Posts Tagged ‘happy new year’

Voting on the West Ada School District Bond Issue

March 8, 2015

The bond vote is Tuesday March 10th. Please get out and exercise your right to vote. I have heard several opinions on the matter. For the nays, the Board is top heavy (too much management), how come they don’t take pay cuts. The teachers make way too much. We can have bigger class room sizes. For the ayes, we need the rooms, kids don’t even get lunch because they run out, and teachers deserve raises.

All of the above are passionate discussion points. However I believe we should looks at other issues. Since this is my column, I choose to share my thoughts on it. I know I know You can’t wait to hear.

Despite what some elected officials say our schools are doing poorly in national rankings. I have a hard time thinking a major business will move here when the kids will need to attend the worst schools in the nation. Rich, what is your point? It has been proven that smaller class sizes result in higher learning. Vote Yes!

A trusted friend that works with children on the local and national level once told me that prison population estimates are based on what is going on in 3rd grade. Good gravy!!! I think smaller class sizes result in children at risk having a better chance of success and staying out of prison. Vote Yes!

Eagle Middle School is 250 students over capacity. Lake Hazel Middle School is 452 students over capacity. Heritage Middle School is 162 students over capacity. New construction in these areas is going well. New construction pumps lots of money into high paying jobs in economy and is helping the country get out of the recession. More homes mean more students, Vote Yes!

The bond will add 2 middle schools, 1 elementary and finish the remodel at Meridian High School. 1 middle school and the elementary are south of I84, the other middle school will be in Star. All underserved areas of our community that are experiencing growing pains. Vote Yes!

I have walked the halls of Meridian HS. It desperately needed a face lift. How a room, building look have an effect on the student and their ability to learn. Vote Yes!

The levy rate decreased this year. If the bond passes the levy rate remains the same. SAY WHAT RICH, we saved money? The rate does not increase? Damn straight! Vote Yes!

All the Best Richie Rich

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Happy Valentine’s Day

February 13, 2015

It is that time of year, Valentine’s Day. Rich, I hear you say, what does this have to do with real estate? Well, I’ll tell you. I am trying to decrease sales of homes from couples who forget Valentine’s Day. Or, at least some of them who forgot. Fellas?

Do you recall when you first met your bride? You would do anything to see them. Sit next to them, actually listen to what they have to say? And now, you sit on your lazy boy, by yourself and fall asleep mid sentence. Romantic, you ask? Yes, I say. It is truly romantic as you are headed into true love, each of you accepting the other for who they are. So, that is why we have Valentine’s Day. A time to show the world, and I mean their friends, how much you love your spouse, partner, significant other, etc.

I feel it is my mission to make every person who works with, and knows my bride, to want to go home and slug their partner right in the nose!

So Rich, what have you done? Ooh, love this question. I have had quartets show up and serenade her, roses delivered one at a time with a different message on each card, flowers, candy, balloons, gifts from the kids, dinners both out and cooked by me, out for lunch, and over decorate her work place, to name a few.

Hey Rich, what are you doing this year? Not telling, I say.  Remember, I want to have everyone else go home and be mad at their partner. However, here is an idea. Valentine’s Day is on a Saturday. Going to be hard to get a reservation this late, so what about starting on Friday? A night out, a weekend getaway, flowers to the workplace, a stretch limo picks you both up before you both go out and then drives you home after the night out. Get the family together Saturday for brunch. Oh, the list goes on and on.

We should tell those we love, that we love them all the time. Telling someone you love them, and meaning it, is a huge morale booster. When my children get me oh so angry and we argue, at the end of it I tell them I love you and I expect to hear it back from them. The message is simple. We can disagree, fight; yet no matter what, I will always love you. I do the same with my bride. I tell her I accept her as she is and I am not asking her to change. Learning to accept others as they are can be a tough thing to do. Happy Valentine’s Day, from my home to yours, All the Best Richie Rich

2014 Numbers Are In

January 26, 2015

So readers, how did housing do in 2014? Not too bad, I would say. Let’s take a look.

Existing Home Sales in Ada County

Sales were roughly the same compared to 2013. We were down 0.52%. We sold 6,295 homes in 2014. In 2013, we sold 6,328. The cost of existing homes went up with the average price up 3.79% and the median price up 5.37%. In 2014, the median price was $193,000, average price $229,751. In 2013, median price was $183,170, average price $221,361. In a normal market, we appreciate 4%. So, we are right in line with a normal market. Feels good after a few crazy years.

New Construction Sales in Ada County

New construction took a hit in the sales department, being down 10.21% in Ada County. In 2013, we sold 1,636 new homes. In 2014, 1,469 new homes were sold.  The price of new construction went up sharply however. In 2014, the average price was up 13.53%, the median was up 12.81%. I suspect some of this price increase was based upon the cost of materials, which went up in quite a few sectors

Days On Market DOM

In addition to being asked how much is my home worth, I am often asked how long will it take to sell my home. Of course, I tell them it has to be priced right and it will sell. So let’s look at the numbers for a well priced home. For residential resale in Ada County, the average DOM was 52 days in 2014, 51 days in 2013, which coincides with the sales numbers being the same. In new construction 2014, DOM was 73 days compared to 53 days in 2013. This also matches the market sales numbers.

All in all, 2014 was a good year. Things were normal. There is something to be said for being normal.

If you would like to see how your area did or research other numbers, please visit: http://publicstats.intermountainmls.com/static/Reports/Ada/2014/2014-Ada.pdf

I thank the Local IMLS for their support in putting these numbers together for us and making them available. Here’s to 2015!  All the Best, Richie Rich

Real Estate in 2015

January 12, 2015

It is that time of year again, time for the Rich Nesbit forecast on the real estate market. Where will the market go? Let’s take a look.

Home Prices: I believe that this year home prices will show a comfortable increase of 4%. On average, that is the rate of growth in Idaho for real estate. Last year’s results are not yet in, however we did not reach the 20% appreciation mark overall. Resale residential will be around 5-6% growth and new construction will be around 13-14%. Increased inventory levels slowed the pace.

Housing Inventory: Levels will remain near normal. Supply should stay around 4-6 months.  A normal market is around a 3-6 month supply. We were near normal for most of the year in 2014.

Interest rates: Rates show they will continue to stay low. If Treasury notes drop to 1%, look for interest rates to drop as well. Lots of thoughts as to why it is low and why it may go lower. More on that later.

Unemployment: Jobs are doing well for the most part here in Idaho. For those of us with friends and family in the Oil Fields, such as North Dakota, if crude continues to drop then there could be layoffs of high paying jobs. Canada has seen some of this already. Companies here in the States say they are convinced they can continue even if Oil hits $40 dollars a barrel; however, only time will tell.

The real estate market is affected by so many more factors than the few listed here. I believe we will have a stable market, with some growth. All the Best Richie Rich

Happy New Year

December 30, 2014

As 2014 comes to a close, I am reminded of several great accomplishments. The Coaching System I use suggests there are 5 Circles that help determine who we are. I will share them here in no particular order.

Personal – I started working out again. I strength train and do aerobics in the pool as well as Yoga Namaste

Family – My kids are growing up so fast. Both teenagers; one driving and dating. A new life experience that I am enjoying. My wife graduated from College. Thank you Boys and Girls Club and University of Phoenix. We were blessed by you many times over and hope to pay it forward as well.

Spiritual – My relationship with my Lord and Savior Jesus Christ has grown deeper this year. I choose not to share much in this area.

Financial – Now that we are out of the depression/recession that has been rocking our universe, I find I am struggling less and living more. What’s not to love?

Business – This has many faces. I still write for the Valley Times. Thank You, Frank. You are an awesome editor and offer great support. Thank you, my dear readers. I am always amazed that people read my articles and send me messages about them. Or talk to me about them when we meet. In real estate, I again set new personal bests for me. Thank you all for your help and support. I also brought on an assistant. Pam, you do not realize how much your help means to me. Thank you so much. In addition to having a Coaching, system I have brought on a personal Coach. Robin [sic] the goal has been set with you. Now let’s achieve it. In the community, I was asked to serve as a Commissioner on The Historic Preservation Committee. I trust and I pray that I serve the people well. Thank you, Mayor Tammy, for asking; Lila for suggesting me, Jaycee and Bill for your advice and help, and the rest of the Commissioners and Chairman for your support, advice and direction. What a great Team I am included in.

Oh?? What’s that you say? My New Year’s Resolution? I choose to use my coaching and training to reach new heights. To give me the time and ability to do the things in life that are fun and exciting to me, while running a successful business. To live …the good life. All the Best Richie Rich

STEPS TO BUYING YOUR NEW HOME

June 28, 2013

1.    MEET WITH A TRUSTWORTHY REALTOR. The truth is no matter which Realtor you choose you must make a connection with that person. You must be on the same page as far as that Realtor’s availability. Ask them if they are a full time Realtor or if they earn their living another way. How much time do they have to work with you? When are they available to go look at homes? How many closings have they had in the last 12 months?

 

2.    LENDERS: After selecting the right Realtor for you have the Realtor help you choose a lender. The Realtor should be able to suggest several types of loans to you that may meet your needs. The lender will help decide which works best for you. The lender and the Realtor need to work well together so that when an offer to purchase a home is made the terms are correct to help you get the home you want. The loan officer will ask you to fill out an application:

 

3.    EARNEST MONEY: When writing an offer to purchase a property, you will generally need to include a personal check, a cashier’s check or cash (all known as earnest money). This represents your sincerity in the attempt to purchase and is usually refundable if the offer is not accepted. An earnest money deposit of at least $1000 is generally required. This money is kept in a trust fund account and is not turned over to the seller until called for by the contract.

 

4.    Once the purchase agreement has been accepted by the seller, the lending institution you have chosen, with your realtor’s help, will be contacted to process a new loan and appraisal.

5.    Escrow will be opened at a title company. The title company should be a neutral third party that gathers the legal documents and funds on behalf of buyer and seller, and distributes them according to the buyers and sellers instructions.

6.    A home inspection will be conducted. If necessary repairs will be negotiated and completed

7.    You will be asked to name an insurance agent as a home owner’s policy will be necessary prior to closing escrow.

 

8.    The title company, with the help of your lender will provide an approximate dollar amount that you will need prior to the close of escrow.

 

9.    If you plan to close escrow by mail, please be sure to allow plenty of time to mail all documents so they arrive at the title company before escrow is scheduled to close.

 

10.  Before moving in, be sure the utility companies have been notified and deposits made, if necessary.

 

11.  Moneys required at the close of escrow (down payment, closing costs, etc.) should be in the

form of a cashier’s check. Personal checks may be accepted however they could delay closing.

 

12.  When all the necessary papers have been signed and the moneys received, the documents are

recorded. The escrow officer will make the necessary monetary disbursements Once documents have been recorded, title to the property (ownership) has changed hands.

 

 

Boise area home prices are going up; with mortgage rates starting to rise it’s a GREAT time to buy a home in Idaho! I can help you find the homes you are looking for in Boise, Meridian, Star, Eagle and more! Visit my website to start searching on your own or contact me to get the help of a qualified Idaho REALTOR® ! I specialize in homes in Meridian but can help you find the perfect place no matter what city you want to live in!

Hey Rich, What do You Think?

June 6, 2013

Would anyone be surprised to hear that sales are up? Prices are up? Nope I doubt it. So sales are up and prices are up. Basic law of supply and demand, buyers are buying, inventory is low. We have a 3 month supply of homes available based upon sales as of April 30th. Existing home sales are down 2.5% and new construction is up 33%. (Year to date totals compared to last year.) The pent up demand for housing has lowered us from a 4 month supply back to 3. A normal market is about a 6 month supply of homes.

So Rich, enough of the numbers, what do you think? I think home prices and supply will level off. I believe sellers are now waiting to see how high prices will go. I understand the thought. One seller asked me if prices will come down. Possibly.  I think we will see a 5% appreciation for the year with some small hiccups as inventory levels change.

I also believe investors will back off as prices compared to rents and cash flow will not make cents (pun intended). A rental home that sells for $150,000 and rents for $950 dollars has a cash basis of about 5%. That same home is now selling for $160,000 – $165,000 which equals about a 4.5% return.  Not very motivating for some investors.

I think interest rates will go up. This will also keep prices down. Buying power is diminished as interest rates go up. I think people will still need places to live and land is a limited commodity. We aren’t making any more.

I also think lots of other things however they are not in an area I specialize in so I will hold these thoughts back. As always give it six months and we will see if I am correct. Happy House Hunting, All the Best Richie Rich

 

Boise area home prices won’t stay this low; with mortgage rates still at historic levels it’s a GREAT time to buy a home in Idaho! I can help you find the homes you are looking for in Boise, Meridian, Star, Eagle and more! Visit my website to start searching on your own or contact me to get the help of a qualified Idaho REALTOR® ! I specialize in homes in Meridian but can help you find the perfect place no matter what city you want to live in!

Million Dollar Homes Are Being Sold

April 18, 2013

Wow, that’s an exciting headline. Million dollar homes, homes; plural that is, are being sold. Right here in Ada County. Since January of this year three homes priced a million dollar plus have sold here. Three more have accepted offers and are pending. Only one of the homes that sold was a short sale. None were a bank owned property Woohoo. One a month is pretty exciting. More importantly we having been selling about 1 per month since January of 2012. Of those two were a short sale.

Why is that exciting you ask? Well I’ll tell you. For every two home sales we have (based on a sales price of $173,000) we create 2 jobs. It is great to see that much money being re circulated in our economy. How much money you ask? A bunch, heck two jobs were created. For those who want to crunch the numbers at the end of this article is the math presented by the National Association of Realtors.

When a home is sold in Idaho:
– $10,386 of income is generated from real estate related industries.
– $5,647 is spent on consumer items such as furniture, appliances, and paint service.
– $2,437 is spent on remodeling within two years of home purchase.

(NAR, see link below)

What’s it like in other States ? Look here: http://www.realtor.org/reports/state-by-state-economic-impact-of-real-estate-activity

Impact of Single Existing Home Purchase

Median Price $173,000

Real Estate   Industries Related   Industries
(Furniture/Gardening)
Local   Economic
Multiplier
New Housing
Construction
Inducement
Total
Contribution
$15,570 + $5,235 + $9,987 + $27,738 = $58,529

GDP can be measured in three ways, one of which is the sum of all income1. Using the income concept and comparing GDP2 to the number of payroll workers in the US3, we find that the average income per employee was $113,000 in 2010.

This is an over-estimation of salary income since income can be earned from profits, rents, and other sources, however this gives us a ceiling to earnings per worker. Survey data show that full time US workers earned a median of $42,400 and average of $57, 4004 in 2009.

Putting these figures together reveals that every two home sales generate one job.

Income from   two home sales: $117,058 Income from   two home sales $117,058
Income per   worker (GDP/worker): $113,000 Income per   worker
(Average Earnings):
$57,400
Workers per   two home sales: 1.04 Workers per   two home sales: 2.04

 

Impact =>   2 home sales = 1 job Impact =>   2 home sales = 2 jobs

1 GDP can also be measured using what is called the expenditure approach or the value added approach. See
http://www.bea.gov/national/pdf/nipa_primer.pdf for details.
2 GDP ranged between $14.4 and $14.9 trillion in 2010 per the Bureau of Economic Analysis.
3 Payroll employment in 2010 ranged between 129 and 130 million per the Bureau of Labor Statistics (BLS)
4 BLS/Census Current Population Survey’s Annual Social and Economic Supplement 2010

 

Boise area home prices won’t stay this low; with mortgage rates still at historic levels it’s a GREAT time to buy a home in Idaho! I can help you find the homes you are looking for in Boise, Meridian, Star, Eagle and more! Visit my website to start searching on your own or contact me to get the help of a qualified Idaho REALTOR® ! I specialize in homes in Meridian but can help you find the perfect place no matter what city you want to live in!

Whose Market Is It?

April 11, 2013

Buyers market, sellers market, whose market is it? The housing recovery is underway and the pendulum is moving. For some time it was a buyers’ market. Now with inventory levels being so low some believe it is a sellers’ market. So which is it Rich, buyers or sellers market?

I say it is still neutral and everything is negotiable. I believe that when one side or the other dictates terms and conditions on a regular basis then it is a market controlled by the buyer or seller. In the market today things are still negotiable. If the seller or buyer does not like the terms or conditions then they negotiate. So what do the numbers say?

Homes are selling in a matter of hours with multiple offers. That is a number that cannot be measured. However appraisers are reluctant to give higher prices. Tie. Since January in Ada County  as of 3/22/13 we have sold 1303 homes of which 178 were short sales and 81 were bank owned. This means we are selling about 375 homes per month not including short sales.

Currently we have 1945 active homes available for sale. Of these 329 are short sales, 67 are bank owned. This means we have a little over 4 months supply. I believe a normal market is about a 6 month supply. We are close. Tie

I also believe we have multiple offers for homes because there is a pent up demand for homes due to the previous shortage. Buyers are not over anxious however they are willing to negotiate. Sellers that are willing to negotiate, sell their homes. It seems to me that the current market is almost a normal market.

I like the idea of a balanced market. A stable housing market helps a recovery. We have all seen what a runaway market can do. UGH!

So keep looking for homes. So keep selling homes. I believe that negotiations are better than dictations. Happy House Hunting, All the Best, Richie Rich

 

Boise area home prices won’t stay this low; with mortgage rates still at historic levels it’s a GREAT time to buy a home in Idaho! I can help you find the homes you are looking for in Boise, Meridian, Star, Eagle and more! Visit my website to start searching on your own or contact me to get the help of a qualified Idaho REALTOR® ! I specialize in homes in Meridian but can help you find the perfect place no matter what city you want to live in!

So You Want to be a Realtor?

March 22, 2013

Selling real estate is easy, or can be if you know what you are doing. I had an opportunity to present my chosen career on what it takes to be a Realtor. More than just a license I’ll tell ya that.

To make $30,000 in commissions  you need an average sales price of $125,000. You only need to sell 8 homes a year and receive a full 3% on everything you sell. The average Realtor sells 1-2 homes per year.

Then there are expenses you need to pay. Here are some.

The least expensive office fee I know of is $50/month Office Fees: $50/month x 12 = $600

This office also charges a Transaction Fee: $450 x 8 = $3,600

MLS Fees: $66/Q x 4 = $264

ACAR Dues: $635/year

E/O Insurance: $280

Phone: $100/month = $1,200

Continuing Education & Licensing: $300 year

Total Minimum Expense Yearly: $6,879

Net Commission: $23,121 which is about $12/hr and that’s the best case scenario.

Notice there are no charges for TAXES (yes you will receive a 1099 and you will need to pay taxes) gas, lunches, dinners, business cards, websites, printing etc.

There is an award that some Realtors have called the Million Dollar Club. Means that they sold a total of $1,000,000 in real estate in 1 year. I have one of these awards. If you look at the numbers above you’ll agree that Million Dollar Club means you are broke, as a Realtor.

Selling Real Estate is a business and should be treated as one. You should have a budget, profit and loss statement, estimated taxes, a business model and plan at the bare minimum. Part time businesses are hard to run and even harder to be successful in. Not only will you suffer so will your clients.

The hardest part of being a Realtor is finding business. To successfully buy and sell real estate for a living you need to find a renewable source to obtain buyers and sellers from. Mom and Dad can only buy so many homes before they run out of cash. Yup, selling real estate can be easy, doing it for a living… All the best Richie Rich

 

Boise area home prices won’t stay this low; with mortgage rates still at historic levels it’s a GREAT time to buy a home in Idaho! I can help you find the homes you are looking for in Boise, Meridian, Star, Eagle and more! Visit my website to start searching on your own or contact me to get the help of a qualified Idaho REALTOR® ! I specialize in homes in Meridian but can help you find the perfect place no matter what city you want to live in!


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