Posts Tagged ‘mortgage backed securities’

Labor Day

September 6, 2016

While you are enjoying the last official BBQ of summer please don’t forget the American worker.

The first Monday in September is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the workers. Workers have made the strength, prosperity, and well-being of our country. They are the backbone of this great country.

The form that the observance and celebration of Labor Day should take were outlined in the first proposal of the holiday — a street parade to exhibit to the public “the strength and esprit de corps of the trade and labor organizations” of the community, followed by a festival for the recreation and amusement of the workers and their families. This became the pattern for the celebrations of Labor Day. Speeches by prominent men and women were introduced later, as more emphasis was placed upon the economic and civic significance of the holiday. Still later, by a resolution of the American Federation of Labor convention of 1909, the Sunday preceding Labor Day was adopted as Labor Sunday and dedicated to the spiritual and educational aspects of the labor movement. (adapted from US DOL)

Soon it will be time to winter fertilize and re seed the lawn. Trim the hedges and possibly the trees. What else could you, my dear reader be looking at? You could clean and touch up. Make certain the gutters are free of debris, if the caulking around the windows, is cracked or missing fill it in or replace as needed. When is the last time you cleaned your dryer vents? Is the dryer taking longer and longer to dry the clothes. Perhaps the vent is clogged.

With the weather being what it is time to think about painting. If you are wanting to sell in spring you may not want to wait for spring. It is amazing to me how many people will spend hours washing their car, every week in some cases, and not spend any time taking care of their home. So be a Dagwood, work in the yard, have a dagwood for lunch that day as you enjoy the fruit of your labor as fall approaches. And enjoy a good game of football, whichever you like.

Parts of this article came from original columns from 2009 and 2010. My goodness, have I been writing that long. Certainly doesn’t feel like it. All the Best Richie Rich

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What to Ask A Home Inspector

August 18, 2016

Home inspections are a critical part of the home buying process. Don’t skimp out here. Inspectors are now marketing directly to buyers trying to get more business. Here are some questions to ask a home inspector prior to hiring them. HUD (Housing Urban Development) finds it so important they have a list of questions you can use. The Feds believe it is so important that when you get a loan from them there is a whole page as to why you should get an inspection. Here are my thoughts.
Prior to hiring:
1- How much does it cost? Let’s just get this out of the way. Simple enough most are around $300 bucks however depending on the extras the price goes up. Extras Rich? Yes, well, water and so on. If your home is larger than there can be additional fees as well.
2- Can I attend the inspection? Most inspectors cringe here and ask that you join them at the end of it. I say if you want to be there with the inspector and crawl the attic and crawl spaces have at it. If not then meet them there and go over the findings.
3- Are you insured and what does it cover? Follow up with if something pops up that should have been caught what remedies do you offer? Some have insurance for this; some offer a warranty, others you get the fee back you paid.
4- How have you been trained, what kind of experience do you have? How many inspections have you performed in the last year? Ask to see their last report, look for buzz words, see below. These are great qualifying questions.
5- Look at the report, what are major areas of concern? How easily can these be indentified? Some inspectors say all the window seals have failed (Buzz Word), rather than a particular window has moisture, sweating or fogging. Seals fail, is there water? Apparent break in attempt (buzz buzz) rather than door is damaged where lock is. Is there a police report or did the previous person forget their keys. My all time favorite? MOLD ooh, mold can be everywhere in all homes. Some mold is the bad kind; some is not and has been there for years.
6- How bad is it… really? A good home inspector should be able to discuss the report with you and offer insight on to how bad the damage could be. If they say you need to hire a specialist for everything they noted why hire them to begin with.
Of course you could ask your Realtor for a recommendation. Chances are they know a couple of good ones. All the Best Richie Rich

STEPS TO BUYING YOUR NEW HOME

August 11, 2016
  1. MEET WITH A TRUSTWORTHY REALTOR. The truth is no matter which Realtor you choose you must make a connection with that person. 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?
  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 loan officer will ask you to fill out an application:
  • If applying for a VA loan, please bring a copy of your DD-214,
  • Be prepared to account for the source of funds of your down payment and closing costs.
  • Bring federal tax return (2 years), if self employed also bring profit and loss statements, and balance sheet for the last

two years.

  • Alimony and child support information (divorce decree for verification) may be required.
  • Last 4 pay stubs
  • Current statement(s) from banks, stock funds etc

 

  1. Find a home, write an offer, and write an earnest money check. EARNEST MONEY: This      represents your sincerity in the attempt to purchase and is refundable if the offer is not accepted. This money is kept in a trust fund account and is not turned over to the seller until called for by the contract. You will receive credit at closing for it.

 

  1. Once the purchase agreement has been accepted by the seller, the lending institution you have chosen will be contacted to process a new loan. An appraisal will be ordered.

 

  1. Escrow will be opened at a title company. An escrow is an arrangement in which a disinterested third party (Title Company) holds legal documents and funds on behalf of buyer and seller, and distributes them according to the buyers and sellers instructions.

 

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

 

  1. You will be asked to name an insurance agent as a policy will be necessary prior to closing escrow.

 

  1. With the help of your lender and the title company they will provide an approximate dollar amount that you will need prior to the close of escrow.
  2. Moneys required at the close of escrow (down payment, closing costs, etc.) should be in the

form of a cashier’s check.

 

  1. 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.

all the best, Richie Rich

DIY

August 4, 2016

I decided to try and tear the roof off of my home so the roofer can install it. I wanted my kids to help to learn from the experience. Ooops I did not really think this thru. See when I was a kid I did things like this however I forgot I have a bad back, no roof for me and my daughter is recovering from a knee injury, no roof for her. So my son is up there by himself. I accept what he has done and say good job. No one is there to show him how to do it. I couldn’t ask for a better kid. A quick reach out to friends and no one is available. I guess earning some summer money is not worth the trouble. If only there was an app to do this. Hmmm
So what’s a guy to do? Well I will hire some labor. I managed to find Paul and he is amazing as is Ashlee at Labor Ready. Thank you to both.
I had a problem and I solved it. It did not go as planned. It cost more and there was room in the budget for it. What a great learning opportunity for myself, my clients and most importantly my family. They learned Dad is not so perfect, can apologize and does not give up when we hit a road bump. Many people today expect life to be perfect and nothing should go wrong and if it does somebody owes them for it. Wrong on all accounts. Life happens and our attitude dictates how we feel. I could have stomped my foot and yelled at the world. What good would it do? Everyone around me would be angry and not as effective. I choose to accept what goes wrong and find a solution. Not a blame. So keep in mind that as you DIY things around the home it is good. Anticipate there could be problems and be ready with a plan. When I planned the roof repair I anticipated that we may need help. I had a plan, I followed the suggestions of others and it worked out. I was open and ready when we hit a snafu. It is a good thing. The experience for my kids is awesome. I could not be prouder of them and the lessoned learned. And I get a new roof. The added expenses would be the same if someone else did it. So go ahead and do it yourself. Stay calm and the rewards are awesome. All the Best Richie Rich

What Warm Weather

March 3, 2015

The weather certainly has been a touch warmer than normal. What to do? Well, there’s always yard work. Especially if you are selling your home or thinking of selling. We had an early snow and there were lots of leaves trapped and they should be removed. Weeds are starting to sprout, as well as some springtime flowers. You may want to stop in at your favorite garden shop and see how to get rid of the weeds and protect the flowers. There are also some flowers you can plant that should survive this time of year.

You want to get your lawn ready to go. Seed, fertilize etc. If the house needs paint, you can start scraping it. I personally believe the weather has to be above 50 degrees to paint; however, there are other thoughts as well. If the fence needs repair, you can do that now.

On my own home, I am moving a fence line. I dug, okay okay, my son dug 5 post holes by hand and commented on how easy it was. I told him because of the wet weather digging is easier. By the time I ran to the hardware store for poles and cement, he was ready. I saved the cost of a power posthole digger. Plus, the manual labor was not so hard for a teenager to make him resent it. How lucky am I?!? Now that it is somewhat rainy and cooler, I can hang the new fence and stretch it without waiting for the posts to be installed – 1 month ahead of schedule.

Also, builders are sinking foundations in the ground. That is always good to see. New home construction always adds money to the economy especially with good paying jobs. Plus, new home buyers also need to purchase things such as blinds, carpeting, lawn and garden items, new furniture and the list goes on and that all helps the retail industry.

So enjoy the warm weather while it lasts. Get out in the yard now, so you can relax and enjoy it during the late spring/summer time.  All the Best Richie Rich

Too Much Information

February 18, 2015

Wow, there is a lot of information available to the consumer these days. All sorts of search engines to help you find your dream home, determine how much your home is worth, send out automatic updates, etc. Talk about information overload! I guess the hardest part is to figure out which system to trust. Say what Rich? Which system to trust? Oh yes, I say.

In the technology world, we search for ways to deliver clean information to the consumer. Clean information in real estate means current and standardized ways of reporting. Not spam that is intended to separate you from your money and/or be sold to those in the real estate industry.

So Rich, how do we find this clean information? Great question. Many of the MLS’s have their own website that has the most current information. Here in the Treasure Valley it is http://www.intermountainmls.com/listings/searchlistings.aspx

If I was looking for a home in another area I would begin with Realtor.com. They have requirements that the local MLS’s must adhere to. Generally clean information with advertising thrown in.  As my search intensified, I would find a local Realtor and see what websites they would recommend. Many people use Zillow. The information there can be good, however, Zillow allows consumers to put their own listings in there, such as for sale by owner. What’s wrong with that Rich? Well my friends, all that glitters is not gold. There are actually people out there who post false information trying to get your information and your money. Well imagine that. Craigslist, you ask? One rental scheme would actually advertise, “Don’t tell the Realtor,” suggesting the complicity will get you a better deal. Oh my. That’s not to say all is bad. Just be cautious.

Automatic updates, I love them. I use them to review homes for my clients before sending them on. However, they are only as good as the search parameters used to set them up. Some search engines send what they think is close to what you are looking for. You sign up by yourself and then you get the new listings as soon as they hit the market. At times, this can be overwhelming and supply TMI. Other times, very few homes are found due to the number of “must haves” that have been entered.

So what’s a consumer to do, Rich? Find a reputable website, double check the information with a Realtor and make informed decisions, not overloaded decisions. All the Best, Richie Rich

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


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