Meridian Idaho Home Buyers: Higher Interest Rates

Meridian Idaho Home Buyers & Higher Interest Rates!

Meridian Idaho Home

Yup, they’re already (gasp!)  up to about 5% for 30-year fixed rate loans now!

Is that the end of the world?

If you’re concerned about rising interest rates, please allow me to put things in perspective.

Plainly stated, 5% mortgage rates are not the end of the world!

Some real estate “experts” would have us believe that our real estate market is in imminent danger of collapsing due to these higher interest rates.

During my 46 years in real estate, I’ve NEVER seen a real estate market collapse with interest rates anywhere near 5%.

In 1982, 21% rates were a big problem.

Today, 5% interest rates are little more than an annoyance.

During most of my real estate career, interest rates have varied between 8% to 12% and everyone survived.

Underlying our present concern about rates is the fact that a large segment of our population has never experienced realistic interest rates.

They think 3% rates are the new normal.

3% interest rates are NOT normal!

Fact is, those 3% interest rates were artificially created by The Fed to help the national economy recover from the 2008 financial collapse.

We’re now in a very strong, growing economy that’s causing the Fed to raise interest rates to avoid higher inflation.

Consider the difference, illustrated below, between a 4.5% loan vs. a 5% loan when purchasing a $300,000 home:

  • $300,000 purchase price
  • $60,000 down payment
  • $240,000 loan (30-year, fixed rate)
  • Principal/interest payment with 4.5% interest rate = $1,216.04
  • Principal/interest payment with 5% interest rate = $1,288.37
  • Principal/interest payment difference = $72.33

For the average $300,000 home buyer, that isn’t enough to make or break the budget.

Higher prices, caused by ongoing low listing inventory, and rising building costs, are far more of a threat to buyers than 5% interest rates.

View All Meridian Idaho Homes For Sale

Read More About Meridian, Idaho

View The Tour of Meridian Video

 

Please follow and like us:

Why Californians Move To Eagle Idaho

If you’re reading this, there’s a good chance you’re in California and considering a move to Eagle Idaho.

move to eagle idaho

Here are 9 reasons why Californians move to Eagle Idaho

1) Quality of Life

We enjoy a mild four-season climate in the Treasure Valley.

If you don’t like humidity, you’ll appreciate our dry high-desert climate.

We lack the excitement of natural disasters such as hurricanes, tornadoes, tsunami’s, monsoons, and earthquakes.

In most winters, we get a few light snowfalls that often melt by afternoon.

Hot weather around here is 100 degrees with 8% humidity for a couple of weeks each summer.

Mosquitoes don’t like our dry climate!

2) Lower Cost of Living

Our housing remains affordable when compared to other areas of the country.

The median home price for Eagle is currently $475,923.

Another option is nearby Meridian, with a median home price of $337,895.

You can buy a really nice home here with our attractive home prices!

In newer residential developments, we enjoy inexpensive untreated irrigation water for our landscaping (often included in HOA dues).

Lower utility costs (see below).

3) Good Schools

Our West Ada School District is responsive to our strong growth and building new schools to meet the need for more classrooms.

Our schools are funded by taxpayer-approved bonds that require a two-thirds majority for passage vs. funding from the state’s general fund.

In Idaho, school budgets are controlled by taxpayers instead of bureaucrats.

4) Lower Taxes

Our local and state taxes are lower than California’s taxes because we have less government.

Our state sales tax is 6%.

Our property tax rates vary, depending on a number of factors, but you can usually estimate your property tax to be around .75% of your home’s value.

If you occupy your home as your primary residence, you will receive a tax break with the Idaho Homeowner’s Exemption.

If you buy a new home, it will be taxed as an undeveloped lot initially.

When you trade cars, you pay sales tax on the difference between your trade-in and your new car (not on the entire purchase price).

Idaho vehicle license fees are often a fraction of those in California.

5) Less Government

Our legislature actually completes all of its business in two to three months each year.

Believe it or not, Idaho’s state constitution actually requires a balanced budget each year.

In years when tax revenues exceed expenditures, our state government must figure out how to handle pesky budget surpluses.

6) Lower Utility Costs

Some of my California buyers doubt me when I explain our low utility costs.

Most of our electricity comes from inexpensive hydropower that’s provided by numerous dams in the mountains and along the massive Snake River.

Utility costs for gas and electricity are often half of what they cost in California.

7) Less Traffic

Yes, we have some traffic.

But, it’s probably nothing compared to what you’re used to in California.

I often tell my clients “we have so much traffic that you may not get through an intersection on the first light!”

Our highway districts are proactive about widening roads in anticipation of current and future transportation needs.

Our local roads are managed by the Ada County Highway District.

Our state roads are managed by the Idaho Department of Transportation.

8) Friendly People

Many of my clients are pleasantly surprised by our friendly people.

It’s common for people to hold doors open for others, smile, and speak to you when they don’t even know you.

It’s a unique experience for Californians to stop for a 4-way stop sign and have other drivers motioning them to go through the intersection first.

9) Idaho Is Gorgeous!

You can be in the mountains, surrounded by tall pines, alongside the Payette River Scenic Byway within 30 minutes of Eagle Idaho.

Breathtaking Redfish Lake, near Stanley Idaho, is three hours from Eagle with a stunning alpine lake that’s surrounded by the Sawtooth National Recreation Area and the rugged Sawtooth Range.

Scenic McCall, Idaho is about two hours north of Eagle, on the shores of Payette Lake.

Nearby national forests provide ample camping opportunities within an hour of Eagle.

Bogus Basin Ski Area is 45 minutes from Eagle with ski terrain for all skill levels.

For more information on the wonders of Idaho, check out https://visitidaho.org!

___________________________________________________

Thinking about your own move to Eagle Idaho?

Call me at (208)938-5533 or e-mail me for your FREE RELOCATION PACKAGE!

View All Eagle Idaho Homes For Sale

Tour of Eagle Video

Eagle Idaho Community Profile

Eagle Idaho Country Lifestyle Video

Tour of Meridian Video

Meridian Idaho Community Profile

Tour of Boise Video

Boise Community Profile

Snake River Valley Wine Region Video

Please follow and like us:

Hire One Buyer’s Agent When You Move To Eagle Idaho

If you’re planning to move to Eagle Idaho, you’ll eventually need a buyer’s agent to represent you.

Move To Eagle Idaho

In 46 years of real estate, I’ve seen home buyers make every conceivable mistake when selecting their buyer’s agent.

Working concurrently with more than one agent is one of the biggest mistakes you can make.

In fact, it’s nothing less than an exercise in futility.

Why?

Because all agents have the same listing inventory to show you!

Further, most experienced agents won’t work with buyers who are “playing the field” and working with other agents concurrently.

That’s because those agents have learned that it’s usually a waste of time to work with a buyer who isn’t willing to work exclusively with them.

If you work with multiple agents, you won’t get good service from any of them.

It’s also likely that you’ll end up working with a struggling new agent who’s willing to work with anyone.

You’ll get the best service by committing to work exclusively with one competent, professional buyer’s agent.

That commitment will include entering into a Buyer Representation Agreement with your buyer’s agent.

The Buyer’s Representation Agreement doesn’t require you to buy anything.

It simply states that you will buy through your buyer’s agent IF you buy something.

Most experienced agents (me included) will want to have a detailed upfront conversation to understand your situation.

Then, if you and your agent decide to work together, it’s time to enter into a Buyer Representation Agreement.

The next step is to work in partnership with your buyer’s agent to find the right home.

______________________________________________________

Looking for that competent, experienced buyer’s agent?

  • I’m your “No BS” buyer’s agent!
  • I will tell you the truth about your transaction, even if it isn’t what you want to hear.
  • I live in Eagle, Idaho and know the local market like the back of my hand.
  • I limit my clientele to no more than four clients at a time to ensure a high level of personal service.
  • You will NOT be handed off to a junior team member (because I don’t have, or need, a team!)
  • I will represent only YOU in your transaction (I don’t offer dual agency representation).
  • My 46 years of real estate experience is your assurance of solid representation.
  • References enthusiastically provided upon request!

Call Me Now @ (208)938-5533, or e-mail me!

View All Eagle Idaho Homes For Sale

View Eagle Idaho Community Information

View Tour of Eagle Video

View Eagle Country Lifestyle Video

View Boise River Greenbelt Video

Please follow and like us:

California Buyers Moving To Meridian Idaho

If you’re reading this, there’s a good chance you’re one of many California buyers moving to Meridian Idaho.

Moving To Meridian Idaho

It’s also likely that you haven’t been here, and/or have limited knowledge of the Meridian Idaho real estate market.

So, you do what everyone does; you visit the real estate portals in search of your dream home.

You look at the eye candy on those websites, thinking that you can find the perfect home on your own.

Your first mistake, when visiting those sites, is to request more information from an “Expert Agent” (or something similar) prominently displayed on various listings you see.

Doing so will result in your contact information being provided to that agent.

You’ll become a “lead” and get added to the agent’s “drip list” with daily impersonal e-mails and calls.

If you (foolishly) do that with several agents, you can expect your inbox to be full each morning.

It’s important to understand that the “Expert Agent” actually paid the real estate portal for preferential placement on search engine results pages.

Unfortunately, the only criteria for becoming an “Expert Agent” is the ability to pay $500 (usually much more) per month to the real estate portal in return for preferential placement in the search results.

The real estate portals make their money by selling leads to real estate agents.

They’re in the lead generation business; not the real estate business.

Five Challenges When Searching Homes On The Internet

You Don’t Know The Area

If you haven’t been here, and/or don’t know the area, subdivisions, builders, schools, traffic, shopping, and other important information, you lack the context required to understand the homes you’re viewing.

You’re Looking At Eye Candy

Every home can be made to look good on the internet.

Have you ever heard of Photoshop?

Online real estate listings often include photos that have been cropped, altered, and enhanced to the point that they no longer resemble the home being displayed.

Many listings include photos that are similar to the one displayed in the listing.

When you see the words “photo similar” online, understand that the photos are photos of a different home.

You Can’t Determine The Condition/Quality

If you aren’t familiar with the Meridian Idaho area, and the location of the listing you’re viewing, you can’t determine the condition or quality of a property.

  • Is the home in a flood zone?
  • Is the home beneath the approach/departure paths for the Boise Airport?
  • Does the home back to a road that will soon be widened?
  • Does the home back to an undeveloped area that could become apartments, starter homes, a shopping center, or a WalMart?
  • Does the property have high-tension power lines behind it?
  • Does a neighbor have six barking dogs in their yard?

What’s Wrong With The Property?

It’s extremely rare to see a listing that mentions anything negative about a property.

  • Has the property been a rental during its entire lifetime?
  • Has the home been remediated for mold?
  • Is this a “flip” remodel, done on the cheap, and “lipstick on a pig”?

I’ve never seen a property online that disclosed the existence of fragrant cat pee in the carpets!

You Lack Full Information

You can’t see agent remarks that are withheld from public viewing.

The agent remarks often reveal the true character of the property.

You also lack access to the Seller’s Property Disclosure, which is submitted to MLS but not published on the real estate sites.

I can see things that you can’t see!

The Easy Way To Find The Best Meridian Idaho Home

The easy way to find the best Meridian Idaho home is to let me find it for you!

  • Call me when you’re ready for “No BS” real estate!
  • I’m more of a consultant than the typical real estate agent.
  • Each client I accept becomes a consulting project.
  • I work with no more than four clients at a time.
  • I inform and advise vs. the usual “close the deal” approach to real estate.
  • I advise my clients to avoid properties that don’t meet my stringent criteria.
  • My 46 years of real estate experience is your assurance of exceptional, responsive service.
  • References cheerfully provided upon request!

Sound interesting?

Give me a call at (208)938-5533 or e-mail me and let’s talk.

View All Meridian Idaho Homes For Sale

View Tour of Meridian Video

Boise River Greenbelt Video

 

Please follow and like us:

Buyer’s Remorse Can Be Expensive

I rarely experience a buyer who gets buyer’s remorse.

buyer's remorse

But, I dealt with that experience a couple of years ago with clients who were concurrently sellers and buyers.

They listed their home with me at a price above what I recommended and the house needed some repairs that they didn’t want to make.

Their attitude was “we like it the way it is and the buyers can take care of that stuff!”

Like many sellers, they were concerned that their home would sell before they could find their next home.

Then, I suggested they check with their lender to see if they could qualify to buy their next home without first selling their present home.

To our surprise, their lender pre-approved them to buy without first selling.

Armed with their pre-approval, I went to work and found the perfect home for them in a beautiful development, backing to common area, a three-car garage, and everything they wanted.

Their offer was accepted and we got through the home inspection, repairs, and appraisal easily.

We were set to close on a Monday.

Then, my client called me the preceding Friday and said “we’ve decided we’re not going to close!”

They were not only unwilling to close; they had no remaining contingencies in their purchase and sale agreement, and wanted their earnest money back because they had “changed their minds”.

My clients even called their lender and fraudulently tried to get them to withdraw their loan approval to create an “out” and avoid closing.

To make things more interesting, the sellers had purchased a new spec home from a builder that was scheduled to close concurrently with the sale of their home.

That builder, thinking he had his spec home sold, had gotten a construction loan and started another home.

Further, the sellers had already moved most of their possessions out of the home, thinking that we were going to close in a couple of days.

Can you spell d-a-m-a-g-e-s?

The sellers and their listing agent were understandably enraged.

If you’re a buyer and unsure about the consequences of changing your mind and failing to close, you should pay close attention to the language in your RE-21 Purchase and Sale Agreement that explains the consequences of defaulting on your contract.

Changing your mind (aka buyer’s remorse) can quickly become very expensive.

Among other things, you can lose your earnest money, become liable for all transaction costs incurred during escrow, and also become liable for damages in a costly lawsuit.

In case you’re wondering, my buyers finally came to their senses and closed.

The home they purchased has since appreciated substantially.

I released them from their listing, they listed their previous home with another agent, and it eventually sold for the exact price I had recommended.

They made several more mortgage payments before it sold, they paid the buyer’s closing costs, and had to install a new roof to achieve a sale.

Now you know what can happen when you get buyer’s remorse.

View All Boise Idaho Homes For Sale

View All Meridian Idaho Homes For Sale

View All Eagle Idaho Homes For Sale

Please follow and like us: