substantially. Only 12 percent believe prices will decrease.Among renters, 75 percent believe owning a home is a better long-term choice for them than renting.

The majority of consumers also believe that homeownership is a good investment, with 75 percent saying it is better than stocks or bonds, 72 percent preferring it to mutual funds, and 74 percent saying it surpasses savings accounts.

Source: Prudential Real Estate and Relocation Services, Inc. (04/28/2010)

If you have questions about the real estate market or any real estate related questions just let me know, I'm here to help.

Who Really is the Top Real Estate Office In Town

As I drive around town I see signs saying things like, "#1 Real Estate Office In Town" and "Top Broker". How can this broker be #1 if the other guy down the street says his office is #1 and yet another guy around the corner says he is #1. It reminds me of a Ford Trucks commercial I recently saw where they tease that they have the "straighest antanna".

I recently ran some numbers to see who REALLY is the #1 broker in town based on the number of homes sold and based on sales volume (total dollars sold) over the last quarter.

So, now that the cards are on the table it seems pretty strange to see a sign from a company claiming to be #1 that does about half the business doesn't it? Now you know who the top real estate office in town is.

If you'd ever like up-to-date information like this please let me know, I'm always here to help!

Spokane Real Estate Rocks!

Spokane real estate appears to be on the rebound. According to a report by CNN Money Spokane is slated for a 2.8% increase in value this year! It may not seem like much but considering that some areas, including Hanford California, Miami Florida, and Ft. Lauderdale Florida are expecting to see drops of over 20% this year I'll take the almost 3% gain!

What rocks even more is that not only do they report a gain but they place us, Spokane, as 14th in the nation for estimated appreciation in the market this year!

If you want to rock your financial world this year you better hurry and jump on board! If you have been putting off buying a home OR upgrading this is your chance to get in at absolutely the lowest price and watch your equity grow!

Plus don't forget, there is still time (not much time thought) to take advantage of the Move-Up tax credit, the First-Time-Buyer tax credit, and super duper low interest rates.

The Mystery of the FSBO Illusion Revealed

As an agent it seems as though I hear about a couple or individual that is planning to sell their home FSBO almost every day. Generally the reasoning is that, "Hey, it's not rocket science and I'd sure love to save myself the fee." which does make some amount of sense on the surface. But are you really saving any money?

In the same way that a FSBO owner is trying to save money, so too is the buyer. Any savvy buyer knows that a FSBO is not paying a fee to a broker, so why would they pay a price that is comparable to that of a home that has broker representation (which is what the FSBO used to arrive at their price)? You're right, they wouldn't.

So for example if a FSBO is priced at $200,000 and is priced comparatively to other homes listed with brokers with a 6% real estate fee built in, the FSBO Illusion would tell you that you'd save $12,000 in fees. But again the buyer knows this and they want a piece of the action right? I sure would! So if there is no representation on either side therein lies the FSBO Illusion; there are no savings!

Ultimately the savvy buyer and the FSBO seller negotiate a price of $188,000 since the price is not inflated to cover the cost of professional help.

The FSBO simply sells their home for less and in the process does a whole lot of work marketing, opening the door to strangers, potentially opening themselves up to significant legal issues, and countless hours of paperwork to save $0.00 dollars. Oh yeah, did I mention that statistics show that on average a Realtor nets the seller 16% more for their home? Pretty simple math, huh?

The FSBO Illusion... Don't be fooled.

Watch Out for the Pirates!

Free stuff is great but as most of us have learned at one time or another usually if something is "free" there are some strings attached. According to a report by the Seattle Times

http://seattletimes.nwsource.com/html/businesstechnology/2011300727_pfcreditreport14.html

the same is true of the free credit report commercials we have all seen. They say that, "Free isn't free with this guy [the pirate] unless you buy something..."

However, for those of you who have been confused by these somewhat misleading commercials and advertisements good news is on the horizon. Soon all of these ads will be forced to have proper disclosure on the details of getting your "free" report. Things like, "you must buy this service before you'll receive your free report" etc.

But be aware that that is not coming up until September 1st according to the report so in the mean-time be cautious of the pirates (and others) that may try to steal your booty!

The News

We all know that the economy and in turn the housing market has been seeing some tough times. You should know that the situation has been and continues to improve. Bad news media and reports often give an unbalanced opinion about what is really going on. They seem to exaggerate the problems and focus on all of the negative aspects about what is going on in the real estate industry. Good news such as nationally rising home sales, improved affordability, super low interest rates, and incredible tax incentive for homeowners are frequently overlooked, or are buried deep in the news or reports.

So don't let the news get you down. Get the facts so you can make your own, educated judgments!

10 Stupid Mistakes that Buyers Make

Mistake Number 1

Not choosing an agent who is committed to forming a strong business relationship with you.

HOW TO AVOID IT
Making a connection with the right real estate agent is crucial. Choose a professional who is dedicated to serving your needs- before, during and after the sale.



Mistake Number 2

Making an offer on a home without being pre-qualified.

HOW TO AVOID IT
Pre-qualification will make your life easier. Take the time to talk with a bank or mortgage representative. Preferably one that your agent referred to you. They will ask you specific questions with regard to your income, debt and other factors that will help you determine the price range that you can afford. It is one of the most important steps on the path to home ownership. Not to mention that many agents and sellers will require that you handle your financing up front.



Mistake Number 3

Not knowing the total costs involved.

HOW TO AVOID IT
Early in the buying process your mortgage representative should give you an estimate of your closing costs. If they don't, be sure to ask for one.



Mistake Number 4

Limiting your search to open houses, ads or the internet.

HOW TO AVOID IT
Many homes listed in magazines or on the internet have already been sold. Your best course of action is to contact your agent. They have up-to-date information that is unavailable to the general public, and they are the best resource to help you find the home you want.



Mistake Number 5

Thinking there is only one perfect house out there.

HOW TO AVOID IT
Buying a home is a process of elimination, not selection. New properties arrive on the market every day, so be open to all possibilities.



Mistake Number 6

Not considering long-term needs.

HOW TO AVOID IT
It is important to think ahead. Will your home suit your needs 3-5 years from now? How about 5-10 years?



Mistake Number 7

Not following through on due diligence.

HOW TO AVOID IT
Make a list of any concerns you have relating to issues such as crime rates, schools, power lines, neighbors, environmental conditions, etc. Then, attempt to find the answers and be sure that you're comfortable with the answers (or lack thereof).



Mistake Number 8

Not having a home inspection.

HOW TO AVOID IT
Trying to save money or time today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers will never even notice.



Mistake Number 9

Not examining insurance issues.

HOW TO AVOID IT
Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.



Mistake Number 10

Not purchasing a home protection plan.

HOW TO AVOID IT
This is essentially a mini insurance policy that usually lasts one year from the date of the sale. It usually covers basic repairs you may encounter and can be purchased for a nominal fee. Talk to you agent to help you find a plan that fits your needs.

Spokane's Most Expensive Listing

Have you ever wondered what the most expensive listing in Spokane looks like? Look no further.

This beautiful estate is located on Spokane's South Hill. The listing reads:

"Turn of the century rare masterpiece home designed by Kirtland Cutter. Impeccably maintained and updated in keeping with the original character. Magnificent English Gardens, city views, garage carriage house with full apartment. Original Ballroom, Fabulous family room with bowling alley and wine room. Price includes all designer furniture."

This home is listed with 7 bedrooms, 8 baths and over 20,000 square feet. If you'd like to see more photos check it out on my website at: http://josiahboone.mywindermere.com/lid33855584

You can have all of this for a price tag of only $3,250,000!

How Does a Rise in Interest Rates Impact Your Buying Power?

If you didn't already care about buying while rates are low, you probably will after reading this.

It is pretty amazing how much more you can buy for your money when rates are so low. If you qualify for a $200,000 dollar home at 5% you may want to jump on it. Later, if rates go up even a little to say 6% you will only qualify for a $179,000 purchase. That's a $21,000 difference!

Now imagine you stay in the house for 10 years and let's say the home appreciates at 5.4% per year which is the historical average. Your $200,000 home would now be worth about $338,404. Your $179,000 house would be worth about $302,871. If you want to get technical you can reduce the difference of the initial $21,000 and that still leaves you ahead by nearly $15,000 or about $1,500 per year. Not to mention you go to live in a considerably nicer home during that 10 years.

Plus, if you buy now, you may qualify for the $8,000 first-time buyer tax credit or the $6,500 home buyer tax credit.

Think about it...

10 Mistakes that Sellers Make

I love my job, I get to go out and look at homes almost every day. But it has always struck me as odd that nearly every time I do I find something on the outside or inside of the home that dramatically reduces my opinion of the value of the home.

Now, I'm pretty objective and after doing this for years I know I have become somewhat immune to the pet odor, nic-nacks, dirty carpets, and other things that ruin the impression and value of a home. But what about the buyer that I'm showing the home too?

I know from personal experience that anything I see, smell or otherwise notice my buyer is noticing 10 fold. After all, this could be the house they ultimately end up living in, raising their family in, retiring in.....you get the point.

In this video you'll see 10 common mistakes that sellers make and why you should avoid them. If you won't do it for yourself, and ultimately your bottom line will you do it for me? Please!

Buying Real Estate - Putting it All Together

An old friend emailed me out of the blue today. His email read,

"Good morning Josiah. How were your Holidays? My girlfriend and I are going to start looking for a house. Our lease is up in May and we would like to have an idea of what we want by that time…possibly even buy if we can find the right home."

It went on to say, "We are both first time home buyers, so this is new to both of us." And, "Where do we go from here?"

What a good question, "where do we go from here?" Well I recommend that you get in contact with your Realtor. If you don't have one, find one. You want someone that you trust, someone that values your business but does not necessarily need it.

Your Realtor should be an excellent source of information for you, should help you arrange your financing, help you locate a home, negotiate a fair or better-than-fair price for you, and guide you through the process of finalizing the home sale.

This video will help you understand a little bit more about the home buying process and what your Realtor will do for you.

For current, up-to-the-minute listings, current mortgage rates, mortgage qualifier tool and more visit my website www.josiahboone.com. If you have any questions leave a comment, email, call, or IM me, I'm always hear to help!

Sell in the winter? Isn't spring the best time to sell? Maybe not in 2010!

Many of the clients I work with have the idea that you should wait until spring to sell. After all, the house looks nicer with fresh-cut green lawn, nice flowers and sun outside. Plus, what buyer is going to be out looking for a home on a cold rainy or snowy day in Spokane?

This year home buyers in Spokane are seeing an almost perfect confluence of fair prices, low mortgage rates, a fair amount of inventory to choose from, combined with some incredible government programs designed to stimulate the economy (see my post from December 30th) that end on April 30th.

You say, "Great Josiah, what does that mean to me? Did you forget...I'm SELLING my house?" No, I didn't forget that you're SELLING. What you need to understand is that most home buyers out there are well aware of the great opportunity they have and will be out shopping very soon, if not already. They don't want to miss out on the government programs that are set to end, nor do they want to miss out on the other opportunities.

Let's do the math, it is the beginning of January homes are selling in about 90 days. That means if you put your home on the market today at fair market value it would likely sell by the end of March or early April. If you wait until spring it will likely be too late for the influx of home buyers to take advantage of the great opportunities!

And by the way, let's not forget, normally when you sell you're looking for a new place to buy as well. Why not take advantage of the same opportunities that the buyer of your home will? It's a win-win!