Renters Watch Out For Scams
Renters looking for housing can be victims of scammers. One of my clients recently called me about a home for rent in Boise, advertised on Trulia. I've heard of this on Craigslist and other free posting sites as well. Most scammers won't pay for advertising and use free sites.
Usually the "landlord", who doesn't really own the home, claims to be out of the area with no local representative- your first clue. This landlord says he'll send you the keys, once you send him a deposit. He even goes through the trouble to send you an application, to make it look real.
Here are some steps you can take to protect yourself from the "home for rent scam":
- Obviously, be wary of long-distance transactions done by e-mail or texting. Insist on face-to-face meeting.
- Ask for identification and proof of ownership or authority.
- Verify ownership through public records- you can do this online through assessor or ask me for help.
- Insist on walk-through of property prior to application- scammers won't have access.
- Never give deposits or application fees without getting a receipt.
- Be wary of landlords who will give access with deposit only- no real landlord will let you move in without paying deposits and first month's rent in advance.
If it sounds too good to be true.... be careful. The rent was way below market on this one- another clue. This kind of scam can also be run on homes for sale, not listed by Realtors.
Posted at 01:50PM Nov 21, 2011 by Dan Rowe in Real Estate | Comments[0]
Freddie Mac REO Winter Sale
As primarily a buyer's agent, I look forward to every Idaho winter/holiday season slow-down and the resulting bargain opportunities for my homebuyers and investors. Over the next 3 months, you face the least competition of the year AND interest rates near 60-year lows AND home prices at 8-year lows. On Freddie Mac REOs, it gets even better!
Freddie Mac has just announced a Winter Sale Promotion for owner-occupant buyers: Make an intial offer on a Freddie Mac repo between Nov 15th and Jan 31st and the price includes 3% to cover typical buyer closing costs and an expensive 2-year home warranty. This is not really a new promotion, as Freddie Mac has been doing this for a couple of years, renewing and now renaming the program periodically.
Freddie Mac has 30 homes available today in Ada County and 23 in Canyon County, according to the homesteps.com website. I link you to all local foreclosed homes for sale on my website- see my Bank Repos and HUD Homes articles.
Sorry investors- no special incentives for you. Just bargain prices and cheap money. Also, both Fannie Mae and Freddie Mac won't take investor offers for the first 15 days on new listings. Ask me for help finding available properties for investment.
Posted at 01:18PM Nov 16, 2011 by Dan Rowe in Real Estate | Comments[0]
Home Buying Myths
I consider today's home buyers to be very well educated about real estate, but a survey of a 1,000 potential home buyers by Zillow really surprised me. I must admit, things are more complicated today, but the survey results make me think Realtors are not doing a good enough job educating the public.
Appreciation: 42% of buyers surveyed believe homes will appreciate 7% per year. In reality, the normal range is 2-5%.
Mortgage Insurance: 41% of buyers think they must buy private mortgage insurance, regardless of the down payment. Really, lenders require it only with less than 20% down payment. FHA charges 1.15% per year on the loan amount with 3.5% down payment. Side note: A mortgage insurance premium is charged up front and most people finance it into their loan. VA charges a similar funding fee, but no monthly insurance even with zero down.
Appraisals: 56% of buyers said the purpose of the appraisal was to determine condition of the home. Wrong! Appraisers provide independent verification of the value and ensure that the home meets minimum property standards for the buyer's loan program. A private home inspection at buyer's expense is essential to identify property defects.
Home owner's Insurance: 37% of home buyers said buying insurance is optional. Wow! If you're getting a loan, home owner's insurance is required, because the home is collateral for the loan. If you let the insurance lapse, they make you buy "after the fact" insurance that costs much more. Even if you own it free and clear, it would be absolutely crazy to not buy insurance at a cost of approx. $3 per year per thousand in value.
When do you own it? 47% of buyers surveyed said a buyer owns the home once a purchase contract is signed. Nope, not until the deal is closed, funded and recorded in your name- until then the seller owns and must maintain the property. It is possible to sell your contractual interest in the property, but most contracts prohibit assigning or otherwise selling the contract prior to closing in today's market.
Source: Zillow Inc Oct 28,2011
Posted at 10:22AM Nov 10, 2011 by Dan Rowe in Real Estate | Comments[0]
Realtor Technology- Don't Search For a Home Without It.
I am your local access point to the best database of homes and property for sale in the entire world, the MLS. The Boise area is served by the Intermountain MLS, covering SW Idaho. But using the best database is only part of the equation- the other part is your search tools.
How do you know if it is a short sale? In the Boise area, nearly a 3rd of all homes listed for sale are short sales. If you don't want to gamble on interest rates rising while you wait months, or have a definite time-frame to move, such as a lease expiring or a home selling, a short sale may not work for you. I can filter out those short sales and keep you from wasting time.
How do you know the homes have all your must-have features? Maybe you need a single-level or at least a main-level master bedroom, a certain school district, or that 3-car garage? I can help you there. I can save a MLS search for you and set my system to send you an e-mail instantly whenever a home that meets your criteria is listed, reduced, changed or comes back on the market. Or once a day, if you you prefer.
How do you keep track of which listings you've already considered? Unless you've got a photographic memory, I can help you there. Through our local MLS, I can set you up with your own password-protected website dedicated to your search that allows you to keep track of your favorites, possible and rejected listings, and shows them on a map.
My search technology combined with the search website takes the work out of searching for homes, so you can spend your time actually looking at homes that work for you.
Contact me today to get started searching for your next home or investment.
Dan Rowe ABR CRS GRI, Broker (208) 866-3481 danrowe@cableone.net
Posted at 01:05PM Oct 19, 2011 by Dan Rowe in Real Estate | Comments[0]
Listings from MLS Data Most Accurate
Where is the most accurate internet information on homes for sale in the Boise Idaho area?
You need to know about a study completed by Trulia earlier this year, comparing accuracy of listing prices and status from various internet sources.
They found that 3rd-party syndicators of listing data, not coming directly from an MLS, had a 21.4% error rate regarding the list price or status. This problem is attributed to real estate professionals, doing their best to get exposure for their clients' homes, posting data on various sites and then not keeping them updated. (All licensed brokers and agents in Idaho are required to keep all advertsing updated and this is enforced by the Idaho Real Estate Commission.)
Also, 3rd-party re-syndicators of MLS data showed a 10.2% error rate. Direct feeds from brokers posted a 5.6% error rate, and direct feeds from franchises showed a 3.9% error rate.
Look for the MLS Logo to ensure the highest quality of information. Since our local MLS here in the Boise Idaho area requires brokers to update listing changes within 3 days, it is impossible reach 100% accuracy. Knowing this, when you call me for a showing on a home or property for sale, I must first call the listing agent to verify the status.
Souces: REaltor Magazine 5/10/11 "Listing Data Not From MLS Has More Errors", Inman News 5/9/11 "Trulia Higher Error Rate in Non-MLS Sources of Real Estate Listing Data"
Posted at 01:12PM Oct 17, 2011 by Dan Rowe in Real Estate | Comments[0]
Listing Prices Rising in Boise
Realtor.com just reported on the top 15 cities with highest percentage of year-over-year increases in average list prices and, based on August data, Boise Idaho is 13th on the list.
The national average list price of a home is $320,325 now up 2.36% year-over-year.
Boise City is showing an average list price of $212,588 up 10.43%! More evidence that Idaho is ahead of much of the nation on the road to a housing market recovery.
If you're curious, the best performing market was Miami Florida, up 27.4% with an average list price of $640,332. Homes look very affodable in Boise Idaho!
Posted at 11:20AM Oct 15, 2011 by Dan Rowe in Real Estate | Comments[0]
CO2 Danger in Your Home From Your Car
Yesterday, while meeting the gas company guy at a repossessed home to turn on the gas for a buyer's inspection, I learned something alarming. If you have a forced air furnace located in the garage, and many homes do, your furnace could pump deadly carbon dioxide(CO2) from your car exhaust into your home.
There are 3 things you can do to prevent this:
- Obviously- back your car out to warm it up or at least open the garage door.
- Have your furnace checked by a pro to ensure ductwork is airtight. A cracked heat exchanger is also a CO2 danger.
- Install a CO2 alarm in your home.
Just something I learned in my travels- be safe.
Posted at 11:56AM Oct 14, 2011 by Dan Rowe in General | Comments[0]
Idaho Property Taxes- Commission Sets 2012 Homeowner's Exemption
The Idaho State Tax Commission has reduced the maximum homeowner's exemption for 2012. For 2011, the maximum exemption is $92,040 and will decrease to $83,974 in 2012. The decrease reflects falling Idaho housing prices in 2010 and the first half of 2011.
By Idaho law, the exemption ceiling is tied to the Idaho House Price Index calculated by the Federal Housing Finance Agency. Idaho provides a partial property tax exemption for qualified homeowners on their primary residence and up to one acre of land. Idaho law exempts up to 50% of the assessed value from taxes, up to the annual limit. Those with home values under $167,948 will not be affected, since the exemption ceiling is half or less of the value.
Some History- Idaho's homeowner exemption began in 1980 at a maximum of $10,000 and remained unchanged until 1983, when it was raised to $50,000 by voter initiative. In 2006, the Idaho Legislature increased the exemption to $75,000 and tied future limits to the index.
To make things simple for my buyers in Ada County, I estimate property taxes on homes with the exemption at 1% of the value per year. On non-owner-occupied homes, I use 1.8% per year. This only a general rule of thumb, but comes close, so my buyers know what to expect. Canyon County property tax rates seem to be higher.
Source: Idaho State Tax Commission- Oct 3rd, 2011 http://tax.idaho.gov/n-feed.cfm?idd=250
Posted at 11:58AM Oct 13, 2011 by Dan Rowe in General | Comments[0]
FHA Loans Will Soon Cost More
If you're looking at buying a home this spring using an FHA loan, you might want to hurry to get your application in. Barb Perry at Watersone Mortgage just gave me a head's up on this.
If you have not been assigned an FHA case number before April 18th, your monthly payment will be higher due to an increase in the required monthly mortgage insurance. For minimum down payment loans (3.5%), the rate will increase by a quarter of a percent, from 0.9% annual to 1.15% annual, based on the loan amount. On a loan amount of $100,000 this would add $250 per year to your payments and could really add up over the long term.
There are other reasons to buy now in the Boise ID area- home prices are beyond 6-year lows and mortgage rates are still near record lows. Also, the number of distressed owners is dropping, which means recovery is under way- now is the time to buy low.
Contact me today to get started on the path to home ownership. The seller pays me to put my 20 years experience to work for you.
Dan Rowe ABR CRS GRI, Broker of Dan Rowe Realty
(208) 866-3481 www.repomandan.com
Posted at 01:53PM Feb 26, 2011 by Dan Rowe in Real Estate | Comments[0]
Are you in a flood zone now?
Even if you are not in a flood zone now, you could wake up one day to find that you are and must pay flood insurance.
Did you know that FEMA (Federal Emergency Management Agency) has been remapping floodplains all over the US for 8 years? And FEMA is only 2/3rds of the way through the project, taking into account changes caused by development and natural processes.
Should your home be declared in a flood plain, your lender will require the insurance, which can cost hundreds to thousands per year. Even if not required by a lender, you'd be crazy not to have it.
You can look up the FEMA flood maps for free. If you are in or close to a flood zone, you should check it out.
There are many flood zones in the Boise area that are not near the Boise River- near the foothills where storm run-off may occur or around the creek running through Meridian. In my 20 years selling homes, I've been surprised a couple of times when the lender said we needed flood insurance.
Posted at 03:44PM Feb 16, 2011 by Dan Rowe in Real Estate | Comments[0]
Mold in my Boise Rental House
It's every landlord's nightmare. My renter called last month and said he thinks we have mold. I could find no visible signs without tearing into walls and ceilings, so I called in my mold expert, Herb Jensen at ServPro in Boise. He tested the air with specialized equipment upstairs, downstairs and outside for a control. The air was super clean downstairs, but the level of spores in the upstairs bonus room was many times the outside number. I had a mold problem.
I set out to find the mold by removing the ceiling where the roof had leaked. Nothing. I removed all the insulation and followed the path of the water down the rafters to the outside wall. After removing the drywall and insulation behind the closets, I found it! Several square feet of wood that looks burnt and black mostly on the underside of the roof sheeting near the bottom. There goes the roof.
Now half the roof is gone, the inside walls gutted down to the studs, even part of the floor to be safe. Since the dormers on the roof were not built to code, I must rebuild the entire rafter system with a central beam. Welcome to my nightmare. A small amount of water and a lack of proper ventilation in the attic was the perfect set-up for mold. A former owner had covered the overhangs and existing vents with metal siding!
All this and I haven't gotten to the mold remediation yet- stay tuned for updates.
Posted at 11:52AM Aug 09, 2010 by Dan Rowe in Real Estate | Comments[0]
Rents Rising As Vacancies Fall
There is a bright side to the current real estate malaise for Boise Idaho investors who own or are considering investing in rental property. The Wall Street Journal reported on July 9th that the national vacancy rate for apartments has fallen 8 percent from the first quarter to 7.8 percent at the end of June. Rents rose 0.7 percent from April to June, the largest quarterly gain in two years.
Single-family homes feature lower vacancy rates than apartments- local vacancy rates are difficult to find, but I would guess in the 5-6 percent range for single-family homes. When analyzing cash flow, I always estimate 8 percent annual vacancy for my investors (equals 1 month per year) and is a safe number for affordable homes in the Boise Idaho area.
Idaho is also experiencing the falling home ownership rate as fewer buyers can qualify. And few investors are entering the market with tougher lending standards and larger down payments required, keeping the supply of homes for rent down. These conditions should cause lower vacancies and upward pressure on rents for all types of rental property.
My advice- lock in those record low rates now and prosper in the future with postiive cash flow. Current owners should always be looking to raise rents. Research your competition, start high- you can always lower it, add rent increases to your long term leases, and make improvements that would merit higher rent. Higher property taxes is always a good reason to notch up the rent.
Dan Rowe ABR CRS GRI, Broker of Dan Rowe Realty in Boise Idaho (208) 866-3481
Posted at 10:39AM Jul 14, 2010 by Dan Rowe in Real Estate | Comments[0]
July 2010- Fantastic Buyer's Market in Boise Idaho
In my 20 years in real estate, I've never seen a better time to buy homes and real estate investments in the Boise Idaho area. I'm not just saying that because I want to sell you a home- I would be snapping up every bargain I could get with positive cash flow, and there are plenty.
Median home prices are at 5-year lows. The discounts off market are huge with 1 in 4 homes listed subject to short sale and nearly 11% of homes listed are government or bank-owned. Interest rates are at once in a lifetime 40-50 year lows.
On top of all those great reasons to buy homes, your competition has dwindled drastically. The Mortgage Bankers Association is reporting that purchase applications fell 15% in June and are 30% below April's number, when the tax credit expired. The number of buyers dropping by a third will surely help home buyers and investors negotiate even better bargains.
Contact Repoman for the best buys in Boise Idaho real estate!
Dan Rowe ABR CRS GRI, Broker of Dan Rowe Realty in Boise Idaho (208) 866-3481
Posted at 11:03AM Jul 08, 2010 by Dan Rowe in Real Estate | Comments[0]
Home Buyer Tax Credit Not Over For Military Serving Overseas
Members of the military who served at least 90 days overseas between Dec 31, 2008 and May 1, 2010 have an extra year to get the home buyer tax credit. That's up to $8,000 for first-time buyers, defined as not owned in the last 3 years, and up to $6500 for replacing a primary residence owned for 5 of the last 8 years. There are income limitations to qualify, but most will.
To take advantage of this program, home buyers must have an accepted contract on a primary residence prior to April 30, 2011 and close by June 30. If you know anyone who might qualify, please let them know.
Have them call me and I'll show my appreciation for their service by paying for a 1-year home warranty ($350 value) at closing for those who hire me as their buyer's rep.
Dan Rowe ABR CRS GRI, Broker of Dan Rowe Realty in Boise Idaho (208) 866-3481
Posted at 12:39PM Jun 28, 2010 by Dan Rowe in Real Estate | Comments[0]
Boise Idaho Short Sales- My Biggest Challenge
One of my biggest challenges today is educating my buyers on searching for homes on the internet and short sales.
The internet is a wonderful tool for searching homes for sale. However, the ultimate source of homes for sale in Boise Idaho or anywhere in the US is the MLS (Multiple Listing Service) run by Realtors. This database cannot be matched for accuracy or completeness anywhere. If the property is listed by a Realtor, then it is listed in the MLS and at the fingertips of every Realtor.
Today, I have the technology to set a search for my buyer and send instant e-mails on any new or reduced listing that match their criteria. This means, if you keep checking your e-mail, you never miss any. However, I usually filter out the short sales. This is impossible for a buyer searching on their own because many listings don't disclose it in the public remarks. Since over 1 in 4 homes listed for sale is a short sale, this adds up to major frustration for buyers.
Why you don't want to waste your time on short sales(unless pre-approved by the bank):
- Price not real- the majority of all un approved asking prices are countered higher by the bank.
- It takes on average 4-6 months for the bank to respond- this means you can't lock in at these record low rates, time a move with a sale, or even plan a move.
- Seller has no money to make payments- so while you are waiting 4-6 months for the bank to respond, no maintenance is being done by the seller and the value could fall.
- A 4-6 month bidding war- the seller continues to market and accept other offers while you wait and when the bank finally does respond, only the highest offer has a chance.
I certainly don't blame my buyers for searching on their own, but I must keep reminding them- if it is listed by Realtors and it matches your criteria, you've already got it. I make it easy to find the best home in your price range, that meets your basic needs, situation, time-frame, financing and as many of your desires as possible.
Dan Rowe ABR CRS GRI, Broker of Dan Rowe Realty (208)866-3481
Posted at 01:50PM Jun 25, 2010 by Dan Rowe in Short Sales | Comments[0]
