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Judy Kivela
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    Years of Experience: 26

    CRS: Certified Residential Specialist
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    WHS: Workforce Housing Specialist

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Kivela Montana Realtors
3100 Harrison Avenue
Butte, Montana
406-491-5777

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Archive for November 2009

First Steps to Getting a Mortgage for Your Butte Real Estate

Monday, November 30th, 2009

You’ve reached that time in your life where you’re ready to buy Butte real estate. Even though the mortgage approval process can be intimidating, you can get yourself ready to apply for a loan. These are the first steps to buying your home:

Make a List

First, make a list of your finances. Include all your income, and factor in your normal monthly debts. Miscellaneous bills, like your daily coffee or weekly magazine, should be listed too. Write down everything that you spend each month.

Calculate what 28% of your income is. Most loan officers recommend not spending more than 28% on your housing costs. You may not want to take on a mortgage loan for the maximum amount offered without consulting your list to see what money is actually available for you to spend.

Decrease Your Debt

Once you’ve have detailed your finances, it’s time to make a budget. A good budget can help you eliminate wasteful spending which will allow you to pay off more of your debts. When planning your budget, don’t forget to include some personal money.

Start with the small debts first. Pick the credit card with the highest interest rate and smallest balance and work from there. After one debt is paid off, use the extra money that you’re saving from the first card, and pay off the next. This way, you should be able to pay your balances down quickly.

It only takes a couple of months of good payment practices to begin to see your credit score go up. With a good credit score, you can get a better interest rate. This will save you thousands of dollars in mortgage payments over the life of the loan.

Save For the Down Payment

You’re ready to start saving for the down payment on your Butte real estate. It has to be paid up-front at the loan closing, but sometimes the seller will pay the closing costs.

If you’d like more tips on how to buy Butte real estate, subscribe to this blog. It’s free and easy. Just enter your email address in the subscription section, and you’ll automatically receive tips like this in your email inbox a couple of times a week.

Decrease your debt:

http://www.wisebread.com/six-steps-to-eliminating-your-debt-painlessly

Make a budget:

http://www.mrcheapstuff.com/deals/2009/06/how-to-create-a-budget-the-painless-way/

Credit score:

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre34.shtm

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Posted in Mortgage | No Comments »

Does Your ARM Increase Mean Butte Foreclosure?

Wednesday, November 25th, 2009

With the current Butte foreclosure woes, and the strains of the economy these days, many people are worried about what they’ll do when their ARM (adjustable rate mortgage) resets. Here are a few suggestions to help you weather the current financial storm:

What is an ARM?

ARM refers to a mortgage loan that has a variable interest rate. The amount of the monthly payments will change several times over the life of the loan. ARMs usually have a lower introductory interest rate than a fixed-rate mortgage. After a period of time, the interest rate is recalculated, resulting in a higher interest rate and monthly payment.

Get Out Your Loan Paperwork

Many homeowners are worried about what will happen to their monthly payments when the ARM resets. Foreclosure is a real worry. The best way to avoid Butte foreclosure is to know exactly what the terms of your loan agreement are. Look for the date that the interest rate is set to change. Find out what the cap is on each interest rate adjustment, and what the cap is for interest increases throughout the life of the loan.

After you have gathered that information, you can calculate what your ARM will reset to. It’s best to know what the worst-case scenario payment could be when your ARM adjusts. This information can help you determine if you are going to need help getting your loan payments manageable. The next step is to make a detailed list of your current and future income and bills. This will give you a better understanding of your financial status.

Call Your Mortgage Company

If, after you make this list, you can see that you are going to have trouble making the difference in the monthly payments, call your mortgage company. It’s best to call them before you miss a payment. They may be able to renegotiate the terms of your loan for you.

If you’re ready to sell your home, I can help. Call me at 406-491-1234 or email me at Judy@montana.com for more information.

LINKS:

Foreclosure: http://en.wikipedia.org/wiki/Foreclosure

ARM: http://en.wikipedia.org/wiki/Adjustable_rate_mortgage

Financial status: http://financialplan.about.com/

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Posted in Foreclosures | No Comments »

A Home for Sale in Butte: Are You a Competitive Seller?

Monday, November 23rd, 2009

Do you have a competitive nature? Do you always have to have the last say? Do you always feel you have to win? If you have a home for sale in Butte, you may have “competed” yourself right out of a buyer. Please, read on to find out how NOT to make this mistake.

Who Calls the Shots?

You’ve probably heard “it’s a buyer’s market” many, many times already. With the number of people who have a home for sale in [city], this is something you can’t afford to ignore. This is especially true considering that the longer your house sits on the market the more it depreciates.

A competitive nature is all well and good, but, when dealing with potential buyers, you have to rein it in. Winning, in this case, is not getting the last word, but selling your home. As you enter into negotiations, keep in mind that the end goal is to sell.

Buyers know they have the market. While this doesn’t necessarily mean they’ll try to walk all over you, it does mean that they may try to negotiate:

  • On price
  • On closing date
  • On inspection period
  • On closing costs
  • On anything

Now, just because they’re trying to negotiate doesn’t mean they aren’t qualified buyers. You may have a very qualified potential buyer trying to negotiate with you.

Warning: at this point, your competitive nature may try to rise up and crush the negotiating potential buyer. Restrain yourself – strenuously if you have to.

While dealing with offers, counter offers and counter-counter offers, ask yourself if you’re being competitive, silly or surprisingly realistic. Are you turning down their offer because it isn’t an exact fit for you? Do you have a legitimate reason for the counter offer, or are you trying to “one-up?” Will a requested change really make that much difference to you?

Although I’m not suggesting that you take the first offer that comes along without looking at it, or that you take an offer that is less than you can afford to take, I am suggesting that you remember there are plenty of people with a home for sale in Butte. As you look at the offers, keep this in mind. Shut down that competitive nature and remember that the only way you really win is when you sign the papers and hand over the keys.

Ready to get your home sold? I can help. Call me at 406-491-1234 or email me at Judy@montana.com for more information.

Links:

Buyer’s market

http://www.investorwords.com/641/buyers_market.html

Closing costs

http://homebuying.about.com/od/financingadvice/qt/BuyClosingCosts.htm

Counter offers

http://homebuying.about.com/od/offersnegotiations/qt/CounterOffers.htm

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Posted in Sell Your Home | No Comments »

I Admit It – I’m a Biased Butte Real Estate Agent

Friday, November 13th, 2009

People have asked me about FSBO (For Sale By Owner).  They want to know whether it’s a good idea to use an agent and the answers to many other questions on this topic. I admit it; I’m biased. I am, after all, a Butte real estate agent.

I’ll even go a bit farther and admit that I’m biased about my hometown. As far as I’m concerned, if you’re going to buy a house, you should use me as your agent and buy a house in this city. But then, that’s what most real estate agents will tell you.

Without the bias, however, there are some real issues with not using a Butte real estate agent (or any agent, anywhere, for that matter).  And, there’s one BIG issue…

The Contract!

Okay, here’s the deal. A real estate contract, like any contract, is a sealed deal once the papers are signed. It’s legally binding and will be upheld in any court of law in the country, with few (and rare) exceptions.

If you don’t understand the contract you’ve signed, that’s too bad.  Lack of understanding does not constitute a dismissal of said contract. While some do manage to back out of a contract once it’s signed, to do so is expensive and stressful.

A wide variety of contracts can be borrowed from anywhere and have been. FSBO sites, as well as many other online sites and offline brick and mortar businesses, have “sell your house” contracts. For that matter, a contract written up by the owner, signed by the buyer with a notary stamp, without any legal representation on either part, is still legally binding:

I, the undersigned, am selling my house to the buyer for the agreed upon amount of money.

Buyer

Seller

Notary

A real estate agent will generally use a standard contract through your state’s Association of REALTORS® or their particular brokerage. What’s the difference, you ask? Quite a lot, but the biggest is that the contracts that agents use are created to fit the laws of each state. In addition, these contracts are not prejudiced towards the buyer or the seller.

Lastly, the buying and selling of real estate is full of potential issues and is a long, involved process. Call me proud and tell me I’m bragging if you want, but I’m good at what I do as a Butte real estate agent. It’s not something I think everyone can (or should) do.

So, if you’re considering going FSBO, take a second gander at this particular article and think hard. We’re not all evil; quite a few great agents out there sincerely want to help you meet your goals of buying or selling a home.

If you’re looking for someone to guide you through the pitfalls, I’d be honored to help. Call me at 406-491-1234 or email me judy@montana.com for more information.

Links:

FSBO

http://en.wikipedia.org/wiki/For_sale_by_owner

real estate contract

http://www.wisegeek.com/what-is-a-real-estate-contract.htm

Back out of a contract

http://money.cnn.com/2009/03/10/pf/saving/mortgage_willis/index.htm?postversion=2009031010

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Posted in Buying a House | No Comments »

Butte Home for Sale? 6 Tips for Selling Now

Wednesday, November 11th, 2009

If your Butte home for sale isn’t selling, you’re probably wondering if you’re missing something. Well, here’s a list of things you might not know that could make all the difference:

  1. If the location of your Butte home for sale isn’t great, the price and terms are the only thing that will sell it. Make them outstanding!
  2. Attractive, competitive terms may help you get a higher price. For instance, if you’re allowing the option of owner financing, and also allow a smaller down payment (say, $20,000 – $30,000), you may be able to sell your house for a higher overall amount.
  3. Because of the current high competition, your home has to be in the best condition at a competitive price. Check out the competition, accept that yours might need work, and get to it.
  4. You can’t set a limit for home improvement. If your home needs something done to beat the competition and you can do it, do it! You aren’t just spending money; you’re investing in the sale of your home. Although you may not get all your money back, you just might get a quick sale at full value.
  5. Staging – you’ve heard of it; tons of agents are talking about it. If you want to get your house sold, either invest in staging services or do your homework and stage the home yourself. It’s all about presentation.
  6. Remember that you are no longer the host/hostess of the house. You are a business person, and your business is getting that house sold. Don’t let your emotions get in the way of a solid business deal.

Putting up your Butte home for sale is a daunting prospect. If it’s been up for a while, it can be an exercise in frustration. However, keep the above points in mind, listen to the experts and put what you learn to work for you.

If you’d like to get your home sold, I can help. Call me at 406-491-1234 or email me for more information.

Links:

Owner financing

http://homebuying.about.com/od/financingadvice/qt/091007_OwnFinan.htm

Home improvement:

http://www.lowes.com/lowes/lkn?action=home

Stage the home

http://money.howstuffworks.com/personal-finance/real-estate/home-staging2.htm

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Posted in Sell Your Home | No Comments »

Butte Home Care – 3 Fall Maintenance Projects

Monday, November 9th, 2009

The last vestiges of summer have faded away, the leaves are turning into a brilliant array of color and the temperatures are dropping. All this glorious change means the holidays are coming, but it also means it’s time, once again, to look over your Butte home.

With temperatures dropping and leaves falling, there are plenty of things to add to your “to do” list. Just in case your list is empty, here are a few “to do’s” to get you started on your fall Butte home care:

  • Sealing Your Driveway – If you have a blacktop driveway, you probably already know it isn’t going to be smooth forever. The asphalt cracks, the color fades and the asphalt sags to create potholes. As winter rolls around and snow begins to fall, you’ll probably be putting down salt, which will further break down your driveway. Sealing it now, either by hiring a company to do it or sealing it yourself, can help keep your driveway smooth and beautiful.
  • Winterizing Your Sprinklers – Sprinkler systems do wonders in keeping your lawn green. However, leaving water in the system over the winter can cause a big, expensive mess, especially if the pipes aren’t buried below frost level. If you don’t feel comfortable winterizing the sprinkler system yourself, you can hire a professional for under $500.
  • Cleaning Gutters and Roofs – Everybody knows that fall brings leaves that fill your gutters and cover your roof. If you haven’t been on the roof of your house lately, now’s the time to do it. You want to make sure all the debris is gone before the snow hits, so the strength of your roof isn’t tested further. For that matter, now is a great time to install gutter guards; you’ll never have to clean your gutters again!

Preparing your Butte home for the winter can be a tedious process, but the money you’ll save with proper maintenance will put a smile on your face.

If you’re looking for a home to call your own, I can help. Call me at 406-491-1234 or email me for more information.

Links:

Sealing it yourself

http://www.lowes.com/lowes/lkn?action=howTo&p=LawnGarden/SealDvWay.html#term

Winterizing the sprinkler system

http://www.housekeepingchannel.com/a_603-Tips_for_Winterizing_Your_Sprinkler_System

Gutter guards

http://www.askthebuilder.com/Gutter_Guard_Test_Results.shtml

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Posted in Home Improvement | No Comments »

Butte Housing Market: Unemployement Up

Saturday, November 7th, 2009

The Labor Department says the number of newly laid-off workers filing claims for unemployment benefits fell last week to the lowest level in 10 months, but companies are reluctant to hire and economists expect the unemployment rate will tick up to 9.9 percent when October’s figure is reported Friday. The jobless rate hit a 26-year high of 9.8 percent in September.  First-time claims for jobless benefits fell by 20,000 to a seasonally adjusted 512,000. That’s better than economists’ estimates of 523,000. The four-week average, which smoothes fluctuations, dropped to 523,750, its ninth straight decline. That’s 135,000 below the peak for the recession, reached in early April but well above the 400,000 that will signal job creation.  Another 4.1 million people claimed extended unemployment benefits in the week ended Oct. 17, the latest data available, an increase of about 100,000 from the previous week. Congress has added 53 weeks of emergency aid on top of the 26 weeks typically provided by states.

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Posted in Housing Market | No Comments »

Good News for Butte Homeowners, Tax Credit for home buyers extended.

Thursday, November 5th, 2009

The Senate voted yesterday to pass an extension of the first-time homebuyer tax credit until April 2010.  98 Senators voted in favor of H.R. 3548, with zero votes against (two Senators did not vote). H.R. 3548 is a bill is primarily concerned with extending unemployment benefits.  The bill is currently amended to include the extension of an $8,000 tax credit for those buying their first homes as well as an $6,500 tax credit for some borrowers buying a home for a second time.  “This critical program has already enabled hundreds of thousands of Americans to become first-time homebuyers,” said Business Roundtable, an association of CEOs of leading U.S. companies.  the tax credit can still be removed from the final wording of the bill, if placed under further review. However given recent lobbying efforts in the industry and a feeling of presidential support, this remains unlikely. Hopefully the House will pass the bill and it could reach the President on Friday.

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Posted in First Time Home-Buyers | No Comments »

Save Your Life and Your Butte Condo

Tuesday, November 3rd, 2009

If you live in a smaller place like a Butte condo, you may be ignoring a very important part of your home. Worse, your home may not even contain this significant piece of technology. It’s small, it seems insignificant, and it can save your life.

It’s the smoke detector, and paying attention to it can literally mean a difference between life and death. Many people have them, but don’t take care of them. Others don’t have them at all, thinking a Butte condo is small enough they would notice a fire if it started. Here are a few “to-dos” and tips to taking care of your smoke detector:

  • First and foremost, if you don’t have one, get one! For that matter, it’s always best to get a smoke detector for as many rooms in the house as needed. Check the manufacturer’s guidelines to find out how far your particular brand can sense smoke and buy accordingly.
  • Use the “test” button! Every smoke detector comes with a button to test whether it’s working or not. If it doesn’t beep when tested, the batteries should be replaced. If you replace the batteries and it still doesn’t beep, replace the detector.
  • If you’ve had a smoke detector for more than ten years, replace it! Even these handy gadgets run down and lose sensitivity.
  • Change the batteries bi-annually. For many, it works to remember to change them on the day Daylight Saving Time begins and the day it ends.
  • Keep your detectors clean! Vacuum all the little particles that can clog up the sensors and make the detector inoperative. If you do this once a month, the chances of them failing are much less.
  • Replace smoke detector batteries any time the detector chirps.
  • Always pay attention to the manufacturer’s guide when installing, testing and cleaning.

Although these tips may seem common sense, they’re also easily forgotten. Taking care of the smoke detectors in your Butte condo can literally be the difference between life and death.

If you’re looking for a condo with important safety features, I can help! Call me at 406-491-1234 or email me for more information.

Links:

Get a smoke detector:  http://www.consumersearch.com/smoke-detectors

Daylight Saving Time:  http://www.nist.gov/public_affairs/faqs/qdaylite.htm

Replace the batteries: http://www.ehow.com/how-does_4780147_replacing-smoke-detector-batteries.html

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Posted in Condos | No Comments »

Energy Efficient Mortgages for Butte Real Estate

Sunday, November 1st, 2009

If you’re looking to buy Butte real estate, you’re probably already looking at mortgage possibilities as well. Since many buyers are also looking for energy efficient options, I thought it only right that I brought EEMs (Energy Efficient Mortgages) and EIMs (Energy Improvement Mortgages) to your attention.

What are EEMs and EIMs?

An EEM adds a home’s energy efficiency into the mortgage, giving you the ability to finance energy efficient measures as part of the mortgage payment. One of the good things about an EEM is that it stretches the debt-to-income qualification ratio, which means that you can qualify for a larger loan and a more energy efficient home.

An EIM is for existing Butte  real estate that you plan to make energy efficient improvements to. You can include the cost of the improvements into the mortgage without raising the down payment. In addition, whatever you save in utility costs from the improvements can go to finance more improvements.

Qualifications

If you’re trying to qualify for an EEM or EIM, you’ll need to have a home energy rating conducted first. This is to give you an estimated Energy Savings Value – the value of the measures and the estimated monthly energy savings.

Types of Energy Mortgages

There are several types of energy mortgages available:

  • Conventional - sponsored by Fannie Mae and Freddie Mac, these EEMs give the Fannie Mae approved lender the ability to raise your income, matching a dollar for each estimated dollar gained through efficiency.
  • FHA - Lenders can add 100% of the cost of improvements to an approved FHA loan, up to $4,000 or 5% of the home value (maximum of $8,000). FHA loan limits won’t stop you from getting the EEM. You can find out more about the FHA EEMs on their website.
  • VA – Veteran’s Administration EEMs cap energy improvements at $3,000 to $6,000, and are for buying existing [city] real estate. If you’re a qualifying reservist, veteran or military personnel, you can find more information on the U.S. Department of Veteran’s Affairs website.
  • Last but not least, there is the Energy Star mortgage pilot program. Currently, it is only available in a few states, but it’s growing to include others.

If you’re interested in making energy efficient improvements to an existing home or buying a home that’s already energy efficient, I strongly recommend that you look into EEMs and EIMs.

If you’re looking for an energy efficient home or one you can make energy efficient, I can help. Call me at 406-491-1234 or email me for more information.

Links:

Fannie Mae approved lender

http://www.fanniemae.com/flApplication/fanniemae/findLender.jsp?p=Find+a+Lender+Search

FHA EEMs

http://portal.hud.gov/portal/page?_pageid=73,1&_dad=portal&_schema=PORTAL

U.S. Department of Veteran’s Affairs

http://www.homeloans.va.gov/rlcweb.htm

Energy Star mortgage pilot program

http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.pt_lender_mortgage

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Posted in Mortgage | No Comments »

Market Recap

  • Avg. Sales Price: $102,209

  • Avg. Days on Market: 119

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