Contrary to popular opinion, this does not extend the deadline for purchasing a home; it extends the time for closing your transaction.

To get the credit, you must have been under contract (accepted offer) by April 30, 2010.

If you were under contract by April 30, 2010, you now have until September 30, 2010 to close your transaction.

Seems that hundreds of thousands of home buyers were struggling to close their transactions by the previous June 30, 2010 deadline and that resulted in Congress passing legislation for the extension.

The reason why hundreds of thousands of home buyers were struggling?

Well, um . . . . . . seems they bought short sales ! (duh)

On March 31^st, the Fed will stop buying mortgage-backed securities.

The Fed has purchased $1.25 TRILLION (yes, Martha, that’s a “T”) of MBS in a successful effort to keep mortgage interest rates low and thereby “stimulate” the economy.

(dunno about you, but I’m not feelin all that stimulated!)

No one knows for sure, but removing this “liquidity” from the mortgage market is forecast to result in mortgage interest rates rising to as high as 6% by the end of 2010.

On a $200,000 mortgage, going from a 5% to a 6% interest rate increases your monthly payment by $125, which totals a stunning $45,000 over the term of a 30-year mortgage.

But, if you only keep your home for the typical 7 years, that 1% increase in your interest rate will only cost you $10,500.

On April 30^th, the $8,000 first-time homebuyer tax credit ends.

This incredible (free money to first-time homebuyers!) program has helped thousands of Boise first-time homebuyers, with roughly 65% of all Ada County home sales occurring in the under-$200,000 price range.

On April 5^th, FHA upfront mortgage insurance will increase.

It will rise from the current 1.75% to 2.25% of the loan amount, which will increase the buyer’s closing costs by $1,000 on a $200,000 loan.

On April 5^th, FHA monthly mortgage insurance will increase.

This will also increase the borrower’s monthly payment.

The bottom line?

Waiting for “the bottom” could end up costing you dearly because your increased financing costs could easily exceed what you (might) save by waiting for a lower price.

If you’re buying a home for the long term as your personal residence, this may be as good as it gets.

Are  you a serious first-time homebuyer who would like some straight talk about buying now?

Call or e-mail me and let’s talk!

I will tell you the truth and help you achieve your dream of home ownership without the usual sales talk.

Source: National Association of Homebuilders.

Source: National Association of Homebuilders.

Recently I was giving an out-of-town buyer a courtesy tour to educate them about the Boise area, in anticipation of their possible move to our area.

They had told me to they were going to relocate and that Boise was high on their list of relocation alternatives, but needed to visit and learn more about the area.

So, I agreed to give them one of my comprehensive local tours ~ a good faith gesture for someone who might become a future client.

I had been in contact with them for several months, had answered many questions by e-mail, and had arranged to show them around, plus show them a few homes.

They said they wanted a newer home, so I searched MLS and found some good examples.

As I pulled up in front of the first new home, they proclaimed “We don’t want to be in a subdivision!”.

Well, gee, folks, all of our new homes just happen to be in subdivisions!

In fact, when you stop and think about it, everything has been subdivided since the day our planet originated.

So, I left them at a local restaurant for lunch while I went back to the office to search MLS  so I could start over and show them old homes in old neighborhoods.

I retrieved them from the restaurant, resumed showing them homes, and while we were in the first home the wife answered a cell phone call.

I thought it odd that she moved to a corner of the kitchen and turned her back, and then I overheard her furtively say “Yes, we are looking for 1,500 to 2,000 square feet with four bedrooms and a three-car garage″.

Stunned, I realized that she was actually talking to another agent while I was showing her and her husband homes!

Kinda tacky, huh?

Kinda like being out on a date and having your date take a call from someone else in the middle of dinner, right?

I should’ve just taken them back to their hotel at that point, but instead, I showed them the remaining homes I had planned to show them.

When I finally took them back to their hotel, I asked them if they had talked with any other agents.

They admitted that they were going to be working with two other agents while they were in town.

They didn’t appreciate it when I explained that all agents work from the same MLS listing inventory and that no experienced, competent agent would give them the time of day if they learned that they were working with multiple agents.

Loyalty matters when you’re in a business where you only get paid for a closed transaction.

I try to give everyone a chance, but every now and then, someone gets to me.

• These are the people who have no compelling reason to buy.
• These are the people who look for the worst in the housing market news.
• These are the people who will only buy if they can “steal” a home for less than (they think) it’s worth.
• These are the people who are waiting for “the bottom”, not realizing that they will miss it because you can’t identify the bottom until after it has occurred.
• These are the people who fear commitment and avoid making a buying decision.
• These are the people who view their home as an investment that should always appreciate.
• These are the people who will sit in a dismal apartment and rent as they await “the bottom”.
• These are the people who refuse to talk with a lender and get their financing pre-approved.
• These are the people who will not sign a Buyer Representation Agreement and want to work with multiple agents; not understanding that we all have the same MLS listing inventory to show them.
• These are the people who will buy from a FSBO, thinking they are getting a “deal” because no Realtor^® was involved (and often overpay).
• These are the people who doubt everything I say.
• These are the people who think I am just out to “close the deal”.

If you are a #1 or #2, I am currently accepting motivated, qualified buyers and would like to talk with you.

• These are the people who are well-intentioned but not yet ready to buy.
• These are the people who are looking ahead at their future and trying to figure out what they want to do.
• These are the people who may need to work through some challenges, such as selling their present home or completing their job transfer, before they are ready to buy.
• These are the people who need more information in order to make an informed decision.
• These are the people who need to buy their first home or their next home for a variety of valid reasons.
• These are the people who want a larger or smaller home.
• These are the people who want to move closer or farther away from their children or parents.
• These are the people who want, need, and appreciate my help and support while they work through the home buying process.
• These are the people who are loyal to me and willing to work in partnership with me.

I often work with buyers like this for a year or more to help them achieve their housing goals.

1) Those who must buy.

• These are the people who want to own their own home for the right reasons.
• These are the people who view their home as a place to live, not a “financial investment” to be used as their own personal ATM.
• These are the people who realize that real estate is cyclical and that their home will not always appreciate in value.
• These are the people who wouldn’t dream of being renters!
• These are the people who don’t want to worry about their landlord selling their rented home or losing it in foreclosure.
• These are the people who want a home of their own where they can raise their kids, punch their own nail holes in the walls, paint their kids rooms any color they want, have a dog or three, and build rich family memories over the years.
• These are the people who eagerly ask me questions and hang on every word of my recommendations.
• These are the people who ask me if they can sign a Buyer Representation Agreement to ensure that I will work with them so they can benefit from my knowledge and experience.
• These are the people who willingly get totally pre-approved for their financing before we look at homes.
• These are the people who view me as their partner; not an adversary who is out to “close the sale”.
• These are the people who become lifelong friends after our transaction closes.

Much of the Boise area has an underlying layer of clay just beneath the soil’s surface.

That layer of clay prevents surface water from being absorbed, and can result in that water moving in “sheets” above the layer of clay.

Sounds kinda technical, right?

Well, here’s what it means (in plain English) to you as a homeowner.

If your home doesn’t have proper drainage, you can end up with moisture in your crawl space and perhaps mold.

Mold is the kiss of death in real estate.

Once you have mold in your home, you must disclose it (material fact) to all future buyers, and most of them will run away after they hear about it.

And, if you file a water damage claim with your insurance company, your home will likely get listed on the national CLUE database, which can result in not being able to get insurance in the future, which may result in future buyers not being able to obtain financing when you want to sell.

Not to mention that it’s very expensive to remediate mold problems these days.

Moisture in crawl spaces can be avoided through some common-sense practices, including:

Watering Your Lawn Sensibly

I often see homes where the lawns are being over-watered.

It’s often best to water once/day at 6:00 a.m., with less water.  You don’t need to water two or three times a day for 30 minutes per station.

Directing Rain Water Away From Your Foundation

Here are some examples of downspouts that I see:

Least Desirable

Better

Best

The last option is the best one with the rain water being piped to a dry well (a pit full of drain rock that penetrates the layer of clay) away from the home.

It’s also desirable to have full gutters on your home to avoid rain water running directly off the roof and being absorbed into the ground adjacent to the foundation.

Here’s an example of a home without full gutters that is more likely to cause moisture in the crawl space.

BTW – you’ve seen those chain downspouts, right?

Well, I have them on my home and I’m way kewl, but they don’t work very well.

The water doesn’t follow the chains when it rains hard, and the gushing water blows the bark/rock away when it finally hits the ground.

Hope this helps ~ now get your mind out of the gutter, will ya?