Dale Alverson, Boise Idaho Real Estate

How we got here from there

Dale Alverson (43 Degrees North Real Estate) — Sun, 27 Dec 2009 16:11:28 -0800

Hi everyone! I just received a questionnaire from Steve McLinden @ Bankrate.com

The following are my responses to his questions about how the Real Estate Market went from Maximum acceleration to backwards and the cause and effect -

Q. Hi.I am a real estate journalist with Bankrate.com and am working on a piece on the largest foreclosure markets in the U.S. - of which Boise City (somewhat surprisingly) is one.

Response: ( Not really surprising considering we had 20%+ Appreciation annually from 2003-2006 - What economy can sustain 20% + annual appreciation?)

Q. My questions, posed to you for email response, are:
What led to the foreclosure situation in that market?

Response: 20%+ Appreciation annually from 2003-2006 - What economy can sustain 20% + appreciation?) Add to this the availability of stated income loans - Interest only loans - 90%+ investor loans - sub 6% interest rates and you have all the ingredients for the "perfect Real Estate Tsunami.

Q. How can consumers (buyers) take advantage of it?

Response: As many savvy Billionaires have stated publicly "Buy when everyone else is selling - and sell when everyone else is buying. Today's Prices have bottomed out in many areas and are in many places severely under replacement costs. Buying now while rates are White Hot and home prices are Sub Value is where tomorrow's profits are incubating.

Q. How can existing homeowners sell homes there?

Response: Easy - Price below competing Bank Owned Property - Stage home for maximum acceptance and offer incentives paying closing costs if needed. The fact that the home you are living in has depreciated is not a reason to stay out of the market. The market does not discriminate - If you have to give your house away to allow you to take advantage of another sellers similar dilemma then it is all relative. The important part is making sure the property you are buying is more valuable (faster appreciating) than the one you are selling -

Q. What will it take to pull out of the current doldrums?

Response: More Incentives from public or private sector ....or unemployment figures below 8% The entire housing crisis could have been derailed by the Gov't stepping in way early in 2003 and tightening the loan requirements. Once they missed that opportunity the next FIX should have been instead of bailing out the Banks & the Insurance industry and appropriating a near trillion dollar stimulus package, they could have created a public mortgage option offering 3% fixed rate interest for 10 years and requiring loan applicants to actually qualify for their loans. This would have stopped the run away home value deflation and provided a softer landing.

Q. I apologize for the short notice, but please send comments of any length to me by mid-day Tues., Dec. 29th. Unfortunately, this is a quick-turnaround story.

Response: No problem Steve - As a Buyer's Agent I am used to short notice-) Thanks for asking - always happy to provide counsel

*Questions in Questionnaire were to me from Steve Mclindend below. Responses were posted after each question

Thanks and Happy Holidays,
Steve
Steve McLinden
Bankrate.com
(817) 483-8510
Dallas area CST)

Warm regards,

Dale Alverson
e-Pro Certified
Certified Buyer Broker (CBB) - (Only One in Idaho)
Certified Relocation Professional (CRP) (one of 4 in Idaho)
Accredited Buyer Representative (ABR) (#70 of 54,000 USA) 35+ years - Representing Clients - not Sales - 43 Degrees North Real Estate
www.teamboise.com
dale@teamboise.com
Direct Cell 208-863-3093
Toll Free 800-359-0855
Fax 208-338-1010

The Cost of Complacency

Dale Alverson (43 Degrees North Real Estate) — Tue, 09 Jun 2009 01:39:32 -0700

Boise Idaho

Well it has happened hasn't it. - If you are a first time home buyer you have missed the bottom. I have tried to explain in several blogs and emails about taking advantage of the market conditions while the market was cold and the interest rate was hot. Now with a 1/2% interest rate hike last week to 5.5% we can fully appreciate the previous 4.8% financing....and we won't even talk about the rarefied air of the 3.875% financing that was available on select properties.

So now you want to know will the rate come back down. The answer is maybe - but probably not. No one knows the answer,( just as no one could predict when the rate would go up). What I can tell you is we have definitely reached bottom in the under $200k price range. In the last 90 days home prices have stabilized in the sub $200k range and the ratio of sales price to asking price has increased from 95% to around 98%-99%. The 1st time buyer Tax Rebate program has been effective in getting the lower price range moving.

With the Government increasing the Bond prices to attract investors the mortgage market is not looking as competitive and obviously investors are only loyal to the return on their investment.

The cost of complacency is more poignant when you consider the cost of mortgages relative to purchase power. Lets say you were looking at buying a $200k home with FHA 3.5% minimum down which would give you $193k loan @ 5% for a $1036. monthly payment. Now lets say while you re waiting for interest rate or home price to drop the rate goes up to 5.5%. Now your $193k loan payment goes up to $1095 per month. This .5% change in interest rate = $11,000 in purchase power! In other words you could have bought a $211,000 home with 3.5% FHA down for a $203,615 Loan amount at 5% interest for a $1093. payment!

You may say well I'm not a 1st time buyer so I am not affected as much. OK let's look at your situation. Let's say you have a $210,000 home and you have held off lowering the price $10k because you want every dollar you can get (don't we all!) Now lets say your move up home is going to be $300k and your going to put 20% down for a $240k loan. At 5% interest rate your monthly would be $1288. Now lets say you hold off for 90 more days trying to extract that infamous $10k on your existing house and in the meantime interest rates go up to 5.75% - Your monthly payment goes up to $1400. - If you would have lowered your sales price to $200k and taken the 5% money you would be $54 a month ahead even after borrowing $10K more because you took 10k less for your house!

Here is the bottom line: The cost between what you are trying to achieve today and what you will be able to achieve tomorrow will never be less than it is right now today. The longer you wait the greater the distance is going to be between what you can buy with your money today and what you can buy later. We all know that these low rates will not sustain We know that recovery will take place and with the new administration quadrupling the national debt we can be assured that we are going to have inflation. New construction is at a 2 decade low in cost of building. Building lots have been slashed in half to sub 2002 levels or lower. The cost to develop a lot tomorrow will exceed the cost of a building lot today if the bare ground was free! Builder, developers and banks are willing to sell at bottom prices to either promote growth or clear inventory.

Do what you have to do to take advantage of these conditions today! You are no longer in a gaining position by waiting. If you need to sell 1st, drop the price and make it move and take the hit. If you don't have to sell then seriously start your purchasing process now. You are going backwards while you wait.

Every 1/2% jump in interest rate on a $200k loan costs $11,289. in loss of purchase power. Are you stepping over a dollar to pick up a dime?

Let those that have ears hear - I am here waiting for your call - Let's move while we can - you have the advantage - Use it or Lose it!

Dale Alverson
e-Pro Certified
Certified Buyer Broker (CBB) - (Only One in Idaho)
Certified Relocation Professional (CRP) (one of 4 in Idaho)
Accredited Buyer Representative (ABR) (#70 of 54,000 USA)

35+ years - Representing Clients - not Sales -

43 Degrees North Real Estate www.43re.com <http://www.43re.com/>

www.teamboise.com <http://www.teamboise.com/>
dale@teamboise.com
Direct Cell 208-863-3093
Toll Free 800-359-0855
Fax 208-338-1010

Zero to Hero

Dale Alverson (43 Degrees North Real Estate) — Thu, 21 May 2009 17:17:25 -0700

Question + email + Real Town + response + phone call = answer.

Answer + phone call = $$$$ for Buyers $$$$ for sellers $$$$$ for agents = Hero !!

Here is what happened; Early this year when the Stimulus Bill first came out, I was irritated that there was no way for 90% of 1st time home owners to take advantage of the tax rebate for purchase, as most of the potential buyers had no access to the down payment and closing costs needed to purchase. In reality the Bill while sounding good is a bust as it doesn't really help those that could use it.

After many phone calls locally trying in vain to find a path or lender that could loan the Tax Rebate ahead of time I tried one last chance and sent an email to Real Town asking if anyone knew of a solution. To my surprise an agent responded and gave me information about the Missouri Housing Program that had found a way to loan the potential home buyers their Tax Rebate in advance. I contacted the Missouri people and received their information and contacted the Director of the Idaho Housing Agency giving them the information about the Missouri program. I received a polite "thank you" and heard nothing more, and finally surrendered with my energy spent.

Two months later Idaho Housing announced a Tax Rebate loan program that enabled 1st time home buyers to borrow $7000 of their $8000 Tax Rebate in advance.The following is from the IHA web site:

The American Recovery and Reinvestment Act of 2009 provided a federal income tax credit for first-time home-buyers of 10% of the sales price, up to a maximum of $8,000. This tax credit is available to qualified home buyers who purchase a home by December 1, 2009. In order to help buyers monetize this tax credit for down payment and closing costs when they purchase a home, Idaho Housing and Finance Association (IHFA), through its IdaMortgage lending program, is offering a special short-term Tax Credit 2nd Loan to qualified buyers.

In conjunction with an IdaMortgage loan, a subordinate loan will be offered to qualified first time homebuyers a maximum of 5% of the sales price up to $7,000, not to exceed 100% combined loan to value. A fee will be charged of $250 with $150 refunded upon repayment of the loan on or before the loan due date. The loan will accrue interest at 3.0% with a due date of July 1, 2010. The Tax Credit 2nd Loan is expected to be paid off from the borrower's tax refund obtained through the application of the federal tax credit. Borrower must be a first-time homebuyer and qualify for an IdaMortgage loan.

Homebuyer Education is required.

Interestingly, I only become aware last week of being the entity responsible for getting this program enacted. It was a second chance meeting with the Director of Idaho Housing who happens to be the step mother of my step son who was visiting here from Florida last week. I came in the door and my son said "you were right" ....to which I said "about what?" He answered that his step mother Julie who was at our house to see him off, informed him that it was my efforts that provided Idaho with the program. I couldn't believe that I had done something so big by merely making a few inquiries through Real Town and a few phone calls to apparently the right people!

My lesson that I wish to share with everyone is "never doubt your abilities to impact a situation that you think is bigger than you no matter how insignificant you may feel your position to be. I am reminded of someone Else's famous quote:

If not you - then who? If not now then when?

Dale Alverson CBB,ABR,CRP, e-Pro

208-863-3093

43 Degrees North Real Estate Boise, ID

www.teamboise.com

www.43RE.com

35 years Representing Clients - not sales!

FREE MONEY for 1st Time Home Buyers

Dale Alverson (43 Degrees North Real Estate) — Tue, 14 Apr 2009 00:57:23 -0700

Free Money - Is there really such a thing? Well the answer is YES! - if you are a 1st time home owner or have not owned in 3 years.

I hear you - your thinking well it's not free if you have to do something to get it right? Technically your right of course but let's look at this in real life terms.

OK...so you do have to have a FICO score above 640 ...and you do have to be able to afford the monthly payments ...and of course not everyone can, however for those that can, a separate program sponsored by Idaho Housing allows you to borrow $7,000. of your next year $8,000 1st Time Buyer Tax Refund and use the funds for down payment and closing costs today!

Now let's look at an example: Lets say you qualify and you are find a nice home for $150,000. FHA lets you have a loan for 96.5% of the sales price so you will need 3.5% down payment or $5,250 Down and closing costs of about $2,500. Under normal conditions, this would require you to have about $7,750 cash at closing. With the $7,000 loan against your $8,000 Tax credit you are about $750 short of enough to close....but wait these are not normal times are they?

If we get the seller to pay your closing costs of $2,500. (not unusual in this market) you will only have to come to closing with the $5,250 leaving you about $2,600 left after you receive your Tax Refund in 2010 and pay off your Down payment loan.

Bottom Line:You get the house for no money out of pocket and collect $2,600 for passing GO...and have ownership of a home that now allows you to claim a further Tax Deduction for interest paid on your home purchase for the next 30 years.

So tell me is there such a thing as FREEMONEY or not?

Now lets talk about Really Free Money!

If you are a Veteran you can get 100% financing - again have the seller pay your closing costs and get $8000 Tax refund in 2010. - Free probably doesn't get any more Free than this!

**This amazing program currently ends in December of this year.....so now you know ...help me get the word out to your friends - family - acquaintances - anyone you might know that can take advantage of this program. You will help them - you will help the economy - If you have been looking for a way to do your part to move America forward, this is as good a chance as were going to get!

God Bless ,and Thank you in advance for your help - We all appreciate your efforts!

Dale Alverson

Certified Buyer's Agent

43 Degrees North Real Estate

Your personal Real Estate Advocate for life

Direct Cell 208-863-3093

Timing the Real Estate Market

Dale Alverson (43 Degrees North Real Estate) — Fri, 03 Apr 2009 09:51:47 -0700

One word - NOW!

- last Friday, Jack Koskinen, interim chief executive of Freddie Mac, said that home loan rates are near the bottom and that any further decreases will be small-

We all want the last drop - the lowest price - the best time - but few will take advantage of that precise moment - because they won't realize it has happened until it is gone-

So the signal has been sent to not expect that long awaited 4.0% everyone seems to be looking for.

Just as there is no such thing as a bad profit - there is no such thing as a bad 4% Mortgage Rate. These are the lowest Rates in 3 decades .

Prices are at bottom in lower price ranges and the ability to negotiate in higher price ranges is astronomical.

If you want a barometer to determine when to invest in the Real Estate Market - Use this one: When ever properties get low enough that you can put 20% or less down and the PITI will break even with current rent prices.

Rent prices have remained stable in the last 2 decades through upswing and downswing with less than 10% deflection. Compared to the Stock Market and other investment options Real Estate is still and will always remain your best option!

Dale Alverson CBB,CRP ABR,e-PRO

43 Degrees North Real Estate

35 years Representing Clients - not sales!

800-359-0855 dale@teamboise.com

Pro's & Cons of the Stimulus Package

Dale Alverson (43 Degrees North Real Estate) — Fri, 27 Mar 2009 15:03:31 -0700

THE CON"S: Today's blog could also be called "the Calm before the Storm"With the multi Trillion Dollar Stimulus - Rescue - Save the world - fix everything while we have the money plan put into effect by the Obama-Nation Administration including both Republicans & Democrats we have before us, the brewing of the PERFECT STORM! Most people believe we are already in that Storm. I would really like to believe they are right however I think what we are seeing now is only the warning on the horizon for the "Mother of all Storms".

Never in our limited 200 years of Government have we as a nation been so leveraged into National Debt and Personal Debt and it is getting deeper - much deeper! China has determined that we are no longer a valid risk to loan additional money. Considering we have no other options to borrow the Trillions of Dollars to fund the Obama-nation Fix -it -all - grand plan, we are left with but one source of funding our predicament - the Treasury - by printing more money - lots more money -

Here is what I fear will be the result of this unparalleled debt/spending package: For the next 12-24 months as the proceeds from this package trickle down the ladders of bloated special interest groups and on into our economy,and the 1.5% of the Multi Trillion rescue goes into shovel ready projects, we will see a lull in the current economic storm presenting the facade of a recovering economy. Many people will go back to work and credit will start to flow again providing the basis for a simulated recovery. This will be the stage setting for the"Mother of all Perfect Storms"

Next year as the 900 Billion interest payment comes due and we leverage our money there-by devaluing the dollar further - we will begin the cancer of inflation in all manufactured products - Food - and energy costs (which will likely double or triple if the administration is successful in cap & trade with the energy industry) The cost of compliance with Cap & Trade will of necessity be passed on to the consumer.

The Pro's:We have a window of opportunity to get our ship rightened before the storm. The Stimulus package does create opportunities that we need to take advantage immediately. Parents should encourage any of their children that are renting to immediately take advantage of the $8000 Tax Refund to buy their 1st home. (I don't believe young families will have an opportunity to be homeowners in the future once inflation kicks in) This will have a positive effect of stimulation the housing market and allow move-up buyers to make their move while interest rates are at 3 decade lows and home prices are at record lows and discounts.

People in trouble with their existing loan and in danger of foreclosure need to take advantage of loan modification programs if they are applicable. If they do not qualify they need to seek deed in lieu of releases and get out and into affordable rental housing ASAP ( I believe with the bail out of toxic assets there will be investors that will be offering lease purchase contracts to ppeople in this predicament)

I pray that I am wrong about all of my projections and that somehow the Obama-nation is 100% correct and I am 100% wrong. With that said I think it is prudent to pray for the best and prepare for the worst- Try and get yourself debt free with only an affordable mortgage and save every dollar you can. If the worst case prevails you will be as prepared as possible. If the best case prevails you will be in a perfect position to invest in escalating price and benefit.

God Bless and keep on keeping on Plugging and Praying

Dale Alverson 43 Degrees North Real Estate

dale@teamboise.com www.43RE.com www.teamboise.com

208-863-3093

Interest Rate 3% R U Kidding???

Dale Alverson (43 Degrees North Real Estate) — Fri, 20 Mar 2009 10:19:30 -0700

Santa Coming in Spring?..... Well it sure looks that way - Yesterdays unprecedented close to the Bond Market signals an unheard of break through to a very tough layer of resistance closing 138 basis points higher.

Yesterday's result of the Federal reserve's commitment of $1.25 Trillion Dollars to buying long term treasury Bonds and buying back mortgage backed securities is a direct move to lower Mortgage Rates, as well as other consumer debt rates. This unprecedented very aggressive move, is the direct result of a major effort by the Fed to bring us out of this recession.

We don't know as of yet how low this will cause rates to go, however as of today, we are well into the 4% range, and I have confirmed a rumor that there is a local bank that will give a 3.85% 30 year fixed rate loan on bank owned property with 10% down! or 4.87% ZERO Down and NO PMI! (call me for a list of qualifying properties)

I have been saying since the start of this Real Estate bubble burst, that the answer to the problem was not Govt. bail outs to Wall Street. The answer to the whole debacle is much simpler than anyone suspects. The market would correct almost instantly if the Govt. will put the money back into the Home lending market by providing 3% 30 year fixed financing to every qualified buyer. Maybe they will finally get it right!

Windows of Opportunity Pass!

Caution*** People miss opportunities like the ones being presented today because they wait until the media tells them that if they don't hurry they will miss the opportunity. The problem is that by the time the media reports it - most of the benefit has passed.

This Window of Opportunity is already under pressure even as it has been created. Because spending this kind of money by the Fed - requires the Fed to print money, it also induces and greatly risks inflation. Yesterday there were early indicators that this is exactly what was happening. The cost of the Euro was 2 cents higher than on Wednesday when the Fed announcement came out. (a significant leap by normal standards)

Bottom Line: If you are waiting for a signal from on high to make a move in the Real Estate Market, DON"T WAIT ANY LONGER - It is TIME! This Fed incentive to the Housing Market will be effective at getting people out and the market will definitely heat up - and as you should know - the more people looking and buying - the less discount you are going to receive. Increased sales = increased inflation = less purchase power. What ARE you waiting for - Pick up the phone - Get to the Market Place - Santa has delivered -

Dale Alverson 43 Degrees North RE

35 years representing Clients! - Not Sales-

Direct Cell 208-863-3093

The High Cost of Fear and Indecision

Dale Alverson (43 Degrees North Real Estate) — Thu, 19 Mar 2009 19:53:48 -0700

Today's Blog came about from a referral from my wife/partner (Debbie Sargent Coe). Debbie avails her self to Open Houses on most week-ends ... and always... seems to come back with new people - suspects & prospects for Representation for either seller's or buyer's or both!

What makes Debbie so Special at Open House's is her ability to relate..... and her 33 years of experience understanding the dilemma's that face people looking for a new or different places to live. Most "Realtors" see this business as a "Sales Business" when in reality it is not..nor should it be. Professional Real Estate should be a "People Problem Solving Business".

The following account should clear up the mis-understanding between being a "Customer" or a "Client" and give you a glimpse into the life of our lives as Agents Representing Clients rather than Realtor's selling houses.

Back to the story.....When Debbie met the couple they were interested in selling their older remodeled home that they had put a lot of money and time into making it just right.... and now they as aging Boomers were feeling like maybe they might enjoy a less physically stressful lifestyle.They came out to see some of the Patio Homes at Hazelewood Village and literally fell in love with one of the homes that had recently been reduced in price and had just been sold to another couple. The Husband liked the home as well however felt that it was too far from his employment on the far side of the town. They stated that if they could replicate the Sold Home for the same price they would be interested in going forward - Debbie made an appointment to see their home and the next week they were referred to me as a Buyer's agent and we looked at the intended home together, and again they reiterated they would be interested if we could duplicate the home for the same reduced price the other had sold for on a lot with a view of the mountains ( a difficult task)

The Monday after I met them, I called as I promised, and the Wife said they had decided that it just wasn't going to work because the house was: 1. Too far out 2. It was going to cost them $20k-$30k to upgrade and they didn't want to really spend more than their current home was worth. and 3. With the economy being so un-stable, they thought they should do nothing and just stay in their nice little home that was all paid for. ( I found out later that they had been on & off again, looking for nearly 2 years). The Wife( a lovely lady) said we were going to hate her because they were so indecisive and I replied not at all - there was a lot at stake and they should be very concerned about taking action of any kind without really understanding the options. I told her not to worry and that we would keep in touch if they changed their mind.

Now I had a choice to make. Leave them alone making their decision based on emotion and pray for the best for them - or invest my time to represent their interest and identify their problem, and show them their options. As customers not clients at this point, we were not authorized to"Represent their Interests without a Representation agreement). - Remember: Customer = Selling.. and Agency = Representation.

The part that bothered me wasn't that I was going to lose a sale. It was the fact that they had a do-able desire and they didn't Understand THEIR PROBLEM... and because they didn't understand that they had a problem... they couldn't possibly understand a solution. The problem that they didn't understand, was the dynamics of this market today - right here and right now! If they indeed stay in their very comfortable abode and don't change their mind after the advantages of this market have disappeared, then they did the right thing. However if a few months or a year from now, the wife finally decides she really wants a "New Home for their last home, and they try to go forward. they chance to lose the entire ability to facilitate the move.

Here is why:

#1. They are trying to make a very difficult almost lateral move -from a $170k-$180k older smaller home to a New $200k larger home at near the same price ( a very tough task to say the least)

#2.Today's interest rates are artificially low and at the lowest rate in my 35 year career! This abnormally low rate will not last much longer and especially with coming inflation which will affect not only the ability to buy - but the ability to sell as well-

#3. The type of home they are interested in has been reduced below the cost to build it.. and the only reason they can build it today at the under market value is because we may be able to find a developer in this market, who may consider selling a lot to us for less than he owes on it..and the bank may allow the lot sale in order to provide some debt relief. The builder will in turn offer his sub-contractors less in order to provide them a job.....and suppliers have already rolled back their prices to below 1993 pricing in order to move product. In other words, the home will NEVER be able to built for less than it can today!

#4. The type of lot they desire is the most valuable & desireable lot in any development (a rear East viewing lot with a view of the mountains). After 4 hours of preliminary research I found only 4 possible lots in the entire Valley) In a normal market they wouldn't have a chance of replacing it at $10k-$20k more-

#5.Their home is under the magic $200k range which is the only price range that is still moving at near normal market time levels, and the ability to sell their home is at a high point of opportunity because of the Stimulus package for 1st time home buyers (this year only)as well as their price range.

#6. When comparing the appreciation advantage of a "New Modern Home" to keeping their remodeled older Home - the difference is decidedly overwhelming advantaged to the New Modern Home which should easily out distance their current home due to **functional obsolescence of thier current home. (**a term Appraisers use to adjust the value of an older home down from comparable sized newer homes)

#7. The New home will not need maintenance items for 8+ years - while the older home will continue to require more and more dollars to keep it in proper state of maintenance.

#8. Last but not least and probably the crowning factor - many if not most economists foresee a major wave of inflation in the near future as China refuses to loan any more Trillions of Dollars to the US, and the Treasury is forced to print money to pay for bloating Government Programs and Continued Government growth because they have no more money. INFLATION will likely cause Interest Rates to accelerate and the ability to purchase an undervalued New Modern Home will be ....well - history -

The choice I have to make as a professional is to decide if it is worth the time & effort to try and educate my customers to become clients so I can save them.... or if I am better off to just let them go and spend my time working with clients that are waiting to hear my counsel. As I said in the beginning - This is NOT a sales business.... it is a People Business. If your into it for the quick $$... then you should just be a "salesman" and try to sell customers before they change their mind. If your into it for the long term career, you take the time - do the research - and try to represent and educate your customers to become clients and Represent their" Best interest"...not your own. Not all customers will become clients,however, without the effort, one can only pretend to be a Professional!

We will make a final attempt to show these customers their options and hopefully turn them into clients who trust our experience and ability to show them options that work to their advantage. The difficult part of the Boise Real Estate business at this time, is seeing people make decisions based on negative information and not realizing the advantages that are available that they may lose by not being informed.

Sales People prey on customer emotions. Realtors providing Agency should provide balance to clients emotions based on prevailing logic and past experience to try and forsee the future..and use that information for their clients best interests. In some instances it will be in clients best interst to not go forward. In other instances, it will be in their best interests to go forward. It should NEVER be about the Sale - It should be about what is in the best interest of the client period!

Taking Advantage of a Down Market

Dale Alverson (43 Degrees North Real Estate) — Thu, 05 Mar 2009 12:10:07 -0800

Hello everyone! This month I thought I might try sending an email rather than a newsletter. As many of you know by now -Team Boise is now at 43 Degrees North Real Estate. Recently I have written several blogs regarding: Current Boise Market Conditions - Buying Short Sales v/s Foreclosures - Buyer Representation and most recently a response to one of Debbie's clients who was so frustrated with the market that they decided to do nothing! (Click here to view these blogs)

Today I want to give you a gift and it is free, and there are no strings attached. The Gift is Knowledge and as you know Knowledge is power! Today as your 401K accounts have reached 50% of their value from last year and you ask yourself is their any hope - the answer is YES The answer is FORECLOSURES! The absolute best hedge against the inflationary cycle coming - is going to be Real Estate. Real Estate got us into this mess and it will be Real Estate that gets us out of this mess.

Today you can buy Bank Owned Property for 20+% under the current deflated market pricing. Here is an example: Last month we penned a purchase for one of our clients for a New Construction Home - 2740 sf with 5 bedrooms 2.5 baths + a den + a bonus room - with a 3 car garage - with $20,000 worth of upgrades for $229,000 Quite a deal right? - Well today I found the same exact home with similar upgrades on a Bank Foreclosure for $189,000 ASKING PRICE! ...and we can probably get a $180k-$185k offer accepted - The above example is one of many that are out there ...and we can find them in all price ranges.

The point I am trying to make is that their is good money to be made in a down market. Fear in the market place provides advantages for people who are willing to take researched calculated risk. A recent article in the Idaho Statesman by a national economist suggested purchase of Rental property as the best hedge against the coming inflationary cycle that will surely follow this deflationary cycle. Our market here in the Boise Valley in homes under $300k has bottomed out and is starting a slow comeback.

Many of my clients are under the false assumption that the stock market is going to rebound in a few years to 2007 levels. What you need to understand is in order to get back to where you were in 2007 the DOW will have to reach above 28,000. Stock in a normal market only averages 10% per year. Translation: 20 years of an average market to get back what you had in 2007!

By contrast Real Estate historically doubles every 10 years. And the biggest difference of all.....Stocks can go to ZERO....and many as you know have! They are not tangible assets. Real Estate on the other hand is tangible - underneath all is the land and it's not going anywhere. Even in a depression - people have to live somewhere - The other interesting facet is even as Real Estate values have swept through the ceiling and dropped to the bottom - RENTAL Prices have stayed within 10% over the last 20 years!

I'm not suggesting by any means that it is time to rush out and buy just any foreclosed property. That would be as foolish as it was in the boom years. What I am suggesting is avid dedication to looking for the gems in this depressed market and taking advantage of the opportunity before the inflationary cycle starts. Once the inflationary cycle starts it will be too late to advantage the market - Interest rates will increase to try and stifle the inflation, and property values will inflate and the cost of manufacture and fuel prices will drive everything over the top.

I realize you are thinking " why are we worried about inflation now in a deflating market?" Because we are bottoming out....and the US Govt. has just put the nation 5 Trillion dollars deeper in debt that we don't have the money to pay back!. The dollar is bound to deflate which equals Inflation. Inflation is not a question - it is a certainty - you can count on it - You can't get out of debt by borrowing more money - Unfortunately many of us can personally attest to this! - If it doesn't work for us - it won't work for the Government either.

Bottom Line: Do whatever it takes to take advantage of Bank Owned Properties that are currently 20%+ under valued. If you have to roll over your 401K plans do it - if you have other monies that are setting idle - move them into targeted Real Estate - NOW! Waiting is not an option - Waiting will be detrimental to your economic health! Please understand - not all Bank owned Properties are worth buying even at huge discount - we still have to be proactive and selective - that's why you have me - to show you the right path - the best choices - and to protect your investments - It is what I do 24/7-365 days a year! Like I said in my response in my latest blog:

At the end of the day - the bottom line is you are gambling either way. You can choose to gamble with your fear and frustration and do nothing - or you can gamble with your faith and hope and the best information available and go forward. We believe in.... and provide the latter - The choice is always up to you!

Dale Alverson CBB,CRP, ABR, e-PRO

43 Degrees North Real Estate www.43RE.com

35 year Career Realtor

20 year Certified Buyer Broker Designee

35+ years Representing Clients - not sales!

Free 1 Hour Consultation upon request

Direct cell 208-863-3093

www.teamboise.com
dale@teamboise.com
Toll Free 800-359-0855

Response to Frustrated Client re: Market Uncertainy

Dale Alverson (43 Degrees North Real Estate) — Wed, 04 Mar 2009 23:52:01 -0800

Comment from a client:

Sorry for not getting back with you, we have been kind of watching the

market and continue to see prices drop. We have decided just to wait.

I am just thankful that I have a nice house with equity. We will keep

you posted if things start to improve with time.Thanks for your help.

Sorry to see that the house we liked so much sold but that's good for

you and for the builder. It is a beautiful house and will make a

wonderful home for that lucky someone.

Mike

Response:

Mike,

I can certainly empathize with your feelings and sense of the market. With the Media's constant advertising of Gloom & Doom and the New President saying the word "crisis" 25 times during his address to Congress, it is a wonder anybody gets out of bed in the morning!

With that said I need to make you understand the dynamics of the actual situation we are in. 1st of all we need to analyze why the President appears so negative about the economy. He needs to sell the Stimulus package and the ONLY way anyone is going to sell the American Public on a 2 Trillion Stimulus Package and a 3.5 Trillion 2009 Budget, is to make the country believe that if we don't pass it , we are a doomed Nation. Once this legislation is approved and passed you will see a more positive note coming from Washington and the Media. ...and we will see what is going to appear like a start of a recovery.

We are entering into a Window of opportunity to get into your ideal home in the next 12 months before the start of massive inflation which will be the by-product of massive deficit spending.

So here is what I believe is current Reality of Real Estate in our regional area:

Home prices in the "Starter Home Market price range of $100k- $200k have bottomed out. Homes in the $250k - $350k range are nearly bottomed out and are still soft with negotiations still a reality. Homes above $350k are likely to continue to deflate as much of the National economy.

The Boise Valley while not immune to Recession is still one of the brighter spots economically due to it's make up of largely "Service Sector jobs" In other words our economy is not linked to one or two Mega Corporations but to many smaller Service Sector jobs. People don't move to Idaho for high wages and big corporate employment. The majority of people move to Idaho to escape the big city environment for a more normal and higher "quality of life". This has been our reason for growth in the past, and will certainly be our "Silver Lining"even more so in the future, as California's economy and liberal welfare state collapses around their shrinking ability to fund all of their liberal programs.

The result of these dynamics provides us a unique window of opportunity to take advantage of the current economic conditions: Your current home being in the lower price range will stand the best chance of selling for the least amount of discount. It also stands the best chance of selling now with the Stimulus Tax Refund being appropriated by Congress at this very moment. Your move -up home will never be built cheaper than it can be today. Building materials and contract labor are at 1990 pricing. Lot prices have been reduced by 30%-50%. The bottom line and the advantage for you is that New Construction prices are as low as they are going to get. To wait for market to improve will be counter productive, and when it does, the cost of New Construction due to inflation will certainly out pace the appreciation of your existing home. Waiting is a no win situation in our Boise Valley Economy.

Inflation is inevitable due to the massive creation of debt/money which our Government does not have, nor is our economy backed by Gold. Economists will all tell you inflation is coming no question. History will tell you that with inflation comes higher interest rates to try and control it. This is why I am telling you to take advantage of all of these temporary conditions while they are still available, before they disappear.

Today you can easily sell your home with the availability of low rates and Government Tax incentives for first time buyers. (a short term window)

Today you can easily purchase a "New" current "state of the art" home at yester- year price in a high quality area. (a short term window)

Today you can receive one of the lowest interest rates in the last 40 years. (a short term window)

Waiting is always an option, however it may turn out to be a poor option when confronted with the facts of this massive changing economy. Waiting to see the future is missing the present. Opportunity is always in the present. They say hind site is 20/20 and always easy. Foresight is for gamblers and risk takers and is always hard. Winners use hind sight for history to forecast the future - then take acceptable risks to take advantage of dis-advantaged situations.

As Professional Real Estate leaders with over 3 decades of experience, we do not have a crystal ball, however we are in the forefront - the trenches of the market - and we have the best view of the future. From this vantage point it is clear that the greatest time of opportunity is in the midst of a bottoming market - before the recovery.

At the end of the day - the bottom line is you are gambling either way. You can choose to gamble with your fear and frustration and do nothing - or you can gamble with your faith and hope and the best information available and go forward. We believe in and provide the latter - The choice is always up to you!

Dale Alverson43 Degrees North Real Estate

35 year Career Realtor

20 year Certified Buyer Broker Designee

35+ years Representing Clients - not sales!

Free 1 Hour Consultation upon request

Easy Fix for the Economy

Dale Alverson (43 Degrees North Real Estate) — Mon, 16 Feb 2009 10:27:12 -0800

It's Not Rocket Science-

Were now 2 Trillion dollars deeper in debt we still have no real mechanism in place to revive our mortally wounded economy. We are losing Trillions of dollars of National wealth. If the Nation were a human being, the doctor would say we are going to "bleed out" meaning death is very close and the answer that comes out of Washington is let's just keep the patient comfortable and throw a blanket over him so we don't see all the blood! Hey Washington, Band-aids don't stop arteries that have been severed!

The Real Estate Industry is the backbone of this Nation. When you see the Real Estate Industry in trouble, it is only a short time until the entire Nation will succumb to even a greater illness. Capitalism only works with continued growth. What isn't growing is certainly dying! These are the facts - This is not a myth.

It seems Washington can only respond to their own personal economy and that is fixing the Mega Banks that supply their personal lifeline through huge contributions to their campaign funds, so they pass legislation pouring massive amounts of money into the Banks who caused this mess in the first place. The Banks in turn hoard the money instead of making it available to fuel the economy.

EASY FIX Banks & Automobile Manufactures:

Let the Banks fall on their own sword! LET the Car Companies do the same! Provide a true $5000 stimulus for every household that invests in a hybrid auto that gets 40+ miles per gallon. Provide a LOAN to the auto makers for the rapid development of automobiles to meet the standard.

Fast Fix for Real Estate:

Provide Government Financing at 3.75% 30 year Fixed rate for EVERYONE to purchase owner occupied Real Estate using Realistic qualification guidelines. Provide1st time home buyers 100% financing on starter housing. Provide 2.75% Financing for investors to buy Foreclosed property again using Realistic Qualification Guidelines with no limit to number of properties properties purchased.

The economy would flourish within the year implemented! All of the following business's associated with Auto Mfg & Home Building would quit firing and start re-hiring people; Lumber,Steel,Glass,sheet rock,Carpet,Paint,Plumbing,Electrical,Concrete,Asphalt,Appliances,Windows,Roofing,Cabinets,Wire,Insulation,Siding,Electronics,etc,etc - the line is nearly endless.

Capitalism is fueled by PERCEPTION not Reality. Once people see jobs diminishing and foreclosures, fueled by the National Media constant negative news, Growth stumbles to a halt, people stop spending and start hoarding. Growth dies and with it the "American Dream" built on the premise of Capitalism.

If we are destined to have the Government step in to save US with our own borrowed money, then let's at least make sure that they spend our borrowed money where it will actually stimulate our economy instead of bailouts for the Fat Cats who buy the Politicians in Washington.

Enough is Enough - We the People need to stand up and demand sanity and good stewardship from our Politicians

If not us - then Who? If not now - then When?

Dale Alverson

43 Degrees North Real Estate

www.teamboise.com

Foreclosures Versus Short Sales - Boise Idaho

Dale Alverson (43 Degrees North Real Estate) — Thu, 29 Jan 2009 17:27:50 -0800

Foreclosure Versus Short Sales - What's the difference for Buyers?

This is a common question that I am often asked. The simple answer is a foreclosure is a property that title has been taken back by the lender, and is now Bank or Lender owned. The previous owner has no connection to the property. The lender now becomes the sole owner of the property and retains the sole discretion as to the offer amount they are willing to accept. There is NO EMOTION. It all comes down to the offer they have in front of them today, and if they believe they can get a better offer by waiting and incurring continuing costs in maintenance & taxes. Generally they will respond much quicker than will a short sale that can take 6-8 weeks to hear back. The other difference is in how Bank or Lender owned property is marketed. In Bank owned property, a Broker Price opinion is ordered and or an appraisal. Once those are received a sales price is established and the home is marketed at that price. If you make a full price offer you can be assured that you can actually purchase the home at the listed price.

By comparison, a short sale is a property that is delinquent and is danger of a foreclosure, however the deed has not yet been returned to the lender, and the owner is still in title. The current owner in title has made a request to the lender to take less tha what is owed in lieu of taking the home into foreclosure which can be a lengthy process taking 6 months to a year to achieve. The lender will agree in most cases to CONSIDER a short sale however will not commit to a sales price until they receive an offer and have received a Broker Price Opinion. They will in most cases not order the BPO until they receive an offer to purchase. Then while the potential buyer waits for the BPO they continue to take offers and the whole process turns into a type of silent auction where the buyers wait to hear. Often there are several offers on the property as the Listing Realtor tends to market the property at sub normal market evaluations thereby generating many offers. In the end , the best offers are tendered 1st and the rest of the potential buyers wait 6-8 weeks only to find out they did not get their offer accepted. Usually after 1-3 failed attempts, most potential buyers become discouraged at the inability to generate a home purchase and end up looking for real homes that they can actually purchase.

"Team Boise" at 43 Degrees North Real Estate, does not recommend or encourage buyers to consider short sales as an acceptable way to purchase Primary Housing. Foreclosures are much easier to purchase and negotiate than short sales, and generally can produce better results with far less grief and confusion. We only recommend Short Sales as an option for Investors who are willing to write multiple offers over a extended period of time and pick up a few homes out of several offers. Nationwide only about 1% of Short Sale offers result in closing.

Dale Alverson is the Director of Relocation at 43 Degrees North Real Estate and is Idaho' only Certified Buyer Broker designee. Please email or call Dale direct at 208-863-3093 for answers to your Real Estate Questions and concerns about Boise and the surrounding towns of Meridian,Eagle,Star & Kuna.

Boise Idaho Short Sales

Dale Alverson (43 Degrees North Real Estate) — Mon, 19 Jan 2009 17:16:59 -0800

Short Sales seems to be the New BUZZ Word in Real Estate now days. It seems every client and everyone I run into wants to talk about what's the deal with "Short Sales".

Are they all that GREAT? Well Yes sometimes they can be, however most times they are a nightmare... more on this later-

Let's start with a definition: When a Homeowner is unable to continue to make payments and unable to sell their home they can request their lender to consider a "short sale". If the Homeowner is currently behind on their mortgage, the lender may elect to grant a "short sale" (sometimes also called a "Deed in lieu of") rather than wait for the untimely process and expense of a full foreclosure. In a typical short sale a lender may agree to take less than what is owed on the mortgage if they deem that the home is no longer worth what is owed. The homeowner gets out with nothing except bad credit for 2-3 years versus 7 years of bad credit with a full foreclosure.

So when do short sales work best for the buyer? They work well on higher price properties where there are very few buyers. In these cases because so few offers come in, lenders are more willing to give responses while they have a hot buyer in hand, as the next buyer can be a long way off.

On average, or mid priced homes, it is a different story entirely. Buyers think they are making offers. In reality they are making SEALED BIDS! I call them bids instead of offers because in normal Real Estate, offers have to be responded to within a short time window. In short sales in the mid range where the bulk of buyers are found, the listing company will leave the listing as an open listing until they receive a response - usually 5-8 weeks! During that period of time the lender will hope to collect as many offers as possible so they can take or counter the best of those offers. The end result is most normal home buyers trying to purchase a personal home will not get their offers accepted and usually no chance to receive a counter, and will waste precious weeks or months without an acceptance on their offer. I know of buyers who have tried 3 or 4 times with the same results and finally give up and refuse to write any more offers on "short sales".

In my Buyer Representation & Relocation business, I tell my clients up front that if they are serious about buying a home in the next 30 - 60 days (while rates are down) to FORGET "SHORT SALES" COMPLETELY!, and instead let me work with motivated sellers that will give us responses. Generally we have better homes as investment choices, and can often negotiate as well or better than short sales.

The exception is Investors who have little care about which house they get as long as they can steal it and the end numbers support the rent. For these Investors who may make multiple offers on 20 + properties and get 1 or 2 at a good price, short sales can provide some added leverage.

Short Sales have another downside. Most short sales happen because the Homeowner is unable to sell the property through normal means. Usually this is due to poor choices when they purchased - bad locations - floor plans - paying too much when purchased - etc. An old saying is: the money you make or the money you lose happens the day you purchase not the day you sell. Many "short sale " homes are not good investments even at the reduced purchase price for the same reasons. During the Rush Days of 2005 - 2006 there were literally caravans of investors driving through subdivisions making offers indiscriminantly on homes without even evaluating their merits. Many of the short sales and foreclosures on the market today are from some of those investors.

IN GENERAL- I would say forget about short sales as a viable consideration for a home purchase. They require far more expertise than is available to an average person trying to purchase their next home.

IN SPECIFIC - For those that still think the rewards justify the risk and annoyance, I would recommend you make sure you have a very qualified "Buyers Agent loyal to your interests only.

****Note for everyone**** Buying a home in today's market is only for the educated and informed buyers. Obsolescence in homes in the Boise Valley Real Estate Market is happening at an alarming rate as the few builder still building homes, have upgraded their homes to the point that most homes built even a year ago will suffer from obsolescence. Remember the money you make happens when you buy not when you sell. There are GREAT BUYS & Great Values to be had in Boise Valley Real Estate, however you need to be educated as to what makes a home a Great Value and it is NEVER just about the PRICE!

When I am working with my clients, I use a scorecard to evaluate every home that I show my clients. The homes must out perform in 4 categories in order for me to recommend purchase. Price is only one category. Price is changeable - Location and floor plan are not -

Real Estate is an investment and should not be purely an emotional purchase. At it's best it is a dance and balance between the two powers of Emotion & Logical Choices.

There are nearly 4000 homes for sale in the Boise Valley at this time. Out of the 4000 there may be only few hundred that would qualify on my scorecard as Excellent Investments.

Beware of "Short-Sale-amania" Just because it is a Buzz Word and everone is talking about it, does not justify jumping in un-informed. Short Sales have their place and they may work well for a few, but they certainly are not a panacea for the masses.

Dale Alverson

Certified Buyer's Agent (only one in Idaho)

Certified Relocation Professional (one of three in Idaho)

43 Degrees North Real Estate - Director of Relocation

Available to the public for Free Consultation by appointment.

35+ years Representing Clients - Not Sales! 2028-863-3093

Boise Real Estate Market 2009

Dale Alverson (43 Degrees North Real Estate) — Mon, 19 Jan 2009 12:52:16 -0800

Boise Real Estate Market - Half Full or Half Empty

OK, OK, I know "the Market is in the toilet" and the sky is falling & Blah Blah Blah-

Let's talk Reality V/S Realty

Boise Valley Inventory in 2009 is Down 10% in numbers and 25%+ in price from 2008 at the same time

Yes the "Media" will leave you to believe that - DOOMSDAY HAS ARRIVED - However the truth of the matter is that while the Boise Idaho market is indeed off from the anomaly years of 2004-2006, It is not that far off from the pre 2004 Boise Idaho market, which everyone agreed upon was a "Good Market" just 5 years ago. The constant onslaught of the media expounding on the negative actually makes the market worse than it is in Reality.

The truth of the matter is the Boise Idaho Valley area is still growing, which translates into lower than National unemployment rate, and is one of the more stable economic environments in the country.

It is quite true that the Market is in general, a definitely abnormal over-supply condition. It is also true however that the inventory has been reduced by roughly 10% in the Boise Valley Real Estate market in the last 12 months. Unfortunately the "Media" does not focus on the positive improvement because they believe it doesn't sell. They know from past history that negative news may not be "good news" (however as unfortunate it may be), it does sell newspapers and it does increase Television viewership. Hence the negative news media does indeed control or at the least heavily influence the public's decision to purchase or not to purchase, based on the belief that what they hear and see is true. Unfortunately this influence is felt not only in the Boise Idaho and Valley Real Estate Markets - it ripples out through the rest of the discretionary spending market to a similar degree, causing the entire local economy to falter.

The Reality of the Boise Market is that it is absolutely the "BEST" Buyer's Market that we have experienced in my 35+ year career! The selection is fabulous by any standard - The interest Rates at an All Time Low 4.5% range Fixed Rate - and last but not least almost everyone is willing to negotiate a lower price by 5%-20%+ .... oh and did I mention concessions - well what do you want? help with closing costs? All of your closing costs? Refrigerator? Washer & Dryer? furniture? the car in the driveway? the dog? Name it and you have a very good chance of getting it!.... What is not to love about this Boise Valley Real Estate Market? Oh yea that's right ... "the Media" thing about the sky is falling ...blah ...blah....blah

The other significant fact being overlooked by the media and the media followship is the impact of the very unusual exuberant Winter as well as the National Economic Bad News contributing to the Reality of Sellers feelings of desperation and depression about the ability to sell their homes. Couple the above mentioned Real Estate Market conditions with Seller desperation/depression and you get the "Best Purchase Power" that you may witness in the next few decades. Again have you read/heard anything about this in the Media? No of course not. By the time you hear about it in the media, you will have already missed a lot of the gain and profit that are sure to come from the results of the after life return of the Boise Valley Real Estate Market.

Now let's address the unfortunate sellers predicament ...... or is it? Again what will the media tell you? Don't sell unless you absolutely have to - It's a terrible time to sell - Short Sales climbing - Foreclosures - Prices dropping with no end in sight - the sky is falling - blah blah - blah Let's again turn to REALITY - If you are a move up buyer and say you own a $200,000 home and it is time to purchase a larger home because your family has grown. If you listen to the "Media" you will stay put because you can't bear to lose all that money in a "Bad Real Estate Market, so you do nothing .....but lose more! How you ask? OK lets look at facts: The more expensive the home - the larger the discount. $200,000 homes are currently discounting marginally by comparison at about 5% or less than asking price. - say $5,000 - $10,000 off. Now let's look at $400,000 homes which are currently discounting 5% - 8% - say $20,000 - $32,000 off. So what if you give up $10,000 - if you get $20,000 - $30,000 off on your subsequent purchase? OK .. so let's say you have to sell the $400,000 house and give up $30,000 - that's a lot of money unless of course you are going to buy a $600,000 home for $500,000 - $550,000 Compare a savings of $100,000 to a loss of $30,000. If someone told you to sell $100,000 of bad stock for $70,000 you would probably not do it ...unless of course you knew the $70,000 could buy you $150,000 worth of more valuable stock. In other words - It's all Relative -

So who should not sell Boise Valley Real Estate? Anyone who is in a move down market is going to suffer or anyone who is not going to repurchase at a higher value should probably not sell unless they have to or can't wait for 12-18 months for the return of the normal Real Estate Market.

The opportunity to make a lot of money in Boise Idaho and Boise Valley Real Estate is here now today! Within the next 12 months there will be countless opportunities to invest in your next home ... at yester-year pricing... Pre - 2004 Pricing in many cases... and at phenomenal interest rates with enormous selection for those willing to swim upstream against the media flow, and step out and take advantage of a very unusual and temporary condition in the Boise Market.

Dale Alverson is a 35-year career Realtor and is the Relocation Director at 43 Degrees North Real Estate. He is Idaho's 1^st and only Certified Buyer's Agent as well as one of three Certified Relocation Professionals in the Valley.

If you have questions or comments about your options in 2009 in Boise Real Estate (whether to buy, sell, remodel, or just stay put and do nothing) please feel free to contact Dale at your convenience for counsel and a free consultation.

Best wishes from Team Boise for 2009 - Happy Real Estate

43 Degrees North Real Estate Dale Alverson - direct cell 863-3093

35+ years representing Clients not Sales!

Finally Good News!

Dale Alverson (43 Degrees North Real Estate) — Sun, 18 Jan 2009 14:08:18 -0800

Bad News V/S Good News -
Sometimes I wonder if someone published a newspaper with just Good News - Would anybody buy it? Apparently not because all of the media focus is always on Bad News.

As a tribute to the New Year, I would like to focus on the Good News in Boise Valley Real Estate. The numbers suggest we are near a post 2004 Real Estate Market in terms of monthly supply of homes on the market. Our supply for average price - size homes 1500 - 2500 sq ft (which comprise the bulk of sales), ranges from a 6 months supply in East Boise to 9 months supply in West Boise. Eagle has about a 12 month supply, while Meridian ranges from 10 months to 15 months depending whether you are South of the Freeway or North of the Freeway.

While these numbers are becoming close to those of the Post 2004 market in terms of supply, the silver lining is in terms of seller motivation caused by the perception of the media in general. The result is a much stronger "Buyers Market" than we had post 2004.

Another interesting statistic is that in 2004 it took about 21% of an average families income to purchase an average price home. By 2006 it took 38% of a families income to purchase an average home in the Boise Metro area. Today that figure is down below the 2003 number to about 19% of an average families income to purchase an average home. This is incredible GOOD NEWS! Not only is the ratio down to the post 2004 numbers - the ability to discount is much higher than in the 2004 market when it was a Seller's Market. Today is definitely a Strong Buyers Market.

In short it is easier today to buy a home in the Boise Valley at greater Discount with lower interest rates than in 2004 when we had a Great Market!

The only problem today is Perception which is a buyer’s ally and a seller's enemy. Simple Translation: The time to purchase Real Estate here locally in our Boise Market is NOW!

For the conservatives who wait to hear it in the Media before considering a home purchase be advised that you will spend more and get less both in terms of Home Value for your dollar and in loss of interest rates that can not sustain at today's sub 4.5% levels. A 1% difference in interest rate translates to over $23,000 in purchase power - Think about it - a 6 month delay could end up costing a conservative thinking rational person $5000 - $10,000 in purchase negotiations alone + $23,000 in Interest rate purchase power or over $28,000 - $33,000 by waiting to hear from the media that the local Market has indeed bottomed out.

Let's look at my latest two examples of Purchase power for two of my clients the first week in January 2009:
Client A purchased a New Model Home in an upscale SW Boise Community (Tuscany) 2736 SF with all upgrades (Slab Granite - Tons of Hardwood - completely landscaped, fenced, all window covering, all appliances including pedestal washer & dryer, & surrounded by common area on 2 sides) for under $300,000 with a 4.5% 30 year fixed loan. Anybody you know in the last 5 years get a deal like that? Me neither!

Client B was looking for an average family home 2000+ sq. ft. for $200k - $240k with hopefully 4 bedrooms. We looked at over 15 homes we had previously screened from 75 possibilities and came up with an unusual 2500 sq.ft. home in West Boise in a good sub. It had a sub standard floor plan but it did fit their needs with an extra 5th bedroom and bonus room that they had not expected to be able to afford. The asking price was $249k and we offered $220k. The seller was not able to accommodate our price so we looked at a build job and were able to build a 2743 sq.ft. home with $15000 worth of upgrades for $225,000 including a large lot with 5 bedrooms + a Den + a Bonus Room and a 3 car garage....and a 4.65% loan with ONLY 1.5% down. So tell me again how bad times are in the Boise Valley! I guess I'm not seeing it. but of course I'm not getting my information from the Media - I'm out creating the Good News!

Call today and pick yourself up some GOOD NEWS!

35+ years Representing Clients - not Sales!

Dale Alverson
Certified Buyer Agent
Relocation Director
43 Degrees North Real Estate
863-3093 800-359-0855

Timing the Boise Valley Real Estate Market

Dale Alverson (43 Degrees North Real Estate) — Sat, 17 Jan 2009 23:29:45 -0800

TIME TO INVEST in Boise Valley Real Estate ?????When would you say is the best time to invest? at the bottom of the market or at the top of the market?

The question is obvious, however what is not obvious is when - where is the bottom.

When & Where are the key components separating the smart investors from the herd. We all understand the "herd" principle - wait until everyone is doing it and jump in right? That would be those that jumped into the market in 2006 -2007

For those of you that are waiting for the return of the 2004-2006 market conditions that propelled 20% - 30% + appreciation per year - forget it - not here - not now and probably not again in your lifetime. That was what is called an anomaly - an abnormal set of conditions that are not likely to prevail again.

OK so now what?

Let's check back in on Reality - From 1982 - 2002 Real Estate in the Boise Valley appreciated quite consistently at around 3% - 5% per year. This meant that if you owned a $150,000 home you were receiving added value at the rate of about $4,500 per year more than your neighbor who was renting. If you were the landlord, your renters were paying off your mortgage and providing you with a $4,000 + savings account that was probably more than you could save from your paycheck.

Then came the "herd" and everything went crazy and now of course the aftermath.

So now let's get back to that question about when and where is the bottom of the market? Wouldn't it be nice to invest at the bottom instead of the middle or top?

Those of you that have been listening to my advice about the Boise valley Real Estate over the past several years may remember that I have constantly advised you that SE & East Boise properties have always been the highest appreciating properties during times of appreciation and conversely during the rare times of depreciation have seen the least depreciation. This is not an accident or an anomaly; it is simply a result of supply & demand.

So Now you have one of the answers to "Where" ..now about when .. the answer: the 1st quarter of 2009.

Now let's talk about HOW

1. It is probably the absolute "Best" time to consider selling your existing home at a discount and buying your move up home at a greater discount. + pick up a better location with enhanced appreciation and less commute ( consider gas in the future at $5 a gallon in this equation and calculate additional savings)

2. This would be a great time to consider moving your Retirement account into a "self directed Real Estate Trust" and investing in prime locations with stable conditions. If you don't have enough money in your retirement account to purchase outright you can use your 401 K or other retirement funds for a 30% down payment and let the lessee make your payments.

When considering Real Estate investment you should plan on 20% - 30% down for positive cash flow in the Boise Valley unless you need negative cash flow for tax purposes.

This is probably the best "Buyers" Market you will see - don't let the media hype deter you from making sound decisions. I am certainly not advocating that you can go out there and just jump into any short sale or foreclosure because it's a "steal" It is a great time to make careful and extremely selective choices - It is not a slam dunk by any measure, and I certainly do not recommend any purchase without carefully analyzing your own unique situation and tax and investment strategy.

Dale Alverson is a career Realtor with43 Degrees North Real estate, A Certified Buyers Agent, an Accredited Buyer Representative with 35+ years representing client's interests - not sales!

Dale can be reached at 208-863-3093