Porch Talk

This is the time of year when perspective sellers start to ask the question, “Should we list our home now or wait until next spring?” It is a question worth considering in Boise where the winters can mask some of a homes features. So, what is the answer? It depends.
Real estate is somewhat seasonal in Idaho with more homes being sold in the spring and summer than in the winter. There are several factors that make this true. It does not, however, mean that homes don’t sell in the winter. They absolutely do. People move all year. And, if you are a seller, there is less competition.
To determine what is right for you, ask yourself the following questions.
Does your yard greatly enhance the appeal or value of your property?
Is your house show ready, or do you need time to make repairs, paint, or deep clean the house?
Are you willing to risk what the market may or may not do between now and next spring?
The answers to these questions should help you decide if now is the time to list or not. Remember that people do move in the winter and, if your home isn’t listed, you can be sure it won’t be shown.

“Home is where the heart is,” but the location of that heart appears to be changing. U.S. homeowners have had a love affair with the suburbs since the late 1940’s when troops returned from WWII. Single family homes with big yards and lawns have been all the rage for over a half century. Now, the pendulum is starting to swing in the other direction. More people are choosing to live closer to where they work, shop and play. Why? I believe the two biggest reasons are the growing concern for the planet and the current economic situation.

What do subdivisions have to do with the rising green consciousness and the economy? Well, everything. Let’s start with one of the most obvious answers; commuting. According to DowntownBoise.org (thank you @unequivocal208), over 36,000 employees work downtown every day. As of 2003 (Capital City Development Corp.), there were only 2000 dwelling units downtown. The rest of the workforce was commuting from outside the downtown area. When gas hit $4 per gallon, commuters took notice. Even with the lower cost of fuel today, the cost of commuting really adds up. Here is an example:

Homeowner A lives 20 miles from work. He bought a home for $250,000. He earns $50,000 per year, drives a $20,000 car that gets 20 mpg. His mortgage is at 5% and he pays $2.90 per gallon for gas.

Homeowner B lives 2 miles from work. She paid $300,000 for her home. All other factors are identical to Homeowner A. They each make 22 commutes to work per month.

Here is the financial breakdown:

Homeowner A:

Monthly Payment on House B: $1,342.05
Loan Amount: $250,000
Monthly Fuel Cost: $127.60
Monthly Maintenance Cost: $211.20
Monthly Time Cost: $488.89
Total Monthly Cost: $2,169.74

Homeowner B:

Monthly Payment on House A: $1,610.46
Loan Amount: $300,000
Monthly Fuel Cost: $12.76
Monthly Maintenance Cost: $21.12
Monthly Time Cost: $48.89
Total Monthly Cost: $1,693.23

You can fill in your own information here.

When you take this information and combine it with the fact that Homeowner A is adding approximately 900 lbs of CO2 emissions per month compared to Homeowner B’s 82 lbs just from driving to work, the picture becomes even clearer. Commuting takes its toll on the planet as well as the wallet.  It is not necessarily less expensive to move farther away from work to buy in a less expensive area.

What does this mean for Boise real estate? The popularity of Boise’s core neighborhoods (those in close proximity to downtown) will keep rising. Homes in these areas will continue to be more expensive and will hold their value better than those that are further away from amenities. People will keep remodeling and renovating the older, close-in neighborhoods and we will see more people choosing to live in downtown condos.

There are absolutely fabulous deals right now if you are looking to buy a home or investment property in Boise, Idaho. Prices are down, and sellers need to compete with short sales and REOs (bank-owned properties) if they want to sell. The question is how do you compare homes and find the real deal?

First, decide exactly what you are looking for. This “dream list” should include area, home features and size. Realize that you may not get everything on your list, but it is a place to start. Enlist the help of an experienced Realtor® who can help you find the homes you’ll want to look at and begin your search. Your agent should also refer you to several lenders to get pre-qualified for a loan. The best deals definitely go to those who are prepared.

When comparing properties and prices, there are many things to keep in mind. Every home is different, and value must be measured keeping those differences in mind. Two 1500 square foot homes may have wildly different prices, but it doesn’t mean that the less expensive of the two is the better deal.

The biggest factor affecting pricing is location. You will pay much more per square foot in East Boise or the North End than you will in West Boise. The next thing to consider is what updates have been made. If you are looking at an older house, have the electrical & plumbing systems been improved? Is the kitchen remodeled? The bathrooms? How old are the roof and the HVAC system? How much work (read money) will you need to put in to get the home into the shape you want? There are other factors that need to be considered as well. Your agent can help you identify and research these.

Once you have found the right property, it’s time to craft an offer. This is where a good agent’s skill really comes into play. A well-planned offer will save you money and frustration. Your agent should prepare a market analysis of the home. Together, you can study the comparables and decide what a reasonable price would be. You can discuss the best way to approach your offer by taking into consideration things like how long the property has been on the market, what competition it has and the condition it is in.

Your agent should present the offer and be prepared to negotiate on your behalf if there is a counter offer. She will also use those negotiating skills to get the seller to pay for repairs needed once the inspection has been completed. She will be able to discuss with you the pros and cons of asking for seller concessions and get you past small things that should not be deal breakers.

Just looking for the lowest priced home is not the way to find the best real estate deals. It takes work, but by teaming with a professional and doing some groundwork, you can find the perfect property and get it for a great price.

Ada County Homes for sale September 2007 through March 2008.

The question is, would you rather be one of 5200 Ada County homes from which buyers can choose or one of 4100? I think this is an obvious choice. So, even though you might be tempted to take some time off during the winter or holiday season, the fact is that you would be missing a valuable market opportunity.

Many sellers complain that having their home for sale puts a crimp in their holiday decorating. Again, the choice is yours. What is your motivation? You can still put out some of your favorite holiday items. You may have to tone it down a bit if you are a decorating over-achiever. Your Realtor can help you make decisions about what gets put out. Generally, standard staging rules apply. Anything too cluttered makes it more difficult for potential buyers to notice the features your home offers. When kept simple, holiday decorations make a home feel warm and inviting.

If you really want to sell, keep your home listed throughout the holiday season. Any inconveniences will seem minor when you can move on while others are waiting for spring to list their homes along with everyone else.