First, the basic principles.  I support a national union of Realtors under the founding principles- for the protection of consumers through the Code of Ethics, Standards of Practice, education of consumers and members, and the world’s greatest tool for real estate commerce- the MLS.  However, all real estate is local and so should be the power base of the Realtor’s union.

I am against NAR making contributions to political candidates- period.  Here’s why.

A.  There’s only one political office elected by the the entire nation- the President.  Our national union cannot comply with the wishes of all members by supporting one candidate over another.
B.  NAR contributes to candidates from both major parties in an effort to please all members.  If I am a Republican or a Democrat, why should I be forced to give money to the other side?
C.  We can collectively throw millions of dollars at any candidate, but there’s no guarantee they will bend to our will once they take office. That’s not how it works.   It’s a huge waste of money.
D.  As a citizen, I can already support or oppose any candidate from the local to national level through voting, cash or involvement.  Why should I be forced to do it through NAR?  Once NAR’s overhead costs are taken out, the amount and effect of my contribution is reduced.
E.  Political contributions should be voluntary.  If I am struggling to feed my family, the last place I would spend money is to support a bunch of lobbyists.
F.  How I spend my money is my choice.  If the members vote to spend money in a way I don’t like, why should I be forced to participate?  NAR is not the government!
G.  When NAR pumps thousands of dollars into a local election in another state with some of my money, how does that help me?

I want equality!  If you agree, please join me in voicing your opinion.

Dan Rowe ABR CRS GRI, Realtor
Broker of Dan Rowe Realty
Boise Idaho
(208) 336-2744
danrowe@cableone.net
www.repomandan.com

They estimate over 17,000 properties were foreclosed in 2009, which is 1 in 37 houses, double what it was in 2008 and nearly four times what it was in 2007.

However, Idaho is a long way from #1 Nevada with 1 in 10 properties foreclosed in 2009 and not that far from the national average of 1 in 45.

I have noticed that RealtyTrac gets major free advertising from the media by putting out these dramatic-sounding statistics.  For example- 1 in 37 homes is only 2.7%. Doesn’t sound so dramatic does it? It’s not good, but it’s not that bad either, compared to 2.2% nationwide.

What about the Boise area?

According to the Census Bureau, there are approximatley 80,000 households in the city of Boise. Today, there are less than 200 foreclosed homes listed for sale- That is 0.25% of all households.

In the Boise-Nampa MSA, I estimate there are approximately 210,000 households. With less than 600 foreclosed homes available, that is only 0.28% of all households.

I am using only active homes to make my point, because only current supply affects prices.  There are many foreclosed homes with contracts pending or not yet marketed that would add to the number, but the foreclosure bubble is not near as dire as the media makes it sound. Just wanted you to know.

Who knows where the best buys are?  Repoman!

Dan Rowe ABR CRS GRI, Broker of Dan Rowe Realty in Boise Idaho   (208) 866-3481

The city of Kuna is experiencing the lowest overall supply of homes since the boom of 2005-2006.  As of Nov 1st, Kuna is showing only a 2.5-month supply of homes, the lowest in the Boise Metro and nearly 1/3rd of a normal 6-month supply.  The last time this happened, homes in Kuna were appreciating at a double-digit annual pace.

But prices are not rising yet, due to the foreclosure bubble.  There are currently 249 homes listed for sale and 96 under pending contracts in Kuna.  Much like the rest of the Boise area with high percentages of distressed sales, over 35% of the homes for sale in Kuna are short sales priced for liquidation and racing to avoid foreclosure.  Foreclosed homes (REO) make up 3.6% of all homes for sale.  These conditions are keeping prices soft on all homes.

Another sign that prices are poised to rise is in the new construction sector- Kuna has less than a 2-month supply of new homes, based on the pace of sales.  New construction represents 33.8% of all homes for sale in Kuna today.

What does this all mean to you?

For buyers, it is a fabulous time to buy a home at a bargain price in Kuna, especially with interest rates near 35-year lows.

For future sellers, great prospects for appreciation after the foreclosure bubble peaks.  I say future sellers because now is not a good time to sell with prices way down, unless you plan to re-buy and can use the tax credit for current homeowners.

Ask me about Kuna home bargains in short sales, HUD, VA and Bank-owned homes.

Dan Rowe ABR CRS GRI, Broker

(208) 866-3481

danrowe@cableone.net

Let us start with resale issues:  The pool of potential buyers greatly affects the liquidity and potential value of your investment.  When selling, multi-family properties appeal to mostly investors, a much smaller group than homebuyers. This factor certanly will affect your re-sale. Plus, investors looking only to make money will generally pay less than a homebuyer who just wants a place to live. 

Another issue affecting resale is the availablilty of financing.  The more plentiful homebuyers have access to hundreds of financing programs with as little as zero down and at lower rates than investors.  The smaller pool of investors have many fewer financing options and need a much larger down payment, especially on 3 or more units.

Another point on liquidity:  You cannot sell just one unit of a four-plex, but you can sell one of four homes if the need arises.

Diversification:  Which is safer? A four-plex in one location or homes in multiple locations.

Valuation:  Single-family homes are appraised based on comparable sales at their highest and best use, which is as a home.  Multi-family properties are valued based on income and what investors are willing to pay for that income, which can be substantially less in a slow market.  Raising the rent may be the only way to increase value on multi-family propeties.

Vacancy costs:   I have no specifics to back it up, but from all the reports I get, single-family homes have the lowest vacancy rates, with generally more stable renters. 

Maintenance costs:  Renters of single-family homes have more of a presumption of ownership and generally take better care of the property than apartment dwellers, in my experience.  Apartment renters don’t own lawn mowers either. 

Multi-family properties can be a great investment, but these are not minor drawbacks.

Dan Rowe ABR CRS GRI
Broker of Dan Rowe Realty in Boise Idaho 

(208)866-3481  

danrowe@cableone.net

Ask me for the best available investments in the Boise Idaho area.

The debt-to-income ratio is all important in determining how much you can borrow. In general, your maximum house payment, including principle, interest, taxes & insurance, can be no more than 30% of your gross monthly income before taxes. For example, if you make $3,000 per month, your maximum payment would be $900 PITI. You may need a professional to help you back out taxes and insurance and calculate the maximum loan amount based on current interest rates and down payment, but as a general rule of thumb you can buy a home equivalent to 3 times your annual income. With current low rates- maybe a little more.

Your debt ratio is also crucial. Debt is defined as consumer debt that lasts longer than a few months: installment purchases, car payments, student loans, child support, minimum payments on credit cards if you carry a balance. I use 41% as a rule of thumb, but it varies with the lender and type of loan. This is how it works. Your total house payment plus your debt can be no higher than 41% of your gross monthly income. For example: On $3,000 monthly income the maximum debt would be $1230. Back out the $900 and any debt over $330 will reduced your maximum payment. If you had a $500 car payment, your maximum payment could be only $730.

Again, these are general rules of thumb and you should consult with both a lender and a Realtor concerning your unique situation.

Dan Rowe ABR CRS GRI

Broker of Dan Rowe Realty in Boise Idaho

(208) 866-3481

www.repomandan.com

This information is public record and free if you know where to look.  These are simply homes that have had a default notice filed on them because the owner is behind on payments.  Lenders must publish a default notice in the local paper called a Notice of Trustee Sale, giving the owner 120 days to cure the default before the foreclosure sale. You can get this same list by looking in the newspaper every day or at archives.

These homes may never be for sale.  The owner has not given permission for the home to be advertised for sale as a pre-foreclosure.   The owner has many options to avoid the foreclosure, including catching up the payments, working out a deal with the lender, or selling subject to short sale.

If you want to buy it now, you can join the ambulance chasers and scam artists looking to profit from the desperate owner’s situation by contacting the owner directly.  Many of these owners are deluged with unsolicited offers to “help” them avoid foreclosure. 

If the home does make it to the default sale, you must pay cash with no opportunity to inspect and limited guarantees of title.  Talk about risky!

Many of these websites publish a “price”, which may be the amount delinquent or the loan balance, but there may be other loans outstanding.  This “price” is absolutley misleading because it has nothing to do with market value or what you could buy it for.  This buyer who contacted me said the price of the home was advertised as $4,000.  In reality, the lowest priced home actually for sale was $40,000.

Many buyers fall for this idea that homes can be bought for pennies on the dollar.  If you believe that, I’ve got a bridge I could sell you.  I have 19 years experience helping buyers purchase foreclosed homes in the Boise area.  If these deals were real, I’d be all over it.  Or buying them myself.

Dan Rowe ABR CRS GRI, Broker
danrowe@cableone.net
(208) 866-3481
www.repomandan.com

Ask me for the REAL opportunities!