POCATELLO PETER'S PROPERTY PONDERINGS
(an online real estate column updated... often)

*** CHOOSE AN ARTICLE TO READ *** 10/15/09 - INTEREST RATES RISING! 7/02/09 - MORE TAX BREAKS FOR HOMEOWNERS 2/19/09 - FREE MONEY TO HOMBUYERS! 2/16/09 - FOR SALE BY OWNER (FSBO)? 1/02/09 - 1% Rate Drop = $63/month! 11/13/08 - Pocatello is Strong! 9/18/08 - $7500 Tax Credit for ANYONE? 8/27/08 - Sell in a Buyer's Market 8/26/08 - Pocatello Screamin' Deals 8/12/08 - Hire Higher-Tech! 7/17/08 - What's that smell? 6/17/08 - Thoughts on the Fuel Crisis 5/30/08 - Heavy Competition 4/30/08 - Real Estate, Rain or Shine?

Which direction are interest rates likely to move in the next year?
October 15, 2009

More tax breaks for homeowners
in 2009 and beyond
July 02, 2009

FREE MONEY TO HOMEBUYERS!
Yes, the STIMULUS PACKAGE really
can help you!
February 19, 2009

FOR SALE BY OWNER (FSBO) - WHY WOULD I EVER PAY A REALTOR?!
February 16, 2009

Why would anyone hire a Real Estate Agent to sell their home... after all, it's easy! Just put a sign in the yard, throw a blurb in the newspaper classifieds, maybe put it on the internet somewhere and BAM, it is SOLD! Yeah, right... many of you frustrated sellers that are attempting to market your homes by yourselves know that this is tough work that takes time, money and connections.

As a dedicated fulltime REALTOR, I work very hard to market myself, my listings and to build trusted client relationships. My clients generally approach me with caution and walk away with confidence that I went way above and beyond to serve their needs. Buyers don't want me to send them on wild goose chases to view properties that I know nothing about. Sellers don't want me to bring offers from buyers that aren't qualified for financing. My clients also trust me because I'm licensed and insured which means that I'm required by law to uphold high standards of business ethics. They trust the properties we tour because they're listed by licensed REALTORs which are required to produce full property disclosure reports, tax reports, average utility cost reports, known defects.... That's not to say that all agents are good agents, but any agent that doesn't uphold these laws of conduct is fined or stripped of their license. Dealing with unlicensed and uninsured parties is very risky, especially in such large scale life changing transactions of this magnitude... smart people hire a good agent.

That being said, I'm not going to send a client (that I worked very hard to obtain and retain) to a home that I have very little information about. Just to start, I need more pictures and a lot more detail. Also, my clients prefer that I give them a personal tour of every home for reasons of professional knowledge, advice and safety. I always look out for my client's best interests.

Safety you ask? What does safety have to do with it? In today's world, safety is the biggest issue facing people who attempt to sell their own homes. Your safest bet is to hire a licensed REALTOR, but if you still prefer to sell on your own, here's some free advice, 12 tips to keep you and your family safe during the sale process:

1. Know your prospects - meet in a public place first to discuss their needs.
2. Don't be too flashy - no need to tempt people with expensive jewelry or revealing cloths.
3. Create a distress code. When you feel threatened, you can use this seemingly benign verbal code in a phone conversation to your trusted contact. For example, have your contact call you every 10 minutes - your distress code may be the phrase "check in the red file."
4. Give the customer the impression that you have others coming to view the property soon.
5. If you feel threatened, go outside right away. Let them finish the tour on their own.
6. If you have a car with a wireless alarm, keep your finger on the button while showing your home to a stranger - don't hesitate to set off the alarm at the first site of trouble.
7. Do not let your guard down - looks can be deceiving... always face your customers and let them enter rooms first. Stay near the door opening.
8. Inform a friend or family member when you'll be showing your home.
9. Turn on your cell phone and have someone on speed dial - a friend, family member or 911.
10. ...or have a text message ready to send at the touch of a button to your trusted contact.
11. Keep the front door wide open - even if it's cold outside.
12. If you feel threatened, keep your keys pointed out between your fingers and don't be afraid to use them if necessary.

1% RATE DROP = ~$63/MONTH FOR EVERY $100,000 FINANCED!
January 2, 2009

Just one solid bit of information for you who are thinking about buying, selling or refinancing a home or property:
Rates are extremely low - take advantage while you can. Did you know this SIMPLE FACT?

For every 1% rate drop your monthly payment drops about $63 for every $100,000 financed.

That's significant!

Rates were 6.5% back in October, dropped to 5.5% in November, and now are as low as 5%!
On the flipside, if you wait too long and rates go up 1% then you're paying $63/month more for every $100,000 financed. Now is a great time to buy or upgrade. Also, if you're thinking about selling your home, the buyers are starting to come back strong with these low rates... don't miss out on a selling opportunity.

POCATELLO IS STRONG!
November 13, 2008

We are constantly bombarded by the national news... the sky is falling! Look up Pocatello, our skies are bluer than most. Latest stats show that the prices in the Pocatello housing market have only fallen 1/2 of 1% from last year. How can this be? Sure, it's still a buyer's market here, and there's plenty of competition for sellers, but we certainly aren't experiencing the difficulties of the tortured markets in bigger cities and tourist areas. Why? Pocatello's housing market has always been realistically priced. Pocatello's citizens have always been financially responsible. No doubt, we are affected by the national issues, but we enjoy a substantially different localized market. How can you help keep Pocatello's local market strong? Support your local business'!!! Support the "mom n pop" shops, the little guys. Research online but buy locally. I can't stress this enough - buying locally is key to the fiscal strength of Pocatello. Keep us strong.

$7500 TAX CREDIT FOR ANYONE?
(who hasn't bought a home in the last 3 years!)
September 18, 2008

Wow, now this is great incentive to buy a home - not just for first time home buyers, but for anyone who hasn't bought a home within the last three years!

This is the single largest provision in the $15.1 billion package of housing tax incentives in the recently enacted Housing Assistance Tax Act of 2008 (the "Housing Act"). This is a measure allowing individuals buying their first home to take a tax credit of up to $7,500 of the purchase price. Qualified homebuyers can subtract the credit amount from their federal income tax when they buy a home and even get a refund if the credit exceeds the tax. However, they are then required to pay the credit back over 15 years. The result is that the credit resembles an interest-free loan that must be repaid to the government. Here are the details of the new credit:

• The home must be located in the U.S. and must be the taxpayer's principal residence (main home). The taxpayer (and the taxpayer's spouse if married) must not have owned another principal residence in the U.S. in the three-year period before purchasing the new home. Thus, the home doesn't literally have to be the taxpayer's first home.
• The home must have been purchased from April 9, 2008 through June 30, 2009, inclusive.
• A special rule allows taxpayers who purchase a principal residence in the first six months of 2009 to treat the purchase as if made on Dec. 31, 2008.
• The credit is equal to 10% of the price paid for the home, up to a maximum of $7,500. The $7,500 maximum credit applies both to individuals and married couples filing a joint return.
• The credit is phased out for individual taxpayers with modified adjusted gross income (AGI) between $75,000 and $95,000 ($150,000 and $170,000 for joint filers) for the year of purchase.
• The credit is refundable, meaning that households with incomes too low to owe income tax can benefit from it.
• In the second year after purchase, taxpayers who took the credit must start paying back the credit in equal installments over 15 years, with no interest charge.
• If the taxpayer sells the home (or the home ceases to be the principal residence of the taxpayer or the taxpayer's spouse) before complete repayment of the credit, any remaining credit is due on the tax return for the year in which the home is sold (or ceases to be the principal residence). If the home was sold at a loss to an unrelated person, repayment of the remaining credit is forgiven to the extent of the loss.

If you would like more information or further explanation of this credit, please contact Peter Barton at (208) 201-2715.

SELL in a BUYERS MARKET!
August 27, 2008

Yes, for some sellers it is very wise to sell in a buyer's market. What, sell low you say?! YES, if you plan to upgrade, do it in a buyer's market. Set your price at or just below typical market value... this will generate offers. A wise Real Estate Broker once told me that during tough times, "is it better to have negotiation room or someone to negotiate with?" Here's the logic: Even if you end up selling a bit low, when upgrading, you would be buying low too, so you actually come out ahead. For instance, if your home typically has a market value of $165,000, in a buyers market it may sell for 6% less which equals a loss of $9,900 resulting in a sell price of $155,100. But, if you plan to buy a home that is worth $315,000, in that same buyer's market it will also sell for 6% less which is their loss of $18,900, resulting in a sell price of $296,100.

The simple math:
$18,900 (reduction on your purchase)
-$9,900 (reduction on your sale)
=$9000 (this is your net gain in the transaction)

Neat huh?! The bigger the upgrade, the bigger your net gain. It's a win-win situation: you get a nicer home and you made a profit. So it's very simple:

Buyer's Market = good time to upgrade
Seller's Market = good time to downsize (just reverse the math)

Sell low and buy low... good luck!

POCATELLO IS A SCREAMIN' DEAL!
August 26, 2008

Not only is Pocatello the best city I've ever lived (Having lived in over a dozen cities throughout the US), it boasts the most house for the money... anywhere! The Real Estate market is incredibly undervalued here in Southeast Idaho. Where else can you get this much for your money? No where. Getting into a home right now is the perfect time in Pocatello. Why? Because Costco just moved into town, HOKU Scientific is building a new manufacturing facility here, the Hospital is being bought out by a private investor... all these things add up to a growing market for Pocatello! Pocatello has always been a solid and steady market, growing at an average of about 4-5% per year, but soon you'll see it BOOM! All these indicators are hard to ignore. If you want to own a nice home at a reasonable price, don't wait until the market is hot. My foresight is 20/20... don't let your hindsight frustrate you again.

HIRE HIGHER-TECH!
August 12, 2008

Real Estate is a very complicated business and REALTORS (R) really need to stay on top of the process for their buyers and sellers. Having the right tools and knowledge to use those tools is 'a must' to run an effective real estate business these days.

On a home tour, your agent should be able to quote accurate monthly payments, rent/profit calculations, buyer closing costs.... A buyer should not have to rely on a near estimate "off the top of my head." To do all this, an agent must have the tools to make these calculations right on hand in a device such as smart phone, PDA or advanced calculator. An agent should also be able to find a piece of property without wasting their customer's time searching all over town. To do this, an agent should have a GPS or similar mapping function in their car or on their smart device. And most of all, statistics show that over 80% of buyers search the internet first to find their new home! An agent should have excellent knowledge of web marketing and advertising.

Technology serves many purposes in Real Estate in todays marketplace:

Your Real Estate Agent should be fluent in all of these technologies to help you through the increasingly complicated process of buying or selling property in this modern fast-paced marketplace. If not, you could miss out on the quick sale of your home or lose the home of your dreams to a well "connected" buyer's agent. Don't miss out, even if you're not tech savy, hire HIGH-TECH!

"WHAT'S THAT SMELL?"
JULY 17, 2008

Often on a home tour or open house I get that question, "what's that smell?" A strange unidentifiable smell, or worse yet the smell of cigarette smoke or pet waste will deter buyers more than mold, lead based paint, radon and asbestos combined! My most important tip when staging your home: get rid of that smell!!! Scented candles, air fresheners and open windows help, but they're really just cover-ups. Find and destroy the source of the smell. Old garbage, sneaky smokers, rotting food in the garbage disposal, dirty furnace or AC filters, dirty forced air ducts, pet defecation, mildew in the basement or bathrooms... find it and fix it.

After removing the source of the smell, then remove the remnants Clean all curtains and drapes, carpets and rugs and all surfaces of your home. Hire a professional if necessary - they really don't cost much and a good cleaning company can really make a difference. If cleaning didn't completely get rid of the smell, consider replacing the carpets and rugs. If replacing the carpet, remember to replace the padding beneath and clean the floor before installing the new padding and carpet.

I don't have any statistics, but I know that a good smelling home sells for more and sells much faster than a smelly home. The only answer to "What's that smell?" should be "cookies baking in the oven."

THOUGHTS ON THE FUEL "CRISIS?"
JUNE 17, 2008

This is a bit outside the realm of my usual real estate updates, but indirectly this subject has an affect on Real Estate and just about every other market including food, transportation, retail... you name it!

Yeah, I dubbed it "CRISIS," in fashion with the media that likes to over-exaggerate every story. But is it... a crisis? I don't think so. It does have a huge impact on all of our already thinly lined pockets, but in the long run, I believe this is great for all of us. This is not a crisis, it's a correction.

With the rising price of gas, most of us are becoming more efficient and less wasteful in our daily activities. We strategize our routine to reduce travel distances. We use alternative transportation such as our legs, bicycles, mopeds and motorcycles which use very little fuel, if any at all. We demand higher efficiency vehicles in which the auto manufactures are responding to by producing hybrids and ultra-efficient internal combustion engines. All this is not only saving energy and money, but it's resulting in lower emissions. So far, all I see is a temporary aggravation on our wallets. While this is real and painful, in the long run, we'll see better alternatives to gasoline. In the long run, this will save us money, energy and our environment. In the long run, life will be better.

For more information on alternative energies, including solar, wind, bio-mass, geothermal, hydropower, hydrogen fuel-cell and many others that most people haven't ever even heard of, go to alternative-energy-resources.net.

Other resources include HOKU Scientific who is building a major polysilicon supply facility right here in pocatello? HOKU Materials (ticker: HOKU) is the name and their poly will be used in solar panels. In sunny climates like Southeast Idaho, solar panels are a great source of energy. I personally installed my own solar panel array for my camp in Teton Valley. In the dead of winter, I'm able to sustain electricity, without being too conservative, for lights, radio, vacuum, furnace and more! Most of the investment was a tax write-off too - how can you go wrong?

The rise in fuel costs is not a problem, it's a means to the solution!

HEAVY COMPETITION
MAY 30, 2008

Wow, with over 620 residential properties on the market this month, the competition in the Pocatello Real Estate market is pretty heavy. You need to be priced right to compete with other homes listed in the MLS and FSBOs (for sale by owners). If you're a buyer in Pocatello or Southeast Idaho, you now have a 'lot' of choices, great mortgage rates and plenty of leverage when it comes to making an offer. From new construction, to existing homes, from commercial to rental properties, from recreational to residential to farmland properties, the market is primed for the buyer!

Sellers: My advice is to get an accurate market analysis, price it right and set focus on the highlights that set your property apart from the rest. Set and balance your goals of time-frame and price. It's not a bad market in Pocatello, but you'll need to be willing to bend a bit. Be glad you're not trying to sell in a big metropolitan city right now!

Buyers: My advice is to browse the magnificent selection, get prequalified for a loan, analyze and compare market values and jump on your investment while the market is in your favor.

All: My advice is to step back, take big deep breath and go out and enjoy the great outdoors to relieve all your stress! Hiking, biking, running, fishing, horseback riding... will all help to drain your stress and energize you for those big real estate decisions. Go play!

REAL ESTATE, RAIN OR SHINE?
APRIL 30, 2008

Is it the weather?! At a time when the market should be energetic, buyer's just aren't coming out to brave the rain and the cold. Wow, will winter ever let go this year in Pocatello?! Or, are the buyers concerned about the so-called "mortgage crisis" dished out by the ratings hungry media which has so generously over-exaggerated the situation? The media isn't all wrong though. True, there are plenty of really tough real estate markets out there. The news is everywhere, but the real estate market is always local. While big cities and over-inflated tourist areas are experiencing a major downturn, Pocatello just keeps rolling along. I'm not worried and neither should you. The real estate market in Pocatello is not over-inflated - you always could and still can get a lot for your money here in Southeast Idaho. So don't be afraid of the market or the rain, go find your dream home! This is some much needed rain, but the sun will shine again.