Boise Real Estate Blog

Appraisals:101

Consumers often believe that appraisals are the absolute final word about a property’s value.

If the appraiser says it’s worth X, then it surely must be worth X.

Those of us in real estate know that appraisals are subjective and that they are simply one person’s opinion of a property’s value.

Skilled, experienced appraisers know many subtle ways to “adjust” to comparable sales to come in with a value equal to the sales price.

And, appraisers are under enormous pressure to “bring in the number” on appraisals because they know they won’t see any more appraisal business if they start screwing up loans for the lender giving them their appraisal assignments.

Some lenders are now trying new ”AV” (automated value) appraisals in an effort to speed up loan processing and remove the human variable from the appraisal process, but automated value appraisals are also subject to inherent inaccuracies.

The best indicator of a property’s value is what Realtors^® learn in Real Estate:101 ~ it’s worth what a willing buyer will pay for it.

Value remains undetermined when money doesn’t change hands.

July 11th, 2009 Posted in Inside Real Estate |  Print This Post | No Comments »

The Five Stages Of Seller Grief

Those of you familiar with the work of Elisabeth Kubler-Ross will recognize the parallels from her extensive research on grieving in the following post.

With great respect (and apologies) for Elisabeth Kubler-Ross, I have taken many liberties to correlate her research with the stages of grief many sellers experience in a declining market:

Kubler-Ross established Five Stages of Grief: (as experienced by sellers)

DENIAL

• This can’t be happening ~ the market can’t possibly being going soft when I want to sell.
• My home is the nicest home in my subdivision.
• I know my home is worth more than the identical home that just sold down the street.
• I am not going to give my home away.
• I do not have to sell.
• Geez ~ that first Realtor^® I spoke with about listing my home sure was negative!

ANGER

• What’s wrong with all of those idiot Realtors^®?
• What’s wrong with all of those stupid buyers who won’t look at my home?
• Why doesn’t my Realtor^® get more people to look at my home?
• Why do prospective buyers walk in and out of my home in five minutes?
• Why have people pulled 400 flyers from the flyer box, yet no one looks at my home?
• Why doesn’t someone just make an offer?
• Why doesn’t my Realtor^® hold an open house every day of the week?
• Why doesn’t my Realtor^® run a full-page ad of my home with me standing in the driveway?
• I need to change Realtors^® and find one who is more “positive”!

BARGAINING

• Please ~ just bring me an offer and I will negotiate!
• Perhaps I should listen to my Realtor^® and reduce my price?
• I promise to be good if someone will just buy my home before it goes into foreclosure.

DEPRESSION

• No one is ever going to make an offer on my home.
• If I had listened to my first Realtor^®, I could have sold my home for more than I will get now.
• Maybe I need to reduce my asking price for the 4^th time.
• I may be stuck here forever.

ACCEPTANCE

• I am ready to swallow my pride and take a lower offer than the one I refused six months ago.
• Please Lord; just bring me an offer so I can get out of here?
• My first Realtor^® was right ~ a good price is the best marketing tool!

July 10th, 2009 Posted in Phil's Phunny Stuff |  Print This Post | No Comments »

Boise Real Estate Sales- June 2009

Here’s the price distribution of June’s Ada County real estate activity:

Price Range                # Listings          % Of Total

• $69,999 and under                         3                        .52%
• $70,000-$89,999                          4                        .69%
• $90,000-$99,999                          2                        .35%
• $100,000-$119,999                   36                        6.3%
• $120,000-$159,999                 176                    30.0%
• $160,000-$199,999                 158                     27.4%
• $200,000-$249,999                  82                      14.2%
• $250,000-$299,999                  38                         6.6%
• $300,000-$399,999                  47                        8.2%
• $400,000-$499,999                  16                         2.8%
• $500,000 and over                    17                         3.0%

Total Closed Sales                                   579

The numbers above confirm that most of the action remains in the lower price ranges.

• 65.3% of June’s sales were under $200,000
• 86.1% of June’s sales were under $300,000.
• Only 5.8% of June’s sales were over $400,000.

Statistics pertain to June 2009 Ada County closed transactions of single-family homes on lot/acreage.

July 7th, 2009 Posted in Boise Market Stats |  Print This Post | No Comments »

July 2009 "Phriends Of Phil" Featured Business

This month’s featured business is Sid Nield, my State Farm Insurance agent.

Sid has been my insurance agent for the past nine years and has helped me resolve some pretty bizarre claims when my kids were younger, (like the time my daughter’s Honda was nearly destroyed by a U of I fraternity’s exploding ceremonial cannon!).

Sid’s extensive experience helps him provide valuable insights into the complex world of insurance.

Sid is honest, reliable, and responsive.

Give him a call at 938-5351 for exceptional insurance service.

July 6th, 2009 Posted in Phriends Of Phil |  Print This Post | No Comments »

Boise, Idaho Real Estate Stats – June 2009

Here’s a snapshot of June’s real estate activity for Boise, Idaho (Ada County):

July 5th, 2009 Posted in Boise Market Stats |  Print This Post | No Comments »