George Tallabas Boise Real Estate

Boise Real Estate market and others will change again

George Tallabas — Fri, 27 Apr 2012 20:58:00 GMT

Since January 1st of 2012 many real estate markets have seen quite a change compared to the past few years. I recently returned from a real estate summit in Chicago where many real estate agents from across the country told me they were short of inventory and were having a hard time finding suitable homes for their ready, willing and able Home Buyers.

Many home buyers that did not purchase a home in the past few years entered the market when mortage rates plunged below 4% for the first time since the great depression. Those buyers were joined by former short sale sellers that sold their homes in 2007, 2008, 2009 and early 2010. It takes 2-3 years to repair ones credit after a short sale. These one time short sale sellers entered the market as buyers the past several months. All these buyers found out they can buy a home and have the payment much lower that rent. The Boise Real Estate market has seen a dramatic change and there is a shortage of quality home listings in just about every price range because of these buyers entering the market.

Will this shortage of quality home listings and near record low mortgages last? The simple answer is no, it simply cannot be sustained. To those that remember the early 1980s it should be easy to see what lies ahead. In the late 70s and early 1980/81 the federal government stimulated the economy to encourage growth. The only problem was the Fed did not raise rates soon enough to cool runaway inflation and the result was 17.5% mortgage rates and 21.5% prime rate. Remember I said the Fed stimulated the economy in the late 70s and early 80s. Sound familiar? I have never seen the Federal Government stimulate the economy in my lifetime more than they have the past several years from Bank bailouts to the clunker program and everything in between. The real estate related incentive programs cost the American Tax Payer billions.

The talk on CNBCs "Squawk on the Street" the past few weeks has been about the need for the Fed to raise rates to avoid runaway inflation. Without a move by the Fed inflation could get out of control like it did in the early 80s and no one wants to see that. Rates need to go up for two reasons. First is to avoid runaway inflation and secondly to help savers whose money has had no earning power the past few years. The BIG question then is not "will the Fed raise interest rates but when and by how much" A half to one percent increase in mortage rates should not have a major impact on real estate markets across the country but anything above that could really cool some smoking hot markets fast.

George Tallabas
Associate Broker
RE/MAX Advantage

HUD Foreclosure Home Search

George Tallabas — Wed, 24 Nov 2010 21:51:00 GMT

The government branch known as HUD is foreclosing on more and more homes nationwide and Southwest Idaho is no exception. Starting this month there is a new site to use when searching for HUD Homes. Visit www.HUDHomeStore.com to view all the new listings in Southwest Idaho. This site will give you all the information on the inventory of homes owned by HUD and will announce any special finance programs etc.

Can any real estate agent represent a buyer on a HUD Home? The answer is no. Your real estate agent must be a HUD approved agent who's office has met the requirement for handling HUD transactions. My office is a HUD approved office and I have been selling HUD homes since the mid 90's. If you have any questions as to the procedure in buying a HUD home please email me at george@tallabas.com or call me at 208-880-2333.

Boise Homes for sale

George Tallabas — Thu, 22 Jul 2010 16:57:00 GMT

The Boise Idaho Home Market is alive and well and just keeps getting better with the new low interest rates that have hit the market. I warned many a few months ago that mortgage rates would likely rise because of inflation caused by our government pouring billions of dollars into stimulous programs. Historically this kind of practice causes inflation and causes interest rates to rise.

The exact oposite has happened and Boise Home Buyers now have the best of both worlds. The number of Boise Homes for sale at prices not seen in years along with mortgage rates that have not been seen since the 1950's! This week (July of 2010) a mortgage lender quoted me 4.5% for a 30 year loan and 3.75% for a 15 year loan. It does not matter that the $8,000 federal tax credit has expired because the new low interest rates more that make up for it.

If you have any interest at all in becoming an Idaho Home Buyer please don't pass up the incredible opportunity that exists in the Boise Idaho Home Market. This is a rare opportunity in the history of our country that may not repeat itself for decades and decades. By going to the home page of Search Idaho homes you can click the "Search MLS Listings" page and search over 9,000 homes currently for sale in the Boise Idaho MLS Service which includes Ada, Canyon, Owyhee adn Payette Counties.

Good luck and please contact me at 208-880-2333 with any questions.

New FHA Buyer Guidelines >> Mom always told you "Credit Matters"

George Tallabas — Fri, 05 Mar 2010 22:15:00 GMT

Idaho First Time Home Buyers and first time home buyers across the country have had it pretty smooth for years when it comes to securing an FHA insured loan. The lower down payments of 3.5% and low mortgage insurance made the loans very attractive. What is mortgage insurance? Mortgage Insurance is a premium buyers pay on their loans which insures the lender against any loss in the event of a foreclosure. With the amount of homes FHA and other private lenders have ended up with the last few years FHA said new changes were required to streamline it's operation and remain solvent while at the same time rewarding buyers that have their financial home in order. Here are the changes FHA has announced:

Up front mortgage insurance goes to 2.25% from the current rate of 1.75%
Minimum down payment increases to 10% for credit scores of 580 and below
For credit scores of 580 and above the down payment remains at 3.5%
Reduces seller allowed contributions from 6% to 3%

The two biggest hits here are increased down payments for credit scores of 580 and below and the reduced seller contribution. Sellers in the past have been allowed to pay 6% of the loan amount to assist buyers in paying closing costs. This new rule will require Idaho First Time Home buyers to pay for more of the up front closings costs to secure an FHA loan. The up front mortgage insurance will go into effect on April 5, 2010. FHA will also seek legislation to raise the annual mortgage insurance premium to a level above the current cap of .55%. This is the amount that is added to loans over the life of the loan.

Bottom line is FHA is rewarding buyers which have taken care of their credit and penalizing those that have not. I have been telling Idaho First Time Home Buyers for years of the importance of taking care of their credit. This is so important and cannot be overstated. If your credit is not good please take measures to work on it and get it improved. You will be rewarded in many ways.

Questions? Call me directly at 208-880-2333

Boise Real Estate market is changing for buyers >> Is your offer safe?

George Tallabas — Fri, 05 Mar 2010 01:22:00 GMT

The Boise Real Estate market and the surrounding Treasure Valley has been hit by something that we have not seen for a few years. All of a sudden we have been hit by the "Multiple Offer Effect". Many of the REO's or "Real Estate Owned" by mortgage lenders have hit such low prices that it has attracted many Idaho Home Buyers after the same property and it has caused a bidding war on many of these homes. Not only has the low prices of many of these homes caused such a frenzy but the Federal Tax Credit is in it's final months of existance has caused many Idaho Home buyers to take action because of the looming deadline.

So how do buyers handle this new market that has seen the Boise Real Estate market and the Treasure Valley real estate market change from what was a depressed real estate market flooded with Idaho Short Sales and Bank owned properties to this new multiple offer frenzy? First make sure that when you obtain a list of homes from your Idaho Real Estate Professional that you have your agent call in advance on all listings that say "Active". The reason for this is that many banks will accept offers but the change may not go into the computer for several days later. This is because banks have their own documents that need to be signed but it make take them days to get those documents to the buyer. Regardless, when the banks commit to an offer verbally in their mind the property is sold. I recently phoned on an REO home that was advertised as "Active" in the MLS but had 4 offers on the table and one of the offers had been accepted by the bank one day prior.

I have also recently seen many buyers that have been exposed to great deals on some of these REO homes but still want to "Bargain" because everyone wants a good deal right? The problem with this is that if the home is already a great deal several other buyers will see that it is a great deal as well and will submit reasonable offers. If one or more buyers submit reasonable offers and you submit a low ball offer who do you think will win out? If buyers play this low ball offer game too long they could easily get discouraged and feel they are never going to buy a home. So how do you know if a home is a good deal or not? Have your Idaho Real Estate Professional run comparable sales for the past 6 months on any home your are interested in. This report will show you the average days on the market, average selling prices and average selling prices per square foot. By looking at these reports you can easily see if you are paying a fair market price for any home.

Theare are many Boise ID homes for sale that are still a great buy and these great buys extend across the Treasure Valley. Just do your homework, be patient and smart and you will find one of these great deals that still exist. To get started on your own home search click Boise Real Esate Search

Questions? Call me directly at 208-880-2333

Boise Home Sales benifit from national drop in housing sales

George Tallabas — Sat, 27 Feb 2010 17:46:00 GMT

Boise ID homes for sale benefit from from a drop in the National home sales? No I did not bump my head up against the curb. This week the National Association of Realtors announced the sale of previously occupied homes fell for the second month in a row in January, 2010. The sales of previously occupied homes fell 7.2% surprising economists and reafirming the glut of homes on the market and the lack of jobs.

So why is bad economic news good for Boise Home sales? Any weak ecomic news and especially real weak economic news confirms the economy is weak and still needs to be stimulated with lower interest rates. Yes, "bad ecomomic news" strengthens the bond markets and puts downward pressure on mortage rates. Simply put, when enough bad economic news is reported the Federal Reserve will lower interest rates in an attempt to stimulate a weak economy. Mortage rates were sitting at sub 5% levels for weeks and just recently surpassed the 5% mark which is still awesome. This surprising economic news regarding Idaho home sales assures us at least for the immediate future mortgage rates should remain very stable and may even go lower if more bad economic news is reported, ie: durable goods orders, auto sales, retail sales, etc.

I have been saying for weeks and months that this is an incredible time to buy real estate in Idaho. When you add the lowest mortgage rates in years, the Federal Tax Credit and the price of homes retreating to levels seen in the early 90's it is simply one of the best times to buy a home this country has ever seen. Speaking of the Federal Tax Credit; the deadline for qualifying is fast approaching. Go to My Federal Tax Credit to read more about this tax credit which benefits Idaho first time home buyers and second time home owners.

The Boise Real Estate Market still offers great opportunities but waiting too long may prove costly to procrastinators. If you need assistance with with financing or any other part of the home buying process contact your Boise Realtor

Boise ID Home Sales >> Micron Solar alliance could help

George Tallabas — Sun, 21 Feb 2010 18:23:00 GMT

Boise ID Home Sales could benefit from a recent announcement from Boise based Micron Technology that it has formed a partnership with Australian company Origin Energy. Origin generates and retails energy to about 3 million customers.

Origin Energy produces commercial solar panels using a new silicon water called "silver" technology at a facility in Austrailia. The company announced in January of this year it has been testing the manufacturing of these unique chemically etched silicon cells at Micron in Boise Idaho according to sources close to the company. Australia National University experts say the payback for investing in solar power could drop from 20 years to to 5 once the technology is perfected and in production.

"It was clear that combining our semiconductor manufacturing expertise with Origin Energy's solar experience could result in a powerful partnership," Micron Chairman and CEO Steve Appleton and Chief Operating Officer Mark Durcan said in a memo.

A year ago Micron announced its interest in converting idle buildings in Boise and Nampa to manufacture solar panels and high-efficiency lighting components known as LEDs. A few months later, it began developing LED manufacturing facilities with $5 million in state and federal stimulus dollars.

"One of the keys to solar is a lot of the customers are big customers," said Mike Howard, a senior analyst with iSuppli and former Micron employee. Origin makes the technology and could, ostensibly, use it in its power generation. Even while Micron's involvement in solar and LEDs is far behind its memory operations, Howard expects both of them to grow.

"Micron isn't just getting into this to keep people busy," Howard said. "They want this to be a significant revenue generator." Hundreds of millions of dollars Micron invested in its now-obsolete silicon memory plants in Boise offer it a chance to develop state of the art manufacturing on both solar and LED technology, he said.

Micron Technology announced that a profit in December of 2009 of $200 million is due to an impoved market for computer chips. Micron once employed more than 11,000 people in the Treasure Valley and was Idaho's largest private employer. Today it has about 5,000 employees. The improved computer chip market and the new partnership with Origin Energy could be what the Boise Real Estate and Treasure Valley real estate markets need. A the unemployment levels in the valley could see significant reversals if Micron and Hewelett-Packards renewed profits prove to be consistent for the months to come.

Boise Real Estate >> Could benefit from HP announcement

George Tallabas — Sun, 21 Feb 2010 00:30:00 GMT

Boise Idaho Home Sales could see a shot in the arm if recent announcements by Hewlett-Packard provide stability and even possible growth in the Boise job market. HP recently announced first quarter net revenues of $31.2 billion, up 8%, or $2.4 billion from a year earlier.

"HP is well-positioned to outperform the market," said Mark Hurd, HP chairman and chief executive officer. "The strength of our portfolio, leaner cost structure and accelerating market momentum give us the confidence to raise our full-year outlook."

"Solid performance across teh business and disciplined execution on our cost initiatives contributed to strong growth in cash flow and EPS," said Cathi Lesjak, HP executive president and chief financial officer. "We will continue to invest for growth and leverage our scale and global position to take advantage of an improving demand environment."

HP first opened for business in Boise Idaho in 1973 and moved to its' campus off of Chinden Blvd. in 1976 when it opened it's printer division which as part of a growing high-tech field. HP employed 4,000 at it's peak and currently employees approximately 3,000 employees. HP's presence in Boise Idaho helped launch a tech industry that now accounts for 11% of the Treasure Valley's work force.

If this recent growth by HP is any sign of a true tech recovery the Treasure Valley could see continued job improvement from a tech sector that has been hard hit by the recession. The Treasure Valley has seen record levels of Idaho Short Sales and Idaho Foreclosures which have caused real property values to plummet to levels seen in the late 80's to early 90's.

$8,000 and the $6,500 Federal Tax Credit programs expire April 30, 2010

George Tallabas — Tue, 02 Feb 2010 02:25:00 GMT

Boise Real Estate home buyers and the entire Treasure Valley was recently informed about the extension of the $8,000 Federal Tax Credit and the new $6,500 credit for home sellers. It has now been extended through the end of June, 2010. Idaho homebuyers must sign a real estate purchase and sale contract before April 30, 2010 and close by June, 2010. The income limits have now been raised: Single buyers can now earn up to $125,000 and still get the full credit while married couples can earn a maximum of $225,000.

The new current bill also makes more homeowners eligible to claim the credit on their income taxes. Idaho First-time buyers, those who have not owned a home in the past three years as defined by HUD still qualify for an $8,000 rebate. Now, those who want to trade up also qualify. Those who have owned a home and have occupied it as their primary residence for at least five years out of the last eight can claim a $6,500 tax credit if they close on a new purchase by the end of June, 2010.

The expansion of the tax credit comes as a big surprise and gives many more the opportunity to take advantage of the great home prices seen in the Boise Idaho Real Estate market. With interest rates sitting at amazingly low rates there has rarely been a better time to buy a home.

If you have any questions regarding the tax credit program please contact your CPA or real estate attorney. If you dont' have a CPA or real estate attorney let me know and I will give you some great names.

Want to start your Idaho Home Search now? go to Idaho Real Estate Search

Fannie Mae to pay buyers 3.5% to buy a foreclosed home!

George Tallabas — Tue, 02 Feb 2010 01:53:00 GMT

Boise Idaho Real Estate home buyers and the entire state of Idaho just got a big boost. Fannie Mae just announced a program where they will pay a 3.5% incentive to any Idaho Home Buyer that purchases and closes on a Fannie Mae owned home between January 28, 2010 and April 30, 2010. Buyers purchasing in this time frame may receive up to 3.5% of the final sales price for:

Buyers closing costs
The purchase of new Whirlpool appliances, a the buyer's discretion, up to the maximum 3.5%
A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%

For Idaho Home Buyers to be eligible for this incentive:

Offers must be accepted on or after January 28, 2010
Property sales must close before May 1, 2010
Buyer's must occupy the home as their primary residence and investors are excluded

Fannie Mae sold 89,691 foreclosed homes in the third quarter of 2009, up from 39,864 in the previous quarter it said in it's most recent quarterly filing. Fannie Mae had 72,275 foreclosed homes called REO's or "Real Estate Owned" homes as of September 30th, 2009.

Fannie Mae has been trying to trim it's inventory of foreclosed homes, an inventory that has risen amid a three-year housing slump in which home prices have plummeted. The move is designed to spur sales in a still-weak housing market said Terry Edwards, Fannie Mae's executive vice president of credit portfolio management.

This announcement by Fannie Mae is in addition to the $8,000 and $6,500 Federal Tax Credit that is scheduled to also expire on April 30th of 2010. This is simply a win-win environment for Idaho Home Buyers considering the low mortgage rates that are still available.

How do you find Fannie Mae REO properties? Fannie Mae lists all of it's REO homes at www.HomePath.com and it is a site that is easy to navigate through. Once you have located a Fannie Mae REO that catches your attention you need good representation that is representing YOU ONLY in the transaction. To view one of these Fannie Mae homes email me at george@tallabas.com or call me directly at 208-880-2333 to schedule a showing.

Idaho Short Sales >> Where are we?

George Tallabas — Sat, 30 Jan 2010 23:32:00 GMT

Idaho Short Sales

Now well into 2010 where are we with Short Sales in Idaho ? Idaho Short Sales are alive and well and more than 85% of all listings in the Intermountain Multiple Listing Service of southwest Idaho are either short sales or Idaho Foreclosures also known as REO's or "Real Estate owned" by banks. In a recent report Idaho was one of top 5 states around the country that had an 18% or higher increase in the amount of short sale and REO listings in 2009. Until the country's employmet picture improves one cannot expect the level of Idaho Shorts Sales and REO's to cool off.

So what should consumers do? If you are facing a Short Sale in Idaho it is important to note what your options are and where you need to turn for assistance. All Short Sale Realtors in Idaho are created equal right? WRONG! In 2008 the Idaho Statesman wrote an article about the importance of using an Idaho Certified Short Sale Specialist. I became a Certified Short Sale Specialist in 2008 by going through extensive training. In addition to having 15 years experience in Idaho Short Sales my Short Sale listing partner, Yuri Blanco and I attended a seminar in Boise where the speaker was Lee Honish who had been a loss mitigator with Indi Mac for 17 years. Lee gave us valuable insight into how banks think when working with short sales which was invaluable.

What does this mean to you? I will give you a little example: There is a lot of free data available to licensed Realtors via the Intermountain Multiple Listing Service. Much of this valuable data is not used properly by the average Realtor. Most Realtors think that when the banks make up their minds that is it and we need to accept it. This could not be further from the truth. I advised my listing partner, Yuri Blanco recently to use a market graph from the MLS service and add it to an email she had composed. The result was that she convinced Wells Fargo to reduce what they had called their final offer by $20,000!

Just last week one of my clients was anxiously waiting for an answer from Flagstar on a second mortgage. The first mortgage company had already given us approval and the second lien holder, Flagstar was taking it's time in giving us a decision. I used the graphs from the MLS service and sent several creative and factual emails to Flagstar over a period of a week and a half. At the end of last week we received written approval from Flagstar and the entire approval time frame to obtain approval from the first lien holder and the second from Flagstar was a total of 6 weeks. Of course we cannot assure you of a 6 week approval but my point is that an aggressive Certified Short Sale Specialist knows what can and cannot be done with working with mortgage lenders and will do everything we can to negotiate and use all the tools available to us.

Facing a short sale in Idaho? go to Idaho Short Sale Assistance and then call me at 208-880-2333 for your private consultation.

FHA 90 Anti-Flipping rule gets a one year waiver >> Good news for investors and buyers

George Tallabas — Tue, 19 Jan 2010 01:49:00 GMT

FHA recently announced a temporary (1 yr) relaxation of its "90-day" anti-flipping rule, which prohibits the use of FHA insured financing if the contract for sale was executed within 90 days of the seller's acquisition of the property. What this rule said is that if an investor purchased a rehab home, remodeled it and wanted to resell it, they could not use FHA funds until a 90 day period had expired from the time the investor took title.

This waiver, which takes effect on February 1, 2010 and is for one year is limited to those sales meeting the following criteria:

1. All transactions must be arms-length, with no identity of interest between the buyer and the seller or other parties participating in the sales transaction. Some ways that the lender can insure that there is no inappropriate collusion or agreements between the parties is to assess and determine the following:

The seller holds title to the property;
LLC's, corporations, or trusts that are serving as sellers were established and are operated in accordance with applicable state and federal laws;
No pattern of previous flipping activity exists for the subject property, as evidenced by multiple title transfers within a 12-month time frame (chain of title information for the subject property can be found in the appraisal report.
The property was marketed openly and fairly, via MLS, auction, For Sale by Owner offering, or developer marketing (any sales contracts that refer to an "assignment of contact of sale," which represents a special arrangement between seller and buyer may be a red flag).

2. In cases in which the sales price of the property is 20 percent or more over and above the seller's acquisition cost, the waiver will only apply if the lender:

Justifies the increase in value by retaining in the loan file supporting documentation and/or a second appraisal which verifies that the seller has completed sufficient legitimate renovation, repair, and rehabilitation work on the subject property to substantiate the increase in value or, in cases where no such work is performed, the appraiser provides appropriate explanation of the increase in property value since the prior title transfer; and
Orders a property inspection and provides the inspection report to the purchaser before closing. FHA-approved inspectors or 203(k) consultants is not required. The inspector must have no interest in the property or relationship with the seller, and must not receive compensation for the inspection from any party other than the lender. Also, the inspector may not compensate anyone for the referral of the inspection. Additionally, the inspector may not receive any compensation for referring or recommending contractors to perform any repairs recommended by the inspection, and may not be involved with performing any repairs recommended by the inspection.

FHA finds that by eliminating the 90 day resale restriction for buyers it will give FHA a greater opportunity to dispose of it's single family REO properties in a way that maximizes return to the FHA's mortgage insurance fund; also, permitting buyers to use FHA-insured financing to purchase other bank-owned properties, or properties sold through private sales for resale, will help create market conditions that will allow homes to resell as quickly as possible, thus helping to stabilize real estate prices as well as helping to stabilize neighborhoods and communities where foreclosure activity has been high.

New FHA Guidelines allow Idaho Short Sale sellers to buy immediately after a short sale

George Tallabas — Wed, 06 Jan 2010 16:55:00 GMT

With all the talk about Idaho Short Sales and Idaho Bank Owned Real Estate there has also been talk about how anyone selling a home using the short sale process would have their credit damaged and would be unable to buy a home for 3 years using any kind of government financing after executing an Idaho Short Sale. This has been drilled into us by Realtors and mortgage lenders right?

Well along comes FHA with a new announcement. Click FHA Short Sale Guidelines for new purchases to read the sweeping changes.

Actual language from the guidelines reads:
FHA Guidance on Short Sales Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence to take advantage of declining market conditions, and purchase, at the reduced price, a similar or superior property within a reasonable commuting distance. Reference: see 4155.1 4.E.4.g

And here is the FHA allowed exception:
Guidance on Borrowers current at the time of Short Sale Borrowers are considered eligible for a new FHA-insured mortgage if they were current on their mortgage and other installment debts at the time of the short sale of their previously owned property, and the proceeds from the short sale serve as payment in full. Reference "Short Sales" at 4155.1 4.C.2.1

To put this in simple terms FHA is basically rewarding borrowers by allowing them to purchase a home using FHA financing immediately after doing an Idaho Short Sale if they made their payments on time and did not miss any scheduled payments. Many short sale sellers have been advised to stop making the payments on their homes. If a seller desires to pursue FHA financing they may want to reconsider this advice of not making payments based on this new sweeping FHA Guideline.

Borrowers CAN use a new FHA insured mortgage if they were current on their previous loan, all other debts at the time and the short sale was approved by their mortgage lender.

The bottom line is this: missed payments equals no FHA financing for 3 years. FHA will make an exception to the rule if the default was due to circumstances beyond the borrower's control such as the death of the primary wage earner.

Anyone eligible for the Home Affordable Foreclosure Alternative Program (HAFA) would not be eligible for a new FHA-insured mortgage for three years because to qualify for HAFA offers incentives only for seriously delinquent borrowers.

Have questions? Always consult a qualified Attorney and or Certified Public Accountant for advice.

$8,000 homebuyers tax credit extension >> What it means to you

George Tallabas — Sat, 07 Nov 2009 16:05:00 GMT

The house, senate and president Obama recently gave Idaho Real Estate and the nation an early Christmas gift. The popular $8,000 homebuyers tax credit was recently extended. Not only was it extended but it has been expanded and here are the highlights:

The $8,000 homebuyer tax credit that was alive and well in 2009 was scheduled to lapse on December 1, 2009. It has now been extended through the end of June, 2010. Idaho homebuyers must sign a real estate purchase and sale contract before April 30, 2010 and close by June, 2010. The income limits have now been raised: Single buyers can now earn up to $125,000 and still get the full credit while married couples can earn a maximum of $225,000.

The new bill also made more homeowners eligible to claim the credit on their income taxes. First-time buyers, those who have not owned a home in the past three years as defined by HUD still qualify for an $8,000 rebate. Now, those who want to trade up also qualify. Those who have owned a home and have occupied it as their primary residence for at least five years out of the last eight can claim a $6,500 tax credit if they close on a new purchase by the end of June, 2010.

Want to start looking for homes now? go to Idaho Real Estate Search

3 compelling reasons to buy Idaho Real Estate now!

George Tallabas — Wed, 25 Feb 2009 15:48:00 GMT

In my over 29 years as a licensed Idaho Realtor I have never seen a better opportunity for anyone interested in purchasing Idaho Real Estate. Mark my words when I say, those that don't buy Idaho Real Estate in the next few months will kick themselves for not doing it years from now! Here are the 3 main reasons I see for buying Idaho Real Estate as soon as you can:

Interest rates are near historic lows
Many homes are selling at 50-60% of what it cost to build them!
There is a tax credit of up to $8,000 for qualified first-time home buyers

Interest rates have softened

Mortgage rates have been on a little roller coaster ride for most of the past several months but have settled under the 5% mark as of today! When you look at the history of mortgage rates you can clearly see that mortgage rates have rarely been this attractive. When the economy starts to improve and it will, all interest rates will rise to cool inflation. Current mortgage rates are simply too attractive to pass up!

Home prices are falling

Many homes listed in the Intermountain Multiple Listing Service are now selling for 50-60% of the cost to build them. The high number of aggressively priced REO's (Real Estate Owned) bank foreclosures has driven home values down all across the valley. When one factors in the cost of the home and an average sized lot you can find many bank owned properties selling for as little as $50/square foot! This has simply blown my mind when you think of what homes were selling for just 2-3 years ago.

A tax credit gift from Uncle Sam

Unless you are living under a rock you can hardly avoid hearing about the new First-Time Home Buyer Tax Credit recently approved in the "American Recovery and Reinvestment Act of 2009". This new act will lower a tax payers tax liability by up to $8,000. First time home buyers may see benefits years down the road when they purchase a home. If you have any questions regarding this act make sure and see a reputable Certified Public Accountant that can assist you with any questions you may have.

So get pre-approved for a mortgage loan which will give you bargaining power when you find the home of your dreams and then start the search for your Idaho home.

Call me with any questions at 208-880-2333 or email me at george@tallabas.com

Idaho mortgage rates plunge >> Huge one day drop

George Tallabas — Mon, 01 Dec 2008 03:53:00 GMT

Did you know that mortgage rates took nearly a 1% drop last Friday the 28th of November 2008? This is great news for those looking to buy a home. Home buyers now have awesome interest rates to go with incredibly low prices on homes which include record numbers of foreclosures.

The federal reserve announcement last Tuesday the 25th of November, 2008 that it would spend 600 million dollars to buy up mortgage-backed securities and this news sent mortgage rates plummeting nearly 1 full percentage point on Friday, the largest single day drop in years.

One lender in my area quoted as low as 5.25% for 30 year conventional loans and 5.5% for FHA 30 year loans. With mortgage rates hovering in the 6-6 1/2% range for most of the year this is big news and a huge shot in the arm to a struggling real estate market.

I have been saying for months that mortgage rates needed to fall even below 5% to help our Idaho real estate market. With some of the best prices on Idaho homes in years this has to be one of the best home buying opportunities I have seen in my nearly 29 years as a licensed Realtor in the state of Idaho.

There is no guarantee this opportunity of low mortgage rates and bargain prices on homes will last long. Start your search for a home which includes bank owned foreclosures by going to Find My Idaho Home and contact me to get approved for a new loan. I have put my money where my mouth is and have recently purchased a bank foreclosure. Don't wait!

Idaho Real Estate Search >> Now includes Idaho Foreclosures

George Tallabas — Fri, 21 Nov 2008 19:03:00 GMT

Search over 13,000 listings in the Southwest area of Idaho in a new and innovative way. As of November of 2008 there is a new tool that will allow you the user to search all of the listings in the Southwest Idaho Regional MLS including Bank Foreclosures. You can also now search by percentage of price reduction and days on the market. This is totally new and includes searches for residential homes, investment real estate, farm and ranch and commercial real estate.

Not only can you search all listings by every member of the Multiple Listing Service but you can also save your searches and tell the system to email you any new listings that come on the market that meet your criteria.

Simply go to Idaho Real Estate Search and get started searching for your next investment in Idaho Real Estate.

Credit Card changes could harm you >> Borrower beware

George Tallabas — Sun, 09 Nov 2008 00:26:00 GMT

My good friend Gail Barrutia-Kovash with Wells Fargo Home Mortage recently shared some information with me that could have a severe affect on credit card users that neglect to carefully read any notices that are not invoices from their credit card companies.

About 85% of banks (up from 60% in July) reported having tougher lending standards for large and middle-market business loans and about 75% of banks tightened their lending standards for small firms over the same period.

As for consumers, anyone who swipes those credit cards a lot could get a rude awakening. Nearly 60% of banks responding to a recent survey stated they have tightened standards on existing credit card customers. About 60% of bank respondents reported cutbacks on credit card accounts granted to customers who did not meet their credit-score thresholds.

About 20% of all domestic banks reported having reduced credit limits on existing credit card card accounts to prime borrowers. In order for banks to do this they must notify borrowers but how many of us carefully read mail received from our credit card companies that is not a bill? If you are not aware that your credit limit has been reduced and continue charging, going over your new credit limit, it could have a significant negative effect on your credit rating.

By law, credit card companies can change your credit limits but they must notify you. If you are concerned contact your credit card company and find out what your limit is. There is a very good chance your credit limit has been changed, even if you have had a good credit history with your credit card company.

The credit-scoring algorithm looks at the credit utilization rate for each active account and separately, a person's credit usage for several accounts all together. Lets assume you have 4 credit cards with a $5,000 credit limit on each card. Three of your cards have zero balances but on one card you have a $4,000 outstanding balance which represents an 80% utilization rate for that card. Being that close to maxing out that one card will hurt your credit score, even though you have not maxed it out and you have 3 other cards with zero balances.

Find out what the credit limit is on every credit card you own and if at all possible have the limits increased which is hard to do these days. Make sure to keep your spending and usage of these cards under control. Many lending institutions have tightening their belts considerably with the credit crunch which has swept the nation.

Don't assume that since you have always paid your bills on time that everything is business as usual with your credit card companies. Take the time to read all the notices you receive and if you have questions, make sure and contact your credit card companies and find out what your interest rates and credit limits are. You will be glad you did.

George

Reasons to consider Idaho Real Estate to fund IRA's

George Tallabas — Wed, 01 Oct 2008 01:31:00 GMT

I have written about this topic in the past but with the unprecedented buyers market we are currently in this topic certainly deserves to be reconsidered.

Unless one has been living in cave the past two years it is obvious that any retirement account funded by stocks or mutual funds has taken a huge beating. Experts are predicting that investment funds could experience a 25 to 30% loss before the fund/stock markets recovered.

Two years ago I was in a real estate class where the instructor spoke about the popularity of real estate to fund Individual Retirement Accounts. The instructor said that in many parts of the country there are companies that specialize strickly in guiding investors in the use of real estate to fund IRA accounts.

Basically your can take funds from an IRA and roll that money into Idaho Real Estate. You can use the funds to buy single family homes, investment real estate such as duplexes, triplexes, etc. and commercial real estate. You can even purchase an interest in an office building.

With Idaho Real Estate values at the lowest level seen in years and still falling we are seeing incredible opportunities for individuals to purchase real estate at near rock bottom prices and place these properties into your IRA. Even if these real estate investments were to double in value in three to five years, those gains would be allowable. It is very doubtful one can experience this upside appreciation in stocks or mutual funds.

In many areas of the Treasure Valley property values have dropped 25% or more and many foreclosures can be purchased at nearly 70% of what they sold for just two to three years ago. Real estate markets are cyclicle and historically have always rebounded. It is very likely that some great fortunes are going to be made by indivuduals that have the funds to purchase bargain priced real estate that is available today. I have heard several people tell me recently they wish they had money to buy real estate today. It makes a lot of sense to investigate the use of IRA funds to purchase investment real estate that has such an strong upside growth potential.

As always, seek legal and tax advice when considering any investment. As I have mentioned above, there are companies that specialize in the use of real estate to fund IRA accounts and will work closely with your, your attorney and or accountant. If you or your attorney or accountant would like the names of two or three of these companies please contact me and will happy to share some valuable information with you.

George A. Tallabas III
Associate Broker

7 ways to kill the sale of your Idaho home

George Tallabas — Sat, 06 Sep 2008 23:00:00 GMT

The Idaho Real Estate market has changed the past 24 months and no one will argue with that statement. I still find it interesting that many homeowners have not been given good advice in dealing with a challenging market. I hope these tips will shed some light on some very important facts.

1. Statistics are meant to be analyzed. Look at statistics in your area and see what trends are developing. The MLS system in southwest Idaho allows Realtors to create what is called a CMA Summary which is the most important piece of data that can assist in establishing the price of your home. This summary will display how many competing homes are on the market, how many have sold in the past six months, how many are pending sales and how many homes expired or were withdrawn. This summary breaks down the average days on the market, average selling prices and more importantly, the average asking and selling price per square foot which is the most important data. This report is imperative for anyone selling a home. Without this report there is no possible way to understand where the Idaho Real Estate market was, currently is, and where it is headed.

2. Let go of your pride. I have seen too many sellers let their pride get in the way of pricing their home. I once had a couple argue with me that their home was better than any comparable sale I showed in my report and that I had not given them any credit for many features their home had that were superior to any of my comparables. They totally ignored my recommendation and hired a "Discount Broker" and listed their home $20,000 higher than what I had recommended. Over a period of time they lowered the price of their home four times and eventually dropped the price below my original recommendation but by the time they lowered it the final time they had missed the market. Their home never did sell and it has now been two years since they first put their home on the market. You would not argue with your doctors prognoses. Please listen to a professional Realtor that has countless hours of classroom study and experience.

3. Get exposed. The Idaho Real Estate market has changed dramatically over the last decade. You will rarely see a sophisticated buyer look for a home in any kind of print advertising. The National Association of Realtors has reported that 85% of all buyers begin their home search on-line. How do you know if your Realtor has a good intertent presence? Simply go to Google, Yahoo or any other search engine and type in the name of your Realtor. If you see their name smoothering nearly every line on the first and second pages it is a good sign that your Realtor embraces the net. Ask your Realtor how your home will be exposed on the net and have them prove this to you. Forget about asking to see your home advertised in print. Print advertising has nearly gone the way of wagon trains. If your Realtor cannot guarantee you strong internet exposure for your home run as fast as you can Forrest!

4. Make your home easy to show. I can't tell you how many times I read "Shown by appointment only". This is a HUGE mistake! With all the homes on the market the last thing you want to do is to make your home difficult to show. I can assure you that if your home is shown "By appointment only" that it will be passed over by 99.9% of all Realtors. The inventory of homes is at an all-time high and many homes are either vacant or the sellers are motivated and very cooperative. If you can't allow your home to be showed easily I can guarantee you that your home will be in most cases passed by when showing schedules are made.

5. Demand your Realtor gives you Web exposure on Realtor sites! This absolutely shocks me but there are many homes that are submitted to the MLS where the Realtor has removed the listing from "Public Viewing". This is like taking a boat away from a water skier! The skier will simply go no where! What does "Public Viewing" mean? When your home goes into the MLS there are many Realtor sites like Idaho MLS Home Search that allow surfers to find your home. If your Realtor keeps your home from "Public View" it will keep your home from being viewed on literally every independent Realtor site out there. I cannot in my wildest dreams understand why any Realtor would hurt their seller like this but many do it. Make sure your Realtor does not do this to you and make them prove it by giving you a copy of the same MLS printout other member Realtors see.

6. Prepare your home to show. This seems like a no brainer but is often overlooked. When you decide to put your home on the market park across the street and ask yourself what you see. Many of us take for granted coming and going from home. Look at your homes through the eyes of a buyer. If you cannot do this yourself have a family member or friend do it that will be honest with you. "We all live in our home in a certain way but we need to prepare it for the masses when we decide to list if for sale". This means cleaning out closets to make them look bigger, de-clutter and get rid of too much stuff and keep your home light, open and airy. With so many homes on the market you need to set your home apart from the competition. This is easy to do and you will see the benefit.

7. Don't be stubborn with price reductions. Keep in mind you are competing with a lot of "Idaho Short Sales" and "Idaho foreclosures" which are selling at incredibly low prices. Many of these homes are in very good condition and you are competing directly against them. Like it or not these homes are forcing the average price of homes downward. If you have done everything right in marketing your home and it still does not sell in 45-60 days you need to make price adjustments until you attract a buyer. I know this is a tough pill to swallow but this is our current market and this market will be with us for at least two more years. The longer your home stays on the market without selling the more it gets "shop worn" and Realtors and buyers begin to ignore it.

Take these tips to heart and I can assure you that you will dramatically increase your chances of selling your home in a very tough sellers market.

All my best,

George

Idaho Short Sales and Foreclosures - Where are we headed?

George Tallabas — Sat, 23 Aug 2008 02:01:00 GMT

I recently attended a class held by an employee of Indymac Bank that has worked in the Loss Mitigation or "Short Sale" department of Indymac for 18 years. This speaker is the second speaker in 2 months to tell us that ARM loans will continue adjusting through 2010. The instuctor stated that 5/1 ARM loans made in 2005 will have their final reset in 2010. This instructor stated that these resets will certainly cause more homeowners to face a Short Sale or Foreclosure unless something drastic happens in the financial markets.

In an article written by "Market Watch" the article states that in the coming months and years, the credit crunch that's now squeezing mainly the poor is likely to hit millions of middle-class homeowners who took out risky loans during the great housing boom early in the decade. The article goes on to state that more than 1 million families will loose their homes in the next few years by one estimate and another study predicts 2.2 million foreclosures will hit our market in the months and years to come. Read The True affect of ARM Loans on the Housing Market.

I subscribe to a service that emails me all the NOD's or "Notice of Defaults" which is the beginning of foreclosure. These recordings are increasing in numbers weekly and have been doing this for most of this year. All this supports what Market Watch is reporting.

I encourage anyone that is uncertain about their loan or feels uncertain about their ability to make their future payments to not wait to take action. I am a "Certified Short Sale Specialist" and my goal is to assist homeowners that are struggling with their home loans. In the class given by the employee of Indymac I learned how to expidite Idaho Short Sales to give you the best chance of executing a successful Short Sale in Idaho. I can answer all your questions about every facet of the Idaho Short Sales Process.

If you are looking to buy a home the choice of affordable homes available to you is currently the best I have seen in my 28+ years as a real estate broker in Idaho. There are over 900 homes in the Southwest Regional MLS of Idaho that are identified as Idaho Short Sales and the number of foreclosures are growing as I have referenced above. Contact me at the phone numbe or email below or begin your own search at Idaho Real Estate Search

Call me at 208-880-2333 or email me at george@tallabas.com with any questions.

All my best

How to find your next Idaho Real Estate bargain

George Tallabas — Sun, 10 Aug 2008 03:14:00 GMT

Idaho real estate prices seem to be falling almost monthly. Whenever I am asked to do a search in any price range I find that now as many as 7 out of 10 homes I show are either Idaho foreclosures or Idaho short sales. In the peak year of 2005 it was almost unheard of in the Treasure Valley area of Southwest Idaho for homes to be priced less than $100/ft. and many quality homes were well over $100/ft. To calculate the price per square foot simply take the asking price of a home and divide it by the square footage of that home.

Fast forward to 2008 and we are now seeing many foreclosure homes and even some short sale listings that are priced in some cases as low as $65/ft. which has not been seen since the 1980s! When I first saw homes hitting the mid $60/ft. range I was in shock and could hardly believe what I was seeing.

So how do you find these Idaho home bargains? I have a system that allows me to input everything you are looking for in a home. In addition to many search criteria I can also program my system to search only homes priced from say from $60/ft. to $80/ft. I can then set my system up to have every listing that meets your criteria automatically emailed to you the moment that new listing hits the market.

When I say every new listing I mean just that. I am a member of the MLS or "Multiple Listing Service" and I have access to every Idaho real estate listing that every member office submits to the MLS system. As soon as a member Realtor from any office in the valley lists a home meeting your criteria you will be sent an email with that new listing attached.

What does this service cost? The good news is that this service is totally FREE! Yes, there is no cost to you for me to set you up with this service and the service can be cancelled at any time. This service has helped many, many buyers find great bargains in today's Idaho real estate market.

You can do your own search at any time by going to Idaho real estate search or you can email me at george@tallabas.com or call me at 208-880-2333 and ask me to get started looking for your next Idaho real estate bargain.

Are zero down programs over? Find out which program is being eliminated

George Tallabas — Sat, 02 Aug 2008 16:00:00 GMT

I had lunch with one of my mortgage lender friends this past Wednesday and I asked her if there were anymore Zero Down mortgage loans left. She said the only true Zero Down program remaining is the Ameridream Program which offers down payment assistance to qualified borrowers. However, she said that the Ameridream Program as we know it here in Idaho is due to expire the end of September, 2008. She said that if a loan is not closed by September 30, 2008 there will be no more Ameridream down payment assistance as we have known it.

This is the result of the reigning in of zero down programs across the country due to over zealous lending practices of the recent past years that in part has led to near record foreclosures and short sales across the country. Therefore if you think you qualify and would like to find out if you qualify for an Ameridream Program please contact me soon.

Home prices have fallen drastically in the past year and there are some amazing homes available at prices no one imagined. I recently sold a bank repo that sold for $135,000 in 2005 for $97,000. Many opportunities like this are out there so quit procrastinating and waiting for prices to hit rock bottom. In my opinion, people that wait for prices on any product to hit rock bottom usually end up missing out on great opportunities.

Begin your Idaho Real Estate search here and contact me at 208-880-2333 to find out what kind of financing you qualify for. Opportunities like this many never be seen again.

Communication and problem solving is the key

George Tallabas — Sun, 06 Jul 2008 00:14:00 GMT

I am beginning to believe strongly in the saying "The more things change, the more things stay the same". This is certainly true when it comes to good old fashioned communication and knowledge. A few years ago a local farmer called me and asked if I would be his Idaho Realtor. He informed me that he was unhappy with his current Realtor and that I came highly recommended. After a discussion with my broker (the "other Realtor" was an agent in my office!) I decided to work with this farmer.

Three months into my listing contract with this farmer he calls me one day out of the blue to thank me for always returning his calls and for calling him on occasion just to see how he and his family are doing. At first I thought this was a joke. After all, doesn't every Realtor return calls and call their clients to see how they are doing? My client explained to me that he had worked with several Realtors in the past and I was the first to return his calls promptly and the first to call him regularly to see how his family is doing.

This farmer not only listed many farms with me but went on to refer me in excess of 10 million dollars worth of real estate business and continues to do so. Just two weeks ago I had another seller that had worked with many Realtors in the past tell me he was listing his home with me for the very same reason. He said he liked the way I communicated with him and he also had never seen this before.

About two months ago I took my favorite sunglasses into the local Walmart store because one of the screws would not tighten. After working on them for about fifteen minutes the lady assisting from the optical department came back and told me the screw was stripped and nothing could be done. I was really bumped because these sunglasses were my favorite. I didn't get rid of the sunglasses. I continued to wear them but they began to fit worse and worse.

Today I went back into Walmart to the very same optical department and a different lady helped me. I simply told here that one of the screws would not tighten properly. She told me to give her some time and come back. I finished my shopping and came back. To my pleasant surprise this wonderful lady had replaced the screw and the new screw worked fine. She also tightened the other screws and cleaned my glasses for me. My sunglasses now work beautifully!

Here were the very same pair of sunglasses and one lady could not or would not find a solution. Another lady accepted the challenge with a smile on her face and fixed my favorite sunglasses.

I am finding today that many Realtors that entered the real estate business the past few years entered real estate for the wrong reasons and are now leaving the business in near record numbers. The majority of the Realtors that remain are hanging on by a thin thread. What many of these Realtors don't do is 1) Communicate correclty with their clients and 2) Find creative solutions for their clients real estate needs. If it isn't an easy transaction they simply give up.

I have already explained how easy communication is. It is not rocket science and is what each and every one of you want. Even though I have been in real estate for over 28 years I am adamant about education and take numerous real estate classes annually. I have already this year alone taken four valuable classes that have clearly helped me with new knowledge to deal with the current real estate market.

I was raised on a row-crop farm here in Southest Idaho where challenges were very common. We always had to find a sulution on the farm and never were allowed to give up. "Thank you Dad". I love challenges and love to find solutions for those challenges. I can guarantee you communication and I guarantee you that if there is a solution for your problem I will consider it a challenge and will not give up until I have found a solution for you. This is why business is good for me in a year where success in real estate is very rare.

I thank all my customers and clients for making this a great year for me and I am anxious to prove to you that I consider your business a privilege and an honor.

Your Idaho Realt Estate Professional

How to pay off your mortgage in half the time

George Tallabas — Sun, 22 Jun 2008 01:34:00 GMT

With all the talk about escalating gas and grocery prices consumers have had to learn to tighten their belts and budget their money they were not acustomed to being concerned with in the past. Many families have made some tough decisions to deal with the changing economic landscape. When our backs are against the walls it is amazing what we can do. It is amazing what we can do when our backs are against the wall.

I have certain clients that have purchased two homes from me over the past 28 years I have been in the real estate business. What is really interesting about these clients is that they have paid off both homes they purchased from me in 7 years each. When I asked them how they did this they said they simply added an additional $300-400 to each monthly payment and took half of thier income tax return each year and applied it to thier mortgage.

Did you know that if your take a $200,000 mortgage financed at 6 1/2% for 30 years the monthly payment would be $1,264.14. If you apply an additional $450 to each monthly payment you would pay off that same loan in 15 1/2 years. If you added an additional $1,000 to $1,500 each year from your tax returns you would accomplish what my clients did.

You say you don't have an extra $450 per month? I think this is because a lot of homebuyers tend to purchase homes that are more than they need and it is a struggle to make the monthly obligations.

What I am proposing is that everyone lower their sights and buy a more conservative home. It is amazing what our grandparents and parents lived in and made a go of it. It seems like the the attitude of "competing with the Jones' next door" has gotten out of hand over the past 20 plus years. I have seen more couples buy homes that are what they yearn for, rather than being what they need.

With the Idaho Real Estate market being what it is, there are some great buys available that we have not seen in years. My proposal is that you buy one of these great Idaho Short Sales or Idaho Foreclosures and obtain a mortgage that is well within your means of making each month. Do what my clients did and you will be amazed at your accomplishment. Please don't make the mistake of refinancing your home every few years like many do. Simply stick to your plan of paying off your current mortage as quickly as you can.

You will feel great when you make that last mortgage payment and your family will have the security of knowing how much extra money is available each month now that your home is free and clear. This isn't a popular theory with many because we are supposed to be good "consumers" always refinancing our homes and buying the next boat, harley or some other toy. Not only will you feel good about doing this but you are teaching your kids a valuable lesson regarding money management

Begin your Idaho Real Estate search here