Eagle, Idaho Real Estate Stats – May 2014

Here’s a snapshot of May’s activity for Eagle, Idaho real estate:

Eagle, Idaho Available Homes

  • # Available: 398
  • Average Asking Price: $533,121
  • Median Asking Price: $449,900
  • Months’ Supply: 8.7

Eagle, Idaho Pending Sales

  • # Pending: 119
  • Average Asking Price: $414,164
  • Median Asking Price: $379,900

 Eagle, Idaho Closed Sales – May 2013

  • # Closed: 73
  • Average Sales Price: $404,383
  • Median Sales Price: $359,000

 Eagle, Idaho Closed Sales – May 2014

  • # Closed: 62
    % Change: -15.1%
  • Average Sales Price: $371,750
    % Change: -8.1%
  • Median Sales Price: $347,900
    % Change: -3.1%

Data taken from Intermountain MLS on 6/9/14 and pertains to Eagle, Idaho single-family residences on lot or acreage.

Data does not include condominiums or townhomes.

Months’ Supply = available listings divided by average monthly closed sales for the past six months.

 

Boise Homes: Why Sales Fall Through – Part III

(This is the final post for Boise Homes: Why Sales Fall Through) 

Liens

A lien is an obligation to pay someone.

And, that someone just might be the IRS who has placed a lien for delinquent income taxes on the home you’re trying to buy.

Trust me, the IRS knows how to get their money and they will make sure they don’t release the tax lien on the home you want to buy until they know how they are going to get paid.

And, that usually means that they will want all of their money from the seller before they will let the deal close.

If the seller doesn’t have enough net equity to pay off the lien, there’s a good chance the deal will collapse.

Be sure to check the preliminary title report to check for liens.

Easements

An easement gives someone other than the owner a right of use for the subject property.

If you are the seller and you have been driving across neighbor Fred’s property to get to your home for the past few years, but don’t have a legal, recorded easement to do so, you could see your deal fall through because most buyers want to know for sure that they can get to your home after they purchase it.

Other easement issues can include sewer, gas, or water lines beneath a home, power lines overhead, etc.

The first thing you should do when you get your preliminary title report is read it carefully to see if there are any easements that will affect your right to use the property.

Over-Encumbered

Over-encumbered is real estate speak for “the seller owes more than they will net from the sale”.

If you’re the buyer and think you’re going to move in as planned, you’ll probably be in for a surprise when the escrow officer receives the lender’s payoff amount and everyone realizes the seller can’t close without bringing money to the closing.

If the sellers are upside down on their loans, there’s a good chance they won’t have the money to write a check to get close escrow.

Obviously, you’d think the listing agent would have asked the seller how much they owed when she was listing the place, but many agents don’t like to ask such “personal questions” out of fear they might not get the listing.

Once again, check the preliminary title report to confirm the amounts owed against the property.

If the property is worth $200,000 and the seller owes $250,000, they’re going to have to write a check to close escrow.

Most sellers cannot or will not do so.

If they are unable to cover the shortage, you are then in a “short sale” situation where the lender(s) are in control.

 

 

Boise Homes: Why Sales Fall Through – Part II

(continued from “Boise Homes: Why Sales Fall Through – Part I”)

Incompetent/Inexperienced Agent

I have always believed that it takes a new agent about 100 closed transactions before they have a good grasp of the inner workings of real estate..

If you are working with a newly-minted, perky, think-positive agent who’s undergoing on-the-job-training with your transaction, be prepared for little things like missed deadlines, not understanding the consequences of unreturned phone calls, and various and sundry legalities that are critically important to getting to closing.

It doesn’t cost any more to work with a seasoned professional who has a lot of experience.

Insurance Issues

The property in your transaction may be difficult to insure, especially if it’s in a rural area without fire protection, or in an area that has a high loss history.

You could also have difficulty obtaining insurance if a claim for water damage or mold has previously been filed on the subject property.

All lenders require insurance, so no insurance = no financing = no deal unless the buyer is paying cash.

And, those cash buyers will still want insurance and not proceed if they can’t get it at an affordable rate.

Appraisal Issues

Lenders require an appraisal as part of lending money.

The purpose of the appraisal, which is usually done by an appraiser chosen by the lender, is to confirm that the lender is not lending too much money.

Appraisals are “opinions of value”, prepared by human beings, and are by their very nature, subjective.

Comparable sales play a huge role in the appraisal process, so if you are a seller who’s selling your “Shenandoah Plan” for $300,000 when the last four Shenandoah’s went out at $275,000, you can count on your appraisal not coming in at $300,000 in the current lending environment.

Yeah, I know ~ your Shenandoah is way nicer than everyone else’s Shenandoah, but the appraiser may not understand that.

If your home doesn’t appraise for the sales price, the buyer will want you to adjust your sales price to the appraised value.

If you refuse, your buyer will walk and you will get to start over and see if you get luckier next time.

(Stay tuned for Part III) 

Boise Homes: Why Sales Fall Through – Part I

Most buyers and sellers of Boise homes are usually surprised when their transaction falls through, but the underlying reasons are often predictable for any agent who has been in real estate for awhile.

Here are a few of the most common causes:

Financing Issues

If you’re a seller, you should have your head examined if you take your home off the market without proof that your buyer’s financing has been pre-approved.

That means you need a firm loan commitment letter, subject only to clear title and an appraisal.

Anything less is a “Swiss cheese” (full of holes) pre-qualification letter that is next to meaningless.

Pre-qual letters are easily identifiable because they include a long list of conditions that must be met before the lender will approve your buyer’s loan ~ little details like is the buyer still alive, credit, employment, which mattress the down payment is coming from, etc.

Inspection Issues

There are at least two negotiations in every transaction.

The first one is where you negotiate the purchase/sale of the home.

The second one is where the buyer tries to renegotiate the deal to offset defects the home inspection revealed.

If buyer and seller fail to agree on needed repairs or offsetting compensation, you can end up with a dead deal.

Buyer’s Remorse

aka: “the buyers changed their minds”.

Buyers, especially in a down-trending market, sometimes realize they paid more than they should have and just walk away from the transaction.

Since most contracts include a variety of contingencies (escape clauses), they can usually get away with it.

The worst that can happen is that the buyers might lose their earnest money, which is why it’s a good idea for sellers to insist on substantial earnest money during purchase negotiations.

If I’m representing the seller, I want a lot of earnest money with the offer.

If I’m representing the buyer, I want to get my client’s offer accepted with as little earnest money as possible.

Seller’s Remorse

aka: “the sellers changed their minds”

It is more difficult for a seller to get out of a deal (assuming a well-written, tight contract) than it is for a buyer.

Nonetheless, sellers do sometimes balk at closing and about the only remedy is for the buyer to sue the seller for specific performance ~ a costly and time-consuming endeavor that usually results in a lost sale and the buyer purchasing another home.

Third-Party Influences

Good examples include attorneys reviewing contracts, depending upon Aunt Mildred to cough up the down payment, hoping and praying to receive an insurance settlement, awaiting an inheritance, etc.

Third-party influences are often deal-killers.

(stay tuned for Part II)