As our market shifts, lack of available inventory is quickly becoming our biggest issue. So what happens when you have lack of supply and high demand? Upward pressure on pricing, that’s what. Multiple competing offers on properties and buyers chomping at the bit in anticipation of new listings.  That an increased demand for land and even, you guessed it, new construction which we are beginning to see in Hailey as well in the higher end markets in Ketchum and Sun Valley.

It’s an exciting time to be in the business of real estate here in Sun Valley. We’ve weathered the storm of the recession, licked our wounds, learned our lessons, got stronger and smarter and we are ready to go to work for you as we spring ahead into what promises to be an incredible summer selling season here in Sun Valley. Ready to get started?

Welcome to the second installment of How to And How Not to Sell Your Home. Keep reading to find out how you can make your home more marketable!

DO:

2. Keep your house in good shape inside and out! The last thing a buyer wants is to buy a house and then spend years and even more money fixing it up. Just because you’re selling doesn’t mean you can let your house go into disrepair. A potential buyer would much rather notice the nice views and expensive wood floors your house boasts than the leaks in the master bedroom and the overgrown lawn filled with weeds, but if the latter is present, the former doesn’t always make up for it. You don’t have to go all out, just keep your house in good shape.

DON’T:

2. Hire the wrong broker. Ideally, a good broker should do 90% of the business. You also want to look for a broker who is enthusiastic about finding you a good buyer. A broker who seems disinterested or who is flaky is not the broker you want to be working with. Ask family or friends for recommendations to help you find the perfect broker. Also, you can always change brokers– just because you initially worked with one doesn’t mean you’re obligated to stick with him/her throughout the whole process.

Good luck and happy selling!

As the name suggests, reverse auctions are those transactions in which the roles of buyers and sellers are reversed.  For example, en a traditional auction, most commonly known as a forward auction, buyers compete to obtain a property, with the selling price increasing as the buyers keep raising their bids in an effort to outlast each other.  A real estate reverse auction, is just the opposite.  In the case of a reverse auction, the seller steadily drops their price until they find the price point. Sellers drop their price until they reach market demand.

Aside from the distressed property sales, the “reverse auction” is essentially what successful sellers in this tough real estate environment have done. That is, they have steadily dropped their price until the market has been found for their property.  As the old saying goes, “there’s a price for every property.” It may not be necessarily what the seller wants but it’s always been true. Patience has been the tactic of Sun Valley real estate buyers as they have observed this slow-moving reverse auction.

One of my clients is creative and so we discussed the idea of simply accelerating the reverse auction that is the norm in today’s real estate market in the Sun Valley market.  This particular property is a premier, award-winning estate home. My client views himself as a realist.  As we’ve seen in several of the homes in this price range, homes have instantly gotten activity when they hit the right price threshold. Sometimes multiple offers and sometimes, the price actually can get driven up from the reduced price.  With this being prime selling season and the stock market doing well, we believe this will be the most efficient way to identify market demand. A proactive and forward thinking approach.

As of today, this extraordinary, close-in property will have meaningful daily price drops.  Every day!  This home will sell soon so if you want an award-winning property with spectacular views at the most affordable you’ll ever see, now is the time to take action. Contact me at 208-309-1560 or jamie@coulterproperties.com if you are interested in this property or you’d like me to help you develop a creative selling strategy similar to this for your own home.  Today’s demanding market conditions require creative and aggressive marketing approaches.  Please enjoy the slideshow below and a description of this exceptional property.

Property Description:

Dramatic & magnificent log home. Stunning Boulder Mt. views. Surrounded by 1000’s of acres of open space and other 4+ acre estate lots. Private yet only 5 minutes to Baldy and town and near the Mountain Rides line and bike paths. Ski & hike out back door and rarely run into anyone. This nearly 6,000 square foot home has four bedroom suites with full baths. 30′ ceilings in great room, private apartment, master w/ steam room, wine storage, Elkhorn amenities.  Click on Sun Valley Log Home or scroll through the images below for a photo tour.

It’s a vicious cycle.

In the words of Mike Castleman, Sr. of Metrostudy, we are “not suffering from what would normally be considered an oversupply of housing– [we're] suffering from tremendous underdemand” (Bottome Line Personal, Volume 32 Number 14, page 5). What has happened is that people lost their jobs, so homes went into foreclosures and shortsales, so many people couldn’t afford new homes, so the demand of homes fell, so the prices of homes fell, so more people started to worry about the declining prices of homes, so less people are buying houses, so the prices continue to fall… and on and on it goes.

So take the plunge! Worried about the lack of jobs? The job market is picking up. Worried about mortgages? It’s true, companies are lending less. But it is optimistic that more people will be able to obtain mortgages because the government wants to boost the economy. For those with a mortgage, even if the house values continue to fall, interest rates today are incredibly low, so even if they do increase, your mortgage payments will be just about the same. Worried about “[tying yourself] to a declining asset”? Rent rates are beginning to exceed the cost of owning a home, so more people are starting to buy instead of rent.

The bottom line is: now is the time to buy a house! What are you waiting for? Give me an email at jamie@coulterproperties.com to start looking for your new home today!

For about 4 days Friedman Memorial Airport looks like LaGuardia with corporate jets stacked ten deep waiting to pick up and drop off their high profile passengers.  This event has come to represent a highly anticipated and appreciated event by bringing a ton of national media attention and exposure for Sun Valley.  Plus, the CEO’s are invited to bring along family members who provide a huge financial shot in the arm for local businesses.  Hop in your jet and come see us next year.

Is it better to give my house back to the bank or short-sale it? As a mortgage professional, I hear this question all the time from real estate agents and frightened homeowners.

I have to preface this article by stating that loan guidelines and credit scoring algorithms change frequently… please bear in mind, what’s true today might be different tomorrow. Adding to the confusion is the fact that many lenders impose more restrictive guidelines than those referenced below. Having said that, here is a basic guide for those facing short-sale or foreclosure:

Short Sales and Short Refinances

When a bank agrees to settle for less than the full amount owed on a loan, otherwise known as a “short sale” or a “short refinance” it will typically impact your credit score by 50-150 points according to many credit experts. The higher your credit score is to start with the more of a hit it will take.

If a short-sale was due to financial mismanagement, you may not be able to qualify for another mortgage for up to two years on FHA loans and four years on conventional loans. Under some circumstances, FHA will waive the waiting period entirely for those who do not get behind on their payments prior to the short-sale.

Foreclosures, Pre-Foreclosures and Deed-in-Lieu of Foreclosure

Sometimes a bank will agree to take the deed to the home in lieu of going through the foreclosure process. Credit experts say that both “Deed in Lieu” and actual foreclosures will typically impact your credit scores by 50-250 points.

If a foreclosure was due to financial mismanagement, you may not be able to qualify for another mortgage for at up to two years on VA loans, three years on FHA loans and four years on conventional loans. A deed in lieu of foreclosure has slightly relaxed conventional guidelines, only requiring a two year wait.

The waiting periods listed above might be shortened if you can prove extenuating circumstances, but these are difficult to qualify for. Frequently loss of job, relocation, divorce or decline in value do not qualify as an extenuating circumstance. Furthermore, the waiting periods might be longer for many circumstances especially if it appears that a borrower orchestrated a “strategic default.”

Homeowners should know that some lenders will pursue a judgment for any deficiency balance owed after a short-sale, foreclosure, or deed in lieu of foreclosure. If this happens, it opens a whole new can of credit and mortgage worms.

Could you get stuck with a big tax bill as a result of a short-sale or foreclosure? Prudent homeowners will consult a tax accountant about possible tax ramifications because the Mortgage Forgiveness Debt Relief Act does not apply to every situation.

What’s the good news? If a mortgage default cannot be avoided, then homeowners should remember that isolated credit issues are better than multiple or ongoing issues and your credit scores will slowly recover over time. After seven years most derogatory information will drop off your credit report entirely and it’s never too early to start rebuilding good credit.