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October Real Estate Statistics for Billings, MT

Laure & Steve — Tue, 29 Dec 2009 17:39:30 +0000

Please follow the links to the statistics for October 2009. As you can see we are still behind last year in number of homes sold and dollar volume. However for September, October and November we had more units close than we did last year. This could be attributed to the first home buyer tax credit and the new tax credit for move up buyers. The full picture on that won’t become apparent until the tax credits expire next year. Hopefully by then the economy will be closer to recovery.

Handout October 2009

MLS Area Charts October 2009

MLS Statistics October 2009

Closed Units by Month – 2007-2009

Billings Real Estate: Should I Take My Home Off the Market During the Holidays?

Laure & Steve — Wed, 02 Dec 2009 16:51:48 +0000

When you look at your calendar you may find the months already overloaded with seasonal obligations — shopping, entertaining, children’s pageants, charity work, decorating the house, and so much more. If you are also trying to sell your home, you are under extra pressure to keep your home in “showing” condition. And that could be the last thing you need before the holiday spirit is broken.

It is understandable why you would be tempted to take your home off the market during the holidays. And the list of justifications is long. If you are too busy, buyers may be also, and you may find your efforts unrewarded with not enough showings. And what if you do get an offer? You may be faced with the possibility of packing and moving during the busiest time of the year. Besides, you can give your house a rest, and it will have better momentum after the holidays. Better to just pack it in and start fresh in January, right?

But wait! Most top Realtors agree that taking your home off the market during the Christmas season is a mistake. The house surely isn’t going to sell off the market! What is the advantage of that? So you’re busy. Let your Realtor do the work. You can leave in the morning, go to work, go shopping, and let your Realtor take care of things.

The holidays are a wonderful selling period. Why? Because most people take off work sometime during the season. The husband and wife are both off and want to see houses. Most agents like the holidays because the buyers have more time, and they can look at homes together.

Before you take your home off the market, consider the following points:

Although buyer activity may appear to slow down, the buyers who are actively looking during the holidays are that much more serious. Agents believe the home market is no more affected at Christmas than during other “busy” periods. If that were so, the market would shut down throughout the year as families concentrate on spring weddings, June graduations, summer vacations, and autumn back-to-school activities.

Many buyers deliberately choose to shop for a home after the busy spring and summer rush. They know that it will be easier to look, and that negotiations will be less stressful. They may not have children, or they may have grown children, so moving to accommodate the school year isn’t a consideration. Finding the right home at the right price, however, is.

Relocating families often don’t have a choice when they can leave for their new destination. Although 68% of transferring families have children, many families have to transfer during the middle of the school year. These families are that much more motivated to get their families settled in before either the January semester begins, or to arrange for the move during spring break in March. If you sign a contract by New Year’s Eve, the timing couldn’t be more perfect.

At Christmas time, our culture focuses on family and the home. Preparing for the indoor activities of winter is one of the most enjoyable periods of family life. Allowing buyers to view your home during this most hospitable of seasons lets them better picture their own family life in the attractive environment you have created.

When is your home ever more beautiful and inviting? You have cleaned and decorated, and your home looks like a picture postcard. If the results are good enough for family and friends, they will surely be good enough to impress your buyers. Get the family team on board to do a five-minute blitz pick-up every morning to keep holiday messes to a minimum.

With many motivated buyers in the marketplace, you may find you have more showings than you would if you sold your home during a busier time of the year.

If you do get a contract, you can arrange the terms to suit your needs. If moving during the holidays isn’t an option, you can put in the closing date of your choice. Most people can close 30 to 60 days after a contract is written, so there is plenty of time. Possession and closings are very negotiable.

http://www.relocation.com/library/family_moving/moving_during_holidays.html

http://www.ibabuzz.com/propertylines/2007/12/24/selling-a-house-during-christmas-bah-humbug/

Before You Buy Real Estate Check for Restrictive Covenants

Laure & Steve — Tue, 24 Nov 2009 22:32:15 +0000

You’ve just toured the home of your dreams and are ready to make an offer. You can already envision upgrades you would like make: a pool in the back yard, window shutters and a black picket fence to match. You’re even excited that your boat will fit in the driveway. Yet, what you may not be aware of is that there are restrictions that dictate what can and cannot be done to or on the property.

Homebuyers, especially first-timers, may not think of asking about restrictive covenants, yet when you purchase property governed by restrictive covenants, you are consenting to abide by those provisions.

A restrictive covenant, which is a type of deed restriction, regulates a group of new and existing homes or building lots. Developers use them to preserve a development or subdivision as a model community and control its use and appearance. Buyers agree to the sometimes-rigid restrictions in order to maintain the aesthetic standard set by the developer and to safeguard the value of their homes.

Restrictive covenants should not be confused with local zoning and government regulations. Some covenants and zoning regulations overlap; for instance, either can limit the height of a building. But, restrictive covenants tend to exert greater control over a homeowner’s lifestyle. In addition to standard clauses, which may stipulate a home’s minimum size, height, architectural style, and color schemes, covenants often ban practices that could be regarded as aesthetically objectionable–such as parking RVs, boats and non-running vehicles on the property.

Covenants may additionally regulate grass height; window treatments; holiday decorations; walls, fences and hedges; as well as pets–some limit number and type of pets allowed. Very often, owners are required to make repairs within a specified number of days of the initial notification. Depending on a community’s location and other unique features, restrictions may be applied to the use of pesticides, herbicides and fertilizers and removal of dirt and trees. Owners can be prohibited from installing solar panels, building an enclosed patio or adding a swimming pool. Restrictive covenants can also prevent owners from renting the home or operating a home business, including music lessons and daycare. Condo and townhouse owners sometimes face even more rigid restrictions.

What happens when a violation occurs? It’s up to the homeowner’s association or individual property owners to enforce a covenant. Local authorities cannot enforce contractual agreements. Instead, it’s likely that a committee would review the complaint, then notify the homeowner. If the homeowner ignores the initial notice, he or she might receive a notice from an attorney. Legal action would be a last resort.

Before You Buy

While most homeowners enjoy the quality of life resulting from restrictive covenants, some covenants may prevent you from living the life you planned. Before committing yourself to a property, be certain you can live with all the restrictions.

Ask to see a copy of the restrictive covenants prior to taking a trip out to a property. You may be able to eliminate the house from your “To See” list.

If the sales professional didn’t have the document available initially, be certain to review a copy of the restrictive covenants prior to making an offer.
Or, make your offer contingent on your review and approval of the restrictive covenants.

http://homebuying.about.com/od/glossaryc/g/CCandRs.htm

http://www.realtor.com/BASICS/condos/ccr.asp

Billings Real Estate Market Statistics for October 2009

Laure & Steve — Wed, 18 Nov 2009 18:57:15 +0000

Here are the links to this months statistics reports. Our closed residential sales are only around 5% down from last year. That is good news. Let’s hope the trend continues for the rest of the year.

Handout October 2009

MLS Area Charts October 2009

MLS Statistics October 2009

http://www.billings.org/

Renting vs Buying a Home in Billings MT

Laure & Steve — Thu, 05 Nov 2009 22:53:39 +0000

Americans believe in the dream of homeownership. With all the foreclosures and bankruptcies taking place, however, is it cheaper for people to rent rather than buy?

When it comes to the decision of renting vs. buying, most people make the decision based upon a comparison of monthly payments. If their rent payment is less than the payment on a home, many decide that it’s cheaper to rent than to buy. This approach, however, fails to take into account a number of other factors that influence the total costs of homeownership, rather than just the monthly payments.

The first step for any person who is considering buying (or selling) a home is to talk to a tax professional. Each person’s tax situation is different. When you purchase a primary residence you can normally reduce your withholding taxes. That is because the interest on your mortgage is tax deductible.

One of the most compelling reasons to buy rather than to rent is to lock in a permanent monthly payment at today’s rates for the next 30 years. If possible, obtain a fixed-rate mortgage for 30 years. This means that your mortgage 20 years from now will be at the same rate as it is today. In contrast, rent payments tend to keep pace with inflation.

The current 10-year average inflation rate is 2.82 percent per year. (The average since 1913 is actually 3.41 percent a year). Assuming the inflation rate continues to average 2.82 percent per year, in 2019 your $1,000 mortgage payment would be the equivalent of $718 in today’s dollars. If your property value keeps pace with inflation, it would have increased in value by approximately 28 percent as well, making it worth $128,000. Furthermore, you would have paid down your loan for 10 years.

Assuming a 6 percent interest rate on a 30-year fully amortized fixed-rate loan, your balance on your original $100,000 loan would be $83,686. Consequently, your equity position after 10 years would be $16,314 ($100,000 minus $83,686) plus $28,000 in appreciation due to inflation, for a total of $44,314. (This calculation does not take into consideration any amount that you would have placed on the property as a downpayment.)

Of course, there are other costs of homeownership to consider, too, such as homeowners association dues, property taxes and utility bills.

Compare the above example to the costs of renting. If your rent payments kept pace with inflation of 2.82 percent per year, your rental costs over the same period would increase 28.2 percent ($1,282 per month vs. $1,000 today.)

Assuming a 2.82 percent inflation rate over the next 20 years, this example becomes even more compelling. Your monthly loan payment of $1,000 would be the same as $436 in today’s dollars. If your property value kept pace with inflation, it would now be worth approximately $156,000.

After 20 years, the balance on your $100,000 fixed-rate loan would be $54,359. Thus, your equity position would be $56,000 due to the inflation-related appreciation increase plus $45,641 in principal reduction, for a total equity position of $101,641.

In terms of rent 20 years from now, if it kept place with inflation you would be paying $1,564 per month. That’s an extra $6,768 per year more than your mortgage payments if you had locked in your 30-year fixed-rate loan at time of purchase.

The wild card in this entire discussion is inflation. Many experts are predicting that the only way our government can pay our debts is to print more money. The result will be increased inflation. Using the 10-year example from above, paying off a $1 billion loan after 10 years of inflation at 2.82 percent means that the real payoff amount is $718 million in today’s dollars.

For an individual, this may be the best reason to purchase real estate. If you hold your property for the long term, it will normally keep pace with inflation, creating additional wealth. When you rent, you pay off your landlord’s mortgage and make him or her wealthy. These are among the reasons that homeowneship remains an American ideal and the norm.

Billings Real Market Statistics for September 2009

Laure & Steve — Wed, 28 Oct 2009 16:48:26 +0000

I am a little late giving you the statistics this month. They continue to look better each month. It will be interesting what will happen if the $8,000 first time home buyer tax credit is not extended.

MLS Statistics September 2009

MLS Area Charts September 2009

Handout September 2009

Create an Action Plan for an Easy Move

Laure & Steve — Wed, 12 Aug 2009 21:26:12 +0000

The key to an easy move is careful planning. There are many action items that need to be taken prior to the move all the way up to the actual day the first box is loaded on the moving truck. Take time to write down and organize the decisions and activities that will need to be accomplished prior to the move such as securing a mover and changing your address. Ideally, you should try to break up the tasks over a two-month period. By doing so, you won’t overload your schedule, plus it can save you time and money. To get you started, consider using the checklist below as a guide.

Eight Weeks Prior

*Get estimates from at least three professional movers. If you are going to do it yourself, get estimates on rental trucks.

*Decide what furniture and household goods you’ll be taking, what needs to be disposed of and what needs to be replaced.

*If you will be moving to a new city, contact the Chamber of Commerce of that town for a new residence packet. Your sales professional may also have information.

Six Weeks Prior

*Inventory your possessions besides furniture – kitchenware, decorative items, electronics, apparel and so on.

*Complete a change of address form with the post office. This can be easily done online at www.MoversGuide.com for a minimal cost of $1. Make sure you notify organizations, credit cards companies, and publications to which you subscribe of your new address, too.

*Obtain copies of all medical, dental, legal, accounting and veterinarian records.

*If children are changing schools, arrange for transfer of educational records.

*Itemize moving-related costs with the mover including packing, loading, special charges and insurance.

Four Weeks Prior

*Make arrangements for packing your belongings. If you will be using professionals, schedule with the company for packing to take place a day or two before the move. If you will handle packing on your own, purchase adequate boxes, packing materials and tape.

*Arrange for short-term or long-term storage if needed.

*Make travel arrangements for pets including necessary medical records, immunizations, medication and so on.

Three Weeks Prior

*Begin packing items you won’t need immediately or that will go into storage.

*Contact utilities on both ends of the move to order termination or turn-on for occupancy date.

*Confirm travel arrangements for family and pets.

Two Weeks Prior

*Terminate newspaper and other delivery services.

*If necessary, arrange and confirm new bank accounts and local services in your new neighborhood.

One Week Prior

*Gather important papers, records, and valuables for protected shipment to new home or safe deposit box.

ü Obtain any prescription medications needed for the next few weeks.

Day Before or Actual Moving Day

*Defrost refrigerator/freezer and give away all perishable food.

*Keep a box marked “Last Box Packed/First Box Unpacked” for tools, flashlights, first aid kit and so on. On moving day, this should be the last box placed on the truck.

*Pack items to carry with you such as valuables, financial records, personal papers and so on.

*Give the movers a telephone number and address to reach you.

A detailed action plan can get your move well down the road before you ever depart to your new destination.

Billings Real Estate Market Stats June 2009

Laure & Steve — Mon, 03 Aug 2009 19:23:09 +0000

It’s time to take a look at our monthly statistics again. As you can see we are still below last year in activity. Prices are slightly lower than last year but not much compared to other parts of the country. An average of residential sales shows prices to be 3.25% lower this year.

In the surrounding Billings areas prices by area run from and increase of 19% in the Shepherd/Huntley area to a decrease of 11% in the Columbus/Absarokee area.

In the areas close into Billings prices run from an increase of 4% in the Lockwood/Emerald Hills areas to a decrease of 6% in the northwest area of Billings.

Check out some Billings real estate market graphs:

Combined Handout

MLS Area Charts

MLS Statistics