6 Tips to Prepare your home for a Quick sell.

Some would tell you that quick sells are by means of luck. Louis Pasteur said “Luck favors the prepared”. He knew something about accidental discoveries. Though this is inevitably true, waiting for luck will do nothing to speed up the process. Preparation, preparation, and preparation are the three things you most need to ensure a quick sell. Here are 6 tips to ensure that you are prepared.

1. Remove personal items
   Pack up those personal photographs and family heirlooms. Buyers have a hard time seeing past personal object, and you don’t want them to be distracted. You want buyers to imagine their own photos on the walls, and they can’t do that if yours are there!
2. Get rid of Clutter!
   People collect an amazing quantity of junk. If you haven’t used it in over a year, you probably don’t need it.

• If you don’t need it, why not donate it or throw it away?
• Pack up those knickknacks.
• Clean off everything on kitchen counters.
• Put essential items used daily in a small box that can be stored in a closet when not in use.
• Think of this process as a head-start on the packing you will eventually need to do anyway.

1. Rearrange Bedroom Closets and Kitchen Cabinets.
   Buyers will open closet and cabinet doors. Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:

• Neatly stack dishes.
• Hang shirts together, buttoned and facing the same direction.
• Line up shoes.

1. Rent a Storage Unit.
   Almost every home shows better with less furniture. Remove pieces of furniture that block paths and walkways and put them in storage. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room’s purpose and plenty of room to move around. Remove/Replace
2. Make Minor Repairs.

• Replace cracked floor or counter tiles.
• Patch holes in walls.
• Fix leaky faucets.
• Fix doors that don’t close properly and kitchen drawers that jam.
• Consider painting your walls neutral colors, especially if you have purple or pink walls.
  (Don’t give buyers any reason to remember your home as “the house with the orange bathroom.”)
• Replace burned-out light bulbs.
• If you’ve considered replacing a worn bedspread, do so now!

1. Make the House Sparkle!

• Wash windows inside and out.
• Rent a pressure washer and spray down sidewalks and exterior.
• Clean out cobwebs.
• Re-caulk tubs, showers and sinks.
• Polish chrome faucets and mirrors.
• Clean out the refrigerator.
• Vacuum daily.
• Wax floors.
• Dust furniture, ceiling fan blades and light fixtures.
• Bleach dingy grout.
• Replace worn rugs.
• Hang up fresh towels.
• Bathroom towels look great fastened with ribbon and bows.

Clean and air out any musty smelling areas. Odors are a no-no.

Just Listed! 1058 S. Bobby Ave, Kuna ID 83634

Exterior with full porch custom 2^nd master downstairs 10*20 Covered patio, dark cabinets w/pullout trays in Kitchen, Dual back-to-back vanities in master, dual sinks in hall bath, microwave, 4 panel door’s, 2” wood blinds, Jetted Tub w/shower in upstairs and downstairs master baths, upgraded flooring throughout.    100%Energy Star@ certified

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Furnace Maintenance tips that will save you Money

• A yearly inspection of a furnace extends the life of the unit and detects any hidden problems. A licensed heating contractor should vacuum out the unit, inspect the blower motor, inspect the heat exchanger for cracks, check the electronics and perform a multipoint checklist to make sure the furnace is operating properly.
• Clean or replace the furnace filter frequently during the heating season. This ensures that air returning from the inside of the house is unobstructed and clean when entering the combustion chamber. This is the easiest and most important step a homeowner can do to maintain a furnace.
• Keep vents, space heaters and baseboards clear of furniture, rugs and drapes to allow free air movement.
• Ensure there is free airflow around your furnace and make sure there are no storage items obstructing airflow.
• Do not store or use combustible materials, such as chemicals, paint, rags, clothing, draperies, paper, cleaning products, gasoline, or flammable vapors and liquids in the vicinity of the furnace.
• Carbon monoxide is a colorless, odorless and lethal gas that can occur any time there is incomplete combustion or poor venting. Any home that contains fuel-burning appliances, such as a fireplace or furnace, should have a carbon monoxide alarm installed according to the manufacturer’s instructions

Nick Smith Real Estate Group

Real1Smith.com

208-859-6590

New Credit Score Reveals More About Credit Risk

Daily Real Estate News | Tuesday, October 04, 2011

CoreLogic announced its new credit score service, CoreScore, which will give lenders greater insight into a borrower’s outstanding debts and help to understand their credit worthiness. The new CoreScore credit report, which will be available to lenders and consumers, will include credit-risk information, as compliant with the Fair Credit Reporting Act.It will not replace current credit reports but aims to fill in some gaps in current credit score reports.The report will help “lenders mitigate risk by uncovering debt obligations, and increase new lending opportunities by identifying previously hidden credit behavior that could improve a consumer’s credit profile,” CoreLogic said in a press release announcing CoreScore.

According to CoreLogic, the reports will include such information as:

• Properties owned (with and without debt obligations)
• Mortgage obligations with companies that may not report to traditional credit reporting agencies
• Property legal filings, such as notices of default
• Property tax amounts and payment status
• Estimated market values on all U.S. properties owned
• Rental applications and evictions
• Inquiries and charge-offs from pay-day and online lenders
• Consumer-specific bankruptcies, liens, judgments and child support obligations

Such information will be pulled from CoreLogic’s databases on real estate, rental information and public records.
Source: “CoreLogic Launching New Borrower Credit Report,” HousingWire (Oct. 3, 2011) and “CoreLogic to Act as Supplemental Consumer Credit Repository to Augment Traditional Credit Reports,” CoreLogic (Oct. 3, 2011)

MORTGAGE LOAN RATES November 29, 2011

MORTGAGE LOAN RATES

November 29, 2011

30 YEAR FIXED

3.875% 3.988% APR*

15 YEAR FIXED

3.375% 3.567% APR*

30 YEAR FIXED FHA

3.750% 4.490% APR*

IDAHO HOUSING 100% Financing (FHA 1st, GCR 2nd)

3.750% 4.481% APR*

*APR = Annual Percentage Rate
Mortgage Rates may vary and are subject to credit approval

Boise ranks 8 among Realtor.com’s “Top 10 Turnaround Towns

Treasure Valley home sales: Investors, flippers are back

By Sandra Forester – sforester@idahostatesman.com

By Sandra Forester

Published: 11/16/11

Echoes of the pre-bust boom Low prices and mortgage rates make property a good investment now, said Sherry Oliver, a Keller Williams agent and co-owner of Real Property Management in Nampa.

Raiding 401(k)s for better returns Oliver says several clients who own property for investment also are rolling their 401K money into real estate management trusts because of the high return on investment.

Cheap Ada homes? Sorry “Everything under $100,000 in Ada County is gone,” Oliver says.

The latest prices Median prices for existing homes in Ada County last month were 11 percent higher than in October 2010, according to data from the Intermountain Multiple Listing Service. In Canyon County, they were up 19 percent

A break for builders, too New-home prices rose 23 percent in Ada County and 9 percent in Canyon.

What’s next? The housing market has likely hit bottom and begun its slow climb to better health.

National recognition The turnaround on Wednesday earned Boise a rank of No. 8 among Realtor.com’s “Top 10 Turnaround Towns.”

Payment of a Lifetime

THIS FRIDAY, NOV. 18TH THRU SUNDAY, NOV. 20TH | 11AM – 5PM

The FIVE ways to get your AWESOME PAYMENT:

1: Sign up at cbhhomes.com
2: Get prequalified with Wells Fargo Home Mortgage
3: Visit any of our 63 communities throughout the valley
4: Pick your dream home
5: Be first in line this Friday to BUY!

Get the list of the 200+ ready-to-occupy new CBH homes featured in this year’s event so you can hit the ground running. CBH Homes Payment of a Lifetime event starts Friday at all of our CBH sales centers throughout the Treasure Valley.

Visit a CBH sales center to learn more about the wide variety of models and floorplans available – with fantastic low monthly payments!*

8332 W Grubstake St.

Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
www.Real1Smith.com

418 N. Mobley, Boise ID 83712

Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
www.Real1Smith.com

8296 W Packsaddle Dr

Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
www.Real1Smith.com

Here are today’s mortgage rates, slight drop from last week.

01 Nov

MORTGAGE LOAN RATES
(Effective Date)
November 01, 2011
30 YEAR FIXED
3.875% 3.988% APR*
15 YEAR FIXED
3.250% 3.442% APR*
30 YEAR FIXED FHA
3.750% 4.490% APR*
IDAHO HOUSING 100% Financing (FHA 1st, GCR 2nd)
3.750% 4.481% APR*
*APR = Annual Percentage Rate
Mortgage Rates may vary and are subject to credit approval.
Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
http://www.real1smith.com/

418 N. Mobley Dr. Boise, ID 83712

What Drives Mortgage Interest Rates

Mortgage interest rates are not set by banks, lenders or brokers. Mortgage interest rates are based on mortgage-backed securities (MBS), which trade just like regular stocks and bonds. In essence, if MBS selling volume is lower, bond yields and mortgage interest rates increase. Conversely, if MBS selling volume is higher, bond yields and mortgage interest rates decrease.
Mortgage interest rates change daily and are driven by multiple forces. One indirect external force is interest rates in general. The Federal Reserve typically has considerable control over interest rates. It does so by tightening the money supply during times of economic expansion, which results in higher interest rates. Conversely, the Fed can loosen the money supply during times of economic contraction, which results in lower interest rates.

The Fed can also take a more direct role in controlling mortgage rates. The Fed moved aggressively to push down mortgage rates by buying about $2.1 trillion of MBS. This policy, conducted in 2009 and 2010, was largely successful.

Events overseas can also affect mortgage rates. Recent economic problems in Europe have led to large purchases of U.S. Treasurys, which drove down yields and subsequently drove down mortgage interest rates. Current jitters that Greece might default on its debt have continued downward pressure on mortgage interest rates.

In an effort to keep borrowing costs down and spur economic growth, the Fed has started a new program called Operation Twist. The plan entails selling $400 billion in short-term Treasurys in exchange for the same amount of longer-term Treasurys. The Fed also announced it would be reinvesting incoming principal from previously purchased MBS to buy additional MBS.

Mortgage interest rates most closely track the 10-year Treasury note. The theory behind Operation Twist is that purchasing such longer-term Treasurys will lower their yield, thus putting downward pressure on mortgage interest rates.http://www.real1smith.com/

Here are today’s mortgage rates 9/27/11

MORTGAGE LOAN RATES
(Effective Date)
September 27, 2011

30 YEAR FIXED

3.875% 3.988% APR*

15 YEAR FIXED

3.250% 3.442% APR*

30 YEAR FIXED FHA

3.750% 4.490% APR*

IDAHO HOUSING 100% Financing (FHA 1st, GCR 2nd)

3.750% 4.481% APR*

*APR = Annual Percentage Rate
Mortgage Rates may vary and are subject to credit approval



Nick SmithSilvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
www.Real1Smith.com

Did you hear? Boise is ranked #3 in the Top 10 Places to Retire by Money Magazine

Boise, Idaho, has a thriving cultural scene.

Population: 205,600

% over 50: 30%

Median home price: $120,000

Top state income tax: 7.8%*

Cost of living index: 97

If you’re the type who can’t survive without your symphony, art, and theater fix, you may have resigned yourself to staying in some pricey coastal burg during retirement. Take a look at Idaho’s capital city instead.
Granted, Boise is no Manhattan. But its thriving cultural scene includes an opera company, a philharmonic orchestra, and a ballet. At Boise Art Museum, which focuses on contemporary American art, you’ll see works by Ansel Adams and Chuck Close.
Catch shows at Boise State University’s Morrison Center for the Performing Arts, which hosts not only classical events but also touring Broadway shows and such boomer draws as Merle Haggard and Kris Kristofferson. Or hit the annual Shakespeare Festival at the city’s 770-seat outdoor amphitheater.
Residents also enjoy all the outdoor activities you might expect of a city that’s flanked by mountains and bisected by a river full of fish — and that has a mild climate year round.
Another plus: Violent crime in Boise is little more than half the national average. That’s a remarkable score for a city this size.

Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
http://www.real1smith.com/

Real Estate Appraisals: Myths and Realities

Myth: An Appraisal is the same as a home inspection.
Reality: An Appraisal does not serve the same purpose as an inspection. The Appraiser forms an opinion of value in the Appraisal process and resulting report. A home inspector determines the condition of the home and its major components and reports these findings.



Myth: The appraised value of a property will vary, depending upon whether the appraisal is conducted for the buyer or the seller.
Reality: The appraiser has no vested interest in the outcome of the appraisal and should render services with independence, objectivity and impartiality – no matter for whom the appraisal is conducted.

Myth: Market value should approximate replacement cost.
Reality: Market value is based on what a willing buyer likely would pay a willing seller for a particular property, with neither being under pressure to buy or sell. Replacement cost is the dollar amount required to reconstruct a property in-kind.



Myth: Appraisers use a formula, such as a specific price per square foot, to figure out the value of a home.
Reality: Appraisers make a detailed analysis of all factors pertaining to the value of a home including its location, condition, size, proximity to facilities and recent sale prices of comparable properties.

Myth: In a robust economy – when the sales prices of homes in a given area are reported to be rising by a particular percentage – the value of individual properties in the area can be expected to appreciate by that same percentage.
Reality: Value appreciation of a specific property must be determined on an individualized basis, factoring in data on comparable properties and other relevant considerations. This is true in good times as well as bad.

Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance real estate, they own their appraisal.
Reality: The appraisal is, in fact, legally owned by the lender – unless the lender “releases its interest” in the document. However, consumers must be given a copy of the appraisal report, upon written request, under the Equal Credit Opportunity Act.



Myth: Appraisers are hired only to estimate real estate property values in property sales involving mortgage-lending transactions.
Reality: Depending upon their qualifications and designations, appraisers can and do provide a variety of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.



Myth: You generally can tell what a property is worth simply by looking at the outside.
Reality: Property value is determined by a number of factors, including location, condition, improvements, amenities, and market trends.



Myth: Consumers need not be concerned with what is in the appraisal document so long as it satisfies the needs of their lending institution.
Reality: Only if consumers read a copy of their appraisal can they double-check its accuracy and question the result. Also, it makes a valuable record for future reference, containing useful and often-revealing information – including the legal and physical description of the property, square footage measurements, list of comparable properties in the neighborhood, neighborhood description and a narrative of current real-estate activity and/or market trends in the vicinity.



Myth: Assessed value should equate to market value.
Reality: While most states support the concept that assessed value approximate estimated market value, this often is not the case. Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an extended period.

Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
www.Real1Smith.com

5 Things Every Homeowner Should do Before Listing Their Home.

1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. Sometimes, a coat of fresh paint and some well thought-out rearranging of furniture is all it takes to get your home in top selling shape. But other times, it’s not that simple.

Hidden defects like structural issues, and mold, plague home sellers all the time. In many cases, the sellers had no idea these defects were there! In order to ensure that your home sale goes as smoothly as possible, it’s a good idea to obtain a pre-sale home inspection. Even if you don’t end up fixing the problems yourself, you’ll have the benefit of full disclosure and lessen the chances of offers being withdrawn due to unexpected flaws in your property.

Usually, a home inspection costs between $200 and $500. It’s not pocket change, but having a pre-sale inspection can save you thousands, even tens of thousands of dollars.



2. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.



3. Organize and clean. Reduce clutter and pack up your least-used items, such as large blenders and other kitchen appliances, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.



4. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.




6. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?

Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
www.Real1Smith.com

Does Moving Up Make Sense for You and Your Family?

These five questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer YES to most of the questions, it’s a good indicator that you may be time to move.



1. Have you built equity in your current home? Look at your yearly mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are primarily interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.



2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving. Click Here for helpful tools to calculate what you can afford.



3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer proximity to your employment or live in a better school district. Click Here to find out more about schools, employment, entertainment, and recreation in the Boise, Idaho area.



4. Are you comfortable moving in the current housing market? If your market is hot or a seller’s market, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow or buyer’s market, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home. The past three years the Boise real estate market has been a buyer’s market but over the past few months we have sign that we are starting to recover.



5. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer. With historical low interest rate, and low home price people buying power has never been better.

Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
www.Real1Smith.com

Five Things to Know about Homeowner’s Insurance

1. Exclusions to coverage. For example, most insurance policies do not cover flood or earthquake damage as a standard item. These types of coverage must be purchased separately. Costs vary depending on how much insurance is purchased, what it covers, and the property’s risk.

2. Dollar limitations on claims. Even if you are covered for a risk, there may be a limit on how much the insurer will pay. For example, many policies limit the amount paid for stolen jewelry unless items are insured separately.

3. Replacement cost. If your home is destroyed you’ll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient. This means that if your home is insured for $250,000 and it costs $280,000 to replace it, you’ll only receive $250,000.

4. Actual cash value. The term “actual cash value” is not as easily defined. Some courts have interpreted the term to mean “fair market value,” which is the amount a buyer would pay a seller if neither were under undue time constraints. Most courts, however, have upheld the insurance industry’s traditional definition: the cost to replace with new property of like kind and quality, less depreciation. Courts have varied in their rulings as to whether or not depreciation includes obsolescence (loss of usefulness as a result of outmoded design, construction, etc.).

5. Liability. Any type of insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence. Liability insurance policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. Intentional damage and contractual liabilities are typically not covered in these types of policies. There is usually an upper limit to the amount of coverage provided. Be sure that it’s sufficient if you have significant assets.

Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
www.Real1Smith.com

7 Reasons to Own Your Home (Buy vs. Rent)

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number ofU.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at http://www.real1smith.com/calculators.cfm?calculatortype=mortgageRentVsBuy

14 items Not to Overlook on a Final Walk-through

It’s guaranteed to be chaotic right before closing, but you should always make time for a final walk-through. Your goal is to make sure that your home is in the same condition you expected it would be. Ideally, the sellers already have moved out. This is your last chance to check that appliances are in working condition and that agreed-upon repairs have been made. Here’s a detailed list of what not to overlook for on your final walk-through.

1. Hot water heater is working.

2.Garage door opener and other remotes are available.

3.No plants or shrubs have been removed from the yard.

4. There are no major changes to the property since you last viewed it.

5. All items that were included in the sale price — draperies, lighting fixtures, etc. — are still there.

6. Screens and storm windows are in place or stored.

7.All appliances are operating, such as the dishwasher, washer and dryer, oven, etc.

8.Intercom, doorbell, and alarm are operational.

9. Hot water heater is working.

10. Heating and air conditioning system is working

11. Garage door opener and other remotes are available.

12. Instruction books and warranties on appliances and fixtures are available.

13.All personal items of the sellers and all debris have been removed. Check the basement, attic, and every room, closet, and crawlspace.

14. Repairs you’ve requested have been made. Obtain copies of paid bills and warranties

Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
http://real1smith.com/

Good News in the Ada County Real Estate Market.

July sales were 564 in Ada County, an increase of 42% compared to sales in July 2010…yep…that’s right 42%!

July sales were 564 in Ada County, an increase of 42% compared to sales in July 2010…yep…that’s right 42%!

Historically, July sales are 9.75% below June levels. July 2011 had 8.6% fewer sales than June 2011.

I am really happy to report that year-to-date 2011 sales, which total 3,580 are ahead of YTD 2010 sales; 3,524. As of the end of July we are 56 units ahead of year-to-date 2010! That’s a 1.5% increase.

Of our total sales in July… 42% were distressed….down 5% from June 2011. In January 2011 57% of our sales were distressed. (Short sales 15% and REO’s 27%). Distressed sales continue to cast a long shadow over the market, but they are no longer the “majority” of transactions!

For homes sold in July, the average number of “Days on Market” was 79. This is down from 89 days last year this time and down from 93 days in January 2011.

Pending sales at the end of July were 937; and decrease of 3% from the end of June. Looking back at pending sales from March 2011 to July 2011, we see an average near 1,000 at the end of each month. This is another sign of the long term recovery we are experiencing. The percentage of pending sales in distress was essentially unchanged from June, totaling 43% overall. We are now at four consecutive months below 50%.

July median home price held on to gains made in June. Overall median price was $152,750; down 6.6% from July 2010. This is the second highest median price we’ve had so far this year.

New Homes median price for June 2011 was $212,000; the same as June 2010.

The number of houses available for sale at the end of July stayed below 2,600 for the second month in a row. This is down 2% from June and 33% less than last year at this time. Currently available inventory compares to early 2006.

At the same time, the percentage of active inventory that is distressed dropped almost 1% from June to 33%. This is the fifth consecutive monthly decline and keeps us below the 40% levels set last spring….when we were on the increase.

In Ada County we have 4 months of inventory on hand…historically this number defines a strong “seller’s market”. The price category in shortest supply is <$119,000 with 2.8 months available. This is closely followed by the $200,000 to $249,000 with 4 months. Consumption of inventory is expanding to all price ranges. In the price ranges from $250,000 to $499,000 we have less than 6 months of available inventory. These are the lowest numbers in more than a year!

There is also positive news on some of the higher priced inventory; $500,000 to $699,999 inventory dropped for a third month in a row to 7.2!

We continue to “benefit” from inventory levels much lower than national average.

Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
http://www.real1smith.com/

Top 10 tax tips for home sellers, straight from the IRS

From time to time the IRS releases tips designed to help people with their taxes. Some of these are quite useful. Last week the agency released “Ten Tax Tips for Individuals Selling Their Home,” (IRS Summertime Tax Tip 2011-15).

As a real estate agent it is not my job to give home sellers tax advice. Indeed, it is advisable not to, since I could end up getting sued if you give wrong advice.Instead, I sellers to this list of IRS tips. It’s a good starting place for them to begin to understand this often complex area of tax law.
Here are the IRS’s top 10 tax tips for home sellers:
1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.

2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.

4. If you can exclude all of the gain, you do not need to report the sale on your tax return.

5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.

6. You cannot deduct a loss from the sale of your main home.

7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.

8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.

9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year’s tax return.

10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.
These tips can be found on the IRS website at http://www.irs.gov/newsroom/content/0,,id=104608,00.html

How to Raise Your Credit Score

How the Credit Score Model Works
The credit scoring model was created as a means to evaluate a consumer’s likelihood of repaying debts in a timely manner. Credit scores range from 350 on the low end up to a high score of 850. As you can imagine, the higher the score, the better it will be for you when qualifying for anything we discussed above.
The simple fact is that the higher your credit score, the lower your interest rate and the easier it will be for you to qualify. A lower interest rate can translate into a substantial savings over the life of the loan when you consider the interest and finance charges that you will pay.
If you’re feeling a little dismayed about your current credit score, understanding the statistics might offer a little perspective. Believe it or not, only one out of 1,300 people in the United States maintain a credit score above 800. So the odds are strong that you fall below an 800. If so, there are steps you can take to improve upon your current credit score.
How to Raise Your Credit Score
So, what can you do eliminate the negative impact certain derogatory marks have taken on your credit?

• If you don’t have a credit card, you need one. Maintaining a balance on a credit card will help establish positive credit over time by reporting to the major credit bureaus.
• The follow up to that is DO NOT max out any of your credit cards. While you need to maintain a balance, you must keep your credit balances to less than 30% of your credit limits to improve your credit score. (This means if you have a $5,000 limit your balance should stay below $1,500.)
• If you are in over your head due to credit card debt, begin by paying down those bills. Outstanding credit balances make up 30% of your overall credit score. A high balance can and will have a negative impact on your score. Those high monthly payments will also impact your ability to qualify for a mortgage.
• If you have no credit or past credit issues, apply for a secured credit card. If you are unable to get approved for a standard credit card, the secured version might be your only option. This works similar to a debit card where you will deposit money into an account with a lender and then your credit limit is typically equal to the deposit.

In the meantime, don’t be discouraged with a low score. You can build or reestablish your credit score over time with some work.
The great news is this: If you are able to increase your credit score from a 620 to a 720 or above, you could potentially save $601 per month on mortgage payments or $7,214 per year! That’s an overall savings of $216,000 over the life of the 30−year loan!
That should be inspiration enough to get started improving your credit score today!

Wow, 30 year fixed rates hit 3.96%!!!

Idaho Housing 100% financing rates hit historic low of 3.96%today! If you know anyone considering buying that has a 680 credit
score or above, they may qualify for this unbelievable rate and 100%
financing. If scores are below 680 they can still get this rate and
would just need to make a 3.5% down payment. Now is definitely the
time to buy if you know anyone sitting on the fence. Also a great
time to refinance if you are within 105% of the appraised value of
your home. Please let me know if you or any of your clients need a
free, no obligation pre-approval today.

Thank you,
Mortgage Loan Rates
August 09, 2011
30 YEAR FIXED
4.250% 4.363% APR*
15 YEAR FIXED
3.500% 3.692% APR*
30 YEAR FIXED FHA
4.125% 4.865% APR*
IDAHO HOUSING 100% Financing (FHA 1st, GCR 2nd)
3.960% 4.691% APR*
*APR = Annual Percentage Rate
Mortgage Rates may vary and are subject to credit approval.
Certain restrictions apply.
Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
http://www.real1smith.com/

How to Choose a Neighborhood

 

Narrow your home search by identifying neighborhoods that are right for you.

When evaluating a neighborhood you should investigate local conditions. Depending on your own particular needs and tastes, some of the following factors may be more important considerations than others:

• quality of schools
• property values
• traffic
• crime rate
• future construction
• proximity to schools, employment, hospitals, shops, public transportation, prisons, freeways, airports, beaches, parks, stadiums and cultural activities such as museums, concerts and theaters.

Neighborhood search strategies
If you’re a first time-buyer with limited financial resources, it’s wise to buy a home that meets your primary needs in the best neighborhood that fits within your price range. You can maximize your home purchase location by incorporating some of the following strategies into your neighborhood search:

• Look for communities that are likely to become “hot neighborhoods” in the coming years. They can often be discovered on the periphery of the most continuously desirable areas. Look for a home in a good neighborhood that is a bit farther out of the city. If commuting is a concern, purchase a home that is close to public transportation.
• Look at the neighborhood demand by asking your REALTOR® whether multiple offers are being made, whether the gap between the list price and sale price is decreasing, and whether there is active community involvement. You can also drive around neighborhoods and see how many “sale pending” and “sold” signs there are in a particular area.
• Look into purchasing a condominium or co-op, rather than a house, in a desirable neighborhood. This way you still may be able to purchase in a prime area that you otherwise could not afford.

Copyright © by Move, Inc.

 

30 year mortgage rates drop to historic low of 4.25% today!!!

Mortgage rates have dropped to their lowest level today since
October!!! If you know anyone looking at buying or refinancing, now
is definitely the time to move forward.  Most economists are still
predicting mortgage rates to rise over the next 6 months so this is a
small window to get the ball rolling now.  Please let me know if you
MORTGAGE LOAN RATES

(Effective Date)
August 02, 2011

  30 YEAR FIXED

4.250%              4.363% APR*

15 YEAR FIXED

3.500%              3.692% APR*

30 YEAR FIXED FHA
4.250%              4.990% APR*
IDAHO HOUSING 100% FINANCING (FHA 1ST, GCR 2ND)
4.250%              4.981% APR*
*APR = Annual Percentage Rate
Mortgage Rates may vary and are subject to credit approval.
Certain restrictions apply.
or any of your colleagues or clients need anything from me and have a
great week!

Nick Smith
Silvercreek Realty Group
Cell 208-859-6590
Fax 208-319-8969
RealOneSmith@gmail.com
www.Real1Smith.com

The Value of Home Maintenance

By: John Riha

Published: March 9, 2010

Regular home maintenance is key to preserving the value of your house and property.

“It’s the little things that tend to trip up people,” says Frank Lesh, former president of the American Society of Home Inspectors and owner of Home Sweet Home Inspection Co. in Chicago. “Some cracked caulk around the windows, or maybe a furnace filter that hasn’t been changed in awhile. It may not seem like much, but behind that caulk, water could get into your sheathing, causing mold and rot. Before you know it, you’re looking at a $5,000 repair that could have been prevented by a $4 tube of caulk and a half hour of your time.”

Maintenance affects property value

Outright damage to your house is just one of the consequences of neglected maintenance. Without regular upkeep, overall property values are affected.
“If a house is in worn condition and shows a lack of preventative maintenance, the property could easily lose 10% of its appraised value,” says Mack Strickland, a professional appraiser and real estate agent in Chester, Va. “That could translate into a $15,000 or $20,000 adjustment.”
In addition, a house with chipped, fading paint, sagging gutters, and worn carpeting faces an uphill battle when it comes time to sell. Not only is it at a disadvantage in comparison with other similar homes that might be for sale in the neighborhood, but a shaggy appearance is bound to turn off prospective buyers and depress the selling price.
“It’s simple marketing principles,” says Strickland. “First impressions mean a lot to price support.”

Prolonging economic age

To a professional appraiser, diligent maintenance doesn’t translate into higher property valuations the way that improvements, upgrades, and appreciation all increase a home’s worth. But good maintenance does affect an appraiser’s estimate of a property’s economic age—the number of years that a house is expected to survive.
Economic age is a key factor in helping appraisers determine depreciation—the rate at which a house is losing value. A well-maintained house with a long, healthy economic age depreciates at a much slower rate than a poorly maintained house, helping to preserve value.

Estimating the value of maintenance

Although professional appraisers don’t assign a positive value to home maintenance, there are indications that maintenance is not just about preventing little problems from becoming larger. A study by researchers at the University of Connecticut and Syracuse University suggests that maintenance actually increases the value of a house by about 1% each year, meaning that getting off the couch and heading outside with a caulking gun is more than simply a chore—it actually makes money.
“It’s like going to the gym,” says Dr. John P. Harding, Professor of Finance & Real Estate at UConn’s School of Business and an author of the study. “You have to put in the effort to see the results. In that respect, people and houses are somewhat similar—the older (they are), the more work is needed.”
Harding notes that the 1% gain in valuation usually is offset by the ongoing cost of maintenance. “Simply put,” he says, “maintenance costs money, so it’s probably best to say that the net effect of regular maintenance is to slow the rate of depreciation.”

How much does maintenance cost?

How much money is required for annual maintenance varies. Some years, routine tasks, such as cleaning gutters and changing furnace filters, are all that’s needed, and your total expenditures may be a few hundred dollars. Other years may include major replacements, such as a new roof, at a cost of $10,000 or more.
Over time, annual maintenance costs average more than $3,300, according to data from the U.S. Census. Various lending institutions, such as Directors Credit Union and LendingTree.com, agree, placing maintenance costs at 1% to 3% of initial house price. That means owners of a $200,000 house should plan to budget $2,000 to $6,000 per year for ongoing upkeep and replacements.

Proactive maintenance strategies

Knowing these average costs can help homeowners be prepared, says Melanie McLane, a professional appraiser and real estate agent in Williamsport, Pa. “It’s called reserve for replacements,” says McLane. “Commercial real estate investors use it to make sure they have enough cash on hand for replacing systems and materials.”
McLane suggests a similar strategy for homeowners, setting aside a cash reserve that’s used strictly for home repair and maintenance. That way, routine upkeep is a snap and any significant replacements won’t blindside the family budget. McLane’s other strategies include:
Play offense, not defense. Proactive maintenance is key to preventing small problems from becoming big issues. Take the initiative with regular inspections. Create and faithfully follow a maintenance schedule. If you’re unsure of what needs to be done, a $200 to $300 visit from a professional inspector can be invaluable in pointing out quick fixes and potential problems.
Plan a room-per-year redo. “Pick a different room every year and go through it, fixing and improving as you go,” says McLane. “That helps keep maintenance fun and interesting.”
Keep track. “Having a notebook of all your maintenance and upgrades, along with receipts, is a powerful tool when it comes to sell your home,” advises McLane. “It gets rid of any doubts for the buyer, and it says you are a meticulous, caring homeowner.” A maintenance record also proves repairs and replacements for systems, such as wiring and plumbing, which might not be readily apparent.

New Program to Help Home Owners Has Great Benefits, But Tough Rules

By: Dona DeZube

Published: June 21, 2011

If you’re having trouble making your mortgage payment, there are a billion reasons to check out the latest federal government mortgage assistance program. The U.S. Department of Housing and Urban Development’s Emergency Homeowners Loan Program, now running in 27 states and Puerto Rico, will dole out $1 billion in interest-free loans to about 30,000 home owners who are unemployed, under-employed, or suffering financially due to a medical crisis.

If you’re having trouble making your mortgage payment, there are a billion reasons to check out the latest federal government mortgage assistance program. The U.S. Department of Housing and Urban Development’s Emergency Homeowners Loan Program, now running in 27 states and Puerto Rico, will dole out $1 billion in interest-free loans to about 30,000 home owners who are unemployed, under-employed, or suffering financially due to a medical crisis.
It’s a federal program, so of course there’s paperwork. And you only have until July 22 to get it filled out and over to one of the counseling agencies helping to run the program. Call 855-346-3345 for information about participating agencies in your area.
You’ll know by Oct. 1 if you’ve been approved for EHLP because the money has to be obligated before the federal government’s fiscal year ends on Sept. 30th.
The toughest thing about the program may be the eligibility rules. If you want to be approved for EHLP, you can’t:

• Have federal tax liens

• Have past-due student loans (deferments and forbearance are OK)

• Have more than one 60-day late mortgage payment in the past two years

• Be in bankruptcy

• Have family income of more than $75,000 or 120% of the area median income

Then there are things you must have to get into EHLP:

• Be a minimum of three months late on your mortgage payment.

• Income that’s at least 15% less than what you were earning in 2009.

• The ability to make your full mortgage payment again in two years, because you’re likely to be working or have another source of income again by then.

That last requirement will be hard for HUD to prove; it’ll likely be up to an underwriter to decide who qualifies.
But if you can meet those requirements (as well as a bunch more that the credit counselors running the program will tell you about), EHLP is a sweet deal.
You have to agree to pay 31% of your family’s monthly income toward the mortgage payment (minimum payment is $150). The federal government loans you the money to pay the rest of your mortgage payment.
You can keep getting that subsidy for two years, or until you’ve borrowed $50,000.
The best part is that if you make your mortgage payments on time, the government forgives 20% of the EHLP loan every year. So in five years, your loan is completely forgiven.
If you think there’s even the slightest possibility you’d qualify for the program, you should go for it. You’ve got nothing to lose and a lot of mortgage payment help to gain.

Three energy saving home improvements that pay off

Rule of thumb: Try to surpass the 2.3% yearly average with energy saving home improvements that decrease your energy consumption by 5% or more but have a modest initial investment. Remember, to ask whether your utility or state government offers rebates or tax credits for these improvements.
1. Seal and insulate ductwork that passes through unheated spaces—the attic, a crawl space, a garage. This one improvement can enhance the efficiency of your heating and cooling system by 20%—a 5% reduction in your monthly bill. If you employ an HVAC pro to perform this job, you'll spend a few hundred dollars for labor and materials.
2. Purchase a programmable thermostat. For merely $25 to $250, you can save, on average, around 8% on energy bills simply by programming it properly.
3. Increase attic insulation and seal air leaks. This is one of the best energy-saving improvements out there. Just by insulating and sealing your home can reduce your energy bills by 10%. Improving your attic insulation to the R-value recommended for your region costs anywhere from $.25 to $1 per square foot, including materials and labor; it's less if you do it yourself.
But you won't get the maximum savings if you don't seal air leaks, so plan this as a combo job. Caulking and weather-stripping usually costs from $50 to $350, depending on the size of your house.

How Do Interest Rates Affect Buying Power?

In today’s volatile real estate market, I am often asked by buyers: “Should I wait until the market ‘bottoms out’ before I purchase, or should I act now?” The best answer is…”That depends.” It depends on what you want to accomplish. Are you simply wanting to get the “cheapest price” on a house or are you more concerned about what your housing costs will be over the long term? As you know, there is a huge difference between “price” and “costs.”

First of all, it is impossible to actually “time” the market to the point of buying a home at the absolute “bottom” of the market. In the meantime, while you wait to “buy at the bottom,” what happens if interest rates go up? (and they will!) Let’s assume you want to purchase a median priced home at $250,000. If interest rates go up by just 1/4 of one percent (.25%), you will need to earn an additional three percent (3%) in income to qualify for the same $250,000 house. If you don’t expect your income to go up by 3%, then you must purchase a home priced 3% less. What’s worse, for every .25% increase in interest, it ends up costing you an additional $9,518 in interest payments over the course of the loan. Now, if rates go up by one full percentage point (1%), that would cost you $38,072 in additional interest over the life of the loan. What if rates go up 1, 2 or 3 percent while you’re waiting to “time the market?” What will you actually save?
We know that mortgage interest rates are at historical lows and will be going up. The question is “When will they go up? The window of opportunity for low rates may be only slightly opened. So, if you are thinking of buying your first home, a move-up home, a vacation home, downsizing or an investment property, right now may be your very best time to do so. Otherwise, it could end up costing you more…a lot more as rates begin to climb.
By:Greg Blatt

Foreclosure Alternative: The Short Sale

A short sale is far from hassle-free, but it's a better alternative than foreclosure. And now you've got a little help from your friends in D.C. Here are the facts about short sales and how to get started.

Short sales get government incentives

Although short sales are not hassle-free, at least you've got the government backing you. The Home Affordable Foreclosure Alternatives (HAFA) program provides financial incentives for lenders and borrowers to avoid foreclosure through short sales or deeds in lieu of foreclosures. 

Participation in the HAFA program requires adherence to guidelines--including a standard process and minimum timeframes--that speed the process, says Dallas-based REALTOR® Tom Branch, co-author of Avoiding Foreclosure: The Field Guide to Short Sales. The HAFA program is for homeowners who can't keep their homes with the help of a loan modification.

Advantages of a short sale

• You can be a homeowner again more quickly with a short sale in your past than with a foreclosure. New Fannie Mae guidelines help you qualify for a new mortgage in as little as two years after a short sale, as opposed to up to seven years after a foreclosure.

• You will have more time to make relocation plans and save money than with a deed in lieu. A short sale may take four to 12 months. A deed in lieu of foreclosure arrangement typically requires you vacate your home within 30 to 60 days of signing, according to real estate attorney Lance Churchill.

• You can receive up to $3,000 from your lender for moving expenses at the time of closing of a HAFA short sale or a HAFA deed in lieu of foreclosure. Relocation funds are part of the incentives of HAFA, but not necessarily for other short sale or deed in lieu programs of the lenders.

• You can help your community's home values. Because the lender often receives a higher amount of the remaining loan balance than it would from the sale of a home after a foreclosure, short sales help support home values in the surrounding community.

Disadvantages of a short sale

• Your credit score will take a severe hit. But that would happen anyway with a foreclosure. Fair Isaac, creator of the FICO score, says foreclosure and short sales have virtually identical impacts on your credit score. VantageScore--a company that has created a credit score model for consumers--says a short sale will lead to only a marginally lighter hit when compared with foreclosure. 

• You may owe additional taxes. In the past, if your outstanding mortgage was $100,000 and your lender accepted a short-sale purchase offer of $90,000, you were liable for income tax on the forgiven $10,000, says Harlan D. Platt, economist and professor of finance at Northeastern University in Boston. However, the Mortgage Forgiveness Debt Relief Act of 2007, which runs through 2012, generally allows taxpayers to exclude income from the discharge of debt on their principal residence in some circumstances. Full relief is available only if the amount of forgiven debt doesn't exceed the debt that was used to acquire, construct, or rehabilitate a principal residence. Consult a tax professional and an attorney to minimize or avoid this liability.

• In some states, your lender may still be able to come after you for the difference between the short sale price and the amount needed to pay off the mortgage. Your actual agreement with your lender and state and local laws and regulations spell out the details. Consult a tax professional and an attorney to minimize or avoid this liability. 

How to proceed with a short sale

• Find a qualified REALTOR® experienced in short sales. Short sales are tough to navigate, and they're further complicated by your loan type--FHA vs. Veterans Administration vs. conventional loans. Real estate agents who specialize in short sales will know the proper steps and order of the steps involved. They'll also be able to navigate the many parties involved in the process and over-burdened loss mitigation departments. Look especially for agents who have Short Sales and Foreclosure Resource (SFR) Certification, which requires specialized training.

• Gather evidence to support your need for a short sale as opposed to a foreclosure. You'll need to prove that you have little or no equity in your home, you're behind on your payments, and you're no longer able to afford your home. You'll need to write a hardship letter to the lender describing your circumstances, such as a divorce, job loss, illness, death, or other event that has impacted your income.

A short sale can be a time-consuming process, but if you can avoid foreclosure, it's worth it in the long run.
By: Gwen Moran