Real Estate Information Blog - The Houses By Harlan Team Real Estate Sioux Falls, SD

Good Monday Morning Everyone!

Monday, February 25, 2008

by The Houses By Harlan Team

Hopefully everyone is taking the slow and cautious route as we head back to jobs or school today. These late winter storms always seem to catch a few of us unawares and a little under prepared for the reality of driving in wintry South Dakota. Slow down and be safe!

I guess those same words could apply to our real estate market too. As we have talked about on this page a number of times, the slow and steady approach has seemed to serve our Sioux Falls market fairly well. Some of the national publications and news services have even picked up our numbers. We may not grow and appreciate as fast as some other areas but the slump isn’t hitting us as hard either. It doesn’t mean that it’s perfect here but we don’t appear to be in survival mode. Open house traffic over the weekend was brisk. Hard to tell if that was a sign of the beautiful sunshine or it’s the first sign of spring!

One sure sign of spring however is the Sioux Empire Home Show. It’s the 49^th Annual show and starts this Thursday (2/28) at 5:00 and runs through Sunday (3/2) at 5:00. Check the Home Builders Association website for details. Here is their address: www.hbasiouxempire.com . It’s always a great place to look for ideas, the latest in materials and accents for your home or to check on the market rates. Look forward to seeing you there!

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Monday Morning Coffee

Monday, February 18, 2008

by The Houses By Harlan Team

Wow, are we lucky to live in Sioux Falls and South Dakota or What?

I was thrilled to see the front page headlines on Friday! So much so that if you missed it I want to give you the link so you can read it for yourself and forward to all your friends and family so they can see how great living in Sioux Falls really is.

Here is the link to the article in the Argus Leader:

http://www.argusleader.com/apps/pbcs.dll/article?AID=/20080215/NEWS/802150328

Seriously, Let’s enjoy what we have and be so very thankful that we live where and when we do right here!

I guess the moral of this story is if you are looking to buy or sell here in Sioux Falls, the prices are probably not going to go down much from where we are. The other side to seriously look at is that mortgage interest rates are starting to go back up. They are still great so now is the time to move. Come on along, we are in for a great ride in real estate here in Sioux Falls, SD.

Sincerely,
Harlan & Mark

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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Foreclosure: What It Means and How It Works

Friday, February 15, 2008

by The Houses By Harlan Team

Foreclosure is the process through which a lender can sell or repossess (take ownership of) a property in order to recover the amount owed on a defaulted loan secured by the property. Anyone worried about missing their home payments--or those thinking about purchasing a foreclosure property--should understand how foreclosures work.

State laws govern the foreclosure process, and they vary from state to state. You'll want to check with your own state to learn the details, including whether a judicial procedure is required (see box below).

Following is a broad-brush summary of the three stages of foreclosure, assuming the homeowner fails to satisfy the repayment obligation along the way.

Pre-foreclosure. This stage begins when the homeowner falls behind on home-loan payments (or sometimes other terms of the loan). Lenders may wait for a second, third or even fourth missed payment before sending the homeowner a "default" notice--which becomes public record. The homeowner then has a given period of time to respond to the notice and/or come up with the outstanding payments and fees--often by selling the home. (If a judicial procedure is required, it occurs after the default notice is given.)

Foreclosure. At this stage, the former homeowner may or may not have been evicted (depending on state law) when the lender puts the home up for public auction (after a judgment of foreclosure in those states requiring judicial procedure). If the home sells at auction, money from the sale is used to pay off the costs of the foreclosure, tax and other prior liens, service charges and advances, interest and principal on the mortgage, late charges or fees, and liens recorded after the first mortgage. Any amount left over is paid to the borrower (former homeowner). Often, however, proceeds of the sale are less than the various amounts owed, in which case the lender may be able to hold the borrower responsible for the difference.
"Real Estate Owned." A foreclosed property that does not sell at auction--either because no one bid on it or bids were too low to cover the outstanding loan--becomes the property of the lender (or government agency that guaranteed the loan--HUD, VA, etc.). Most lenders prefer to list their "real estate owned (REO)" homes for sale through real estate brokers, rather than keeping them or managing the sale of REOs themselves.

Avoid Getting Hooked By A Foreclosure-Related Scam

There are lots of people out there willing to victimize people in financial difficulty--especially when their troubles become part of public record. Beware of offers involving signing over your deed to someone else who promises to sell your home for you--whether they do or not, you'll still be responsible for the mortgage.

Also, investigate people who offer to buy your property so you can avoid foreclosure. They may be legitimate but, to be on the safe side, check them out by contacting your state Attorney General, the state Real Estate Commission, or the local District Attorney's consumer fraud unit.

Finally, consider carefully any "counseling agencies" that offer foreclosure-mitigation services for a fee. In many cases, they offer services you can perform yourself, such as negotiating a workout plan with your lender.

If you decide to conduct a pre-foreclosure sale, give us a call. We'll work with you to make sure your interests are protected in the transaction.

Keep in mind that if you have a loan ensured by the Federal Housing Administration (FHA), the Department of Housing and Urban Development (HUD) offers a toll-free number you can call to find a HUD-approved housing counseling agency: (800) 569-4287. For more information about foreclosures provided by HUD, go online to: www.HUD.gov/offices/hsg/sfh/econ/econ.cfm.

Foreclosure Fact

The type of foreclosure procedure followed in a state depends on whether real property is purchased there using mortgages or deeds of trust. (Some states use both.) In general, states that use mortgages require a judicial procedure through which the lender must get court approval to initiate foreclosure. Where a deed of trust containing a "power of sale" clause is used to purchase property, the lender can initiate a foreclosure sale without going to court.

WANT TO FIND FORECLOSURES

Buying a foreclosure can be a lucrative investment. Your goal is to buy property far below market value so your investment already has substantial equity on the day you close.

Understanding the foreclosure the process gives you some insight into locating foreclosures at their earliest stages and avoiding some of the pitfalls.

When you are ready to purchase a foreclosed home remember you're cashing in on a home someone was no longer able to pay for.

A foreclosure means that because a home owner has become unable to pay the mortgage and the lender is forced to take back the property. The legal steps involved differ from state to state, so make sure you do your homework or have a real estate agent guide you through the process.

When you are ready to embark on the foreclosure experience make sure you find an agent experienced in foreclosures. And, be aware that some sellers won't accept offers from unrepresented buyers.

Search for foreclosure Listings by visiting Samia's USHUD website to find properties in the area you are interested in. Click here to visit http://www.siouxfallsshortsale.com/

Here are a few tips when looking into purchasing a foreclosure:

Tour the property and inspect it as closely as possible. Some foreclosures--unlike fixer-uppers--are in fairly good shape, but others may require some maintenance.
Have your agent check nearby or comparable homes to see if the asking price for a foreclosed home is, in fact, a good price.
Order a copy of your credit report and correct any defaults or outdated information.
Then meet with a mortgage company to become prequalified for the mortgage.
Check to see if the foreclosed home has any liens on it, such as unpaid property taxes, then find out who is liable for those costs.
Have the home inspected if the seller allows. Some sellers include this as part of the sales agreement, but the buyer still pays for it.
Be prepared to deal with more paperwork with a foreclosure than you would with a conventional purchase, particularly when a government agency is involved.
Make sure to ask your agent questions and become educated in the foreclosure process.

I can assist you with the foreclosure process, so if this is an area you are interested in, please let me know. I will be happy to offer you my knowledge and expertise.

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Good Afternoon

Tuesday, February 05, 2008

by The Houses By Harlan Team

Isn’t perspective a wonderful thing? If you hail from New York/ New Jersey, life probably looks pretty good. If you call Boston/ Foxboro home, maybe not so good. Regardless, it was a game worth watching as the football season comes to a close. Time to switch seasons and get ready for March madness!

Back to this matter of perspective. We continue to hear the negatives regarding values and mortgages on the national scene and its information that is hard to ignore. It’s a view that probably makes many of us wonder what is in store for us. Fortunately, we don’t operate in the national scene! Here in Sioux Falls the picture really is much less dire. Mortgage rates are still low, almost historically so. The inventory of homes is not what we could really use for a city of our size. We do have room for more of us to put our houses on the market. If you are trying to decide whether now is the time to sell or refurbish and refinance, give us a call! We would love to stop by and give you professional assistance with that decision.

Have an Awesome Week!

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Not Ready to Buy Right Now... Is This You?

Tuesday, February 05, 2008

by The Houses By Harlan Team

A Real Estate Agents prospective client said he was not ready to buy right
now... Is this you?
Provided by Jeff Sislow (Minneapolis) & John Riggins (Hawaii)

Aloha David,
Thank you for your email.
You did not mention why you are not in a position to buy at this time. Would you tell me why?
If it's because you don't think you can afford to buy now, I must advise you that it's less expensive to buy today than it was 3 years ago. Home prices have gone through a market correction after the highs of 2005. Interest rates are at 44 year lows. This past week the 30 year fixed mortgage interest rates ranged between 4.75% and 5.25%. And thirdly, there is an excellent selection which gives you more choices of properties available.

There is an old saying, "buy when everyone is selling and sell when everyone is buying." This could not be more true than today. If it's the news media and what it is saying that is keeping you from buying, when was the last time you saw a reporter who was rich?

The following are just a few of the many quotes from the news media over the years:

"The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline." -Time Magazine, 1947.

" Houses cost too much for the mass market. Today's average prices is around $8,000-out of the reach for two-thirds of all buyers."-Science Digest, 1948.

"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000."-Business Week, 1969.

"You might well be suspicious of 'common wisdom' that tells you, 'Don't wait, buy now'...continuing inflation will force home prices and rents higher and higher."-NEA Journal, 1970.

"The median price of a home today is approaching $50,000...Housing experts predict price rises in the future won't be that great."-Nations Business, 1977.

"The era of easy profits in real estate may be drawing to a close."-Money Magazine, 981.

"The golden-age of risk-free run-ups in home prices is gone." -Money Magazine, 1985.

"Most economists agree...{a home} will become little more than a roof and a tax eduction, certainly not the lucrative investment it was through much of the 1980's."-Money Magazine, 1986.

Financial planners agree that houses will continue to be a poor investment."-Kipplinger's Personal Financial Magazine, 1993.

"A home is where the bad investment is." -San Francisco Examiner, 1996.

"Home prices experience historic drop."-CNN Money.com, 2007.

Each and every negative prediction by the Media was short-lived. At the time such predictions were made it appeared real estate would never go up again in value-similar to the way it feels for many now. The good news is found below. This time is no different than times past!

If you want to be independently wealthy, you have to do what the rich do.

"There is an excellent selection of properties in a down market...You can deal with sellers...There is a window of opportunity only for a limited period of time...The market always comes back and I have made tons of money from buying in down arkets..."Donald Trump, 2008.

FACT: National real estate values have appreciated.
* 88% since 1996
* 340% since 1977
* 685% since 1969
* 2650% since 1948

More wealth has been made through real estate than any other investment. There are significant tax advantages to buying real estate vs other investments. Besides owning your own home and the pride of ownership, you can greatly reduce your tax burden by
writing off the interest and real property taxes from your income. When become a landlord, you can write off the interest, real property taxes, depreciation, maintenance fees, repairs and management fees from your income while having the tenant pay off your mortgage.

Appreciation is significant. Over the past 40 years, Oahu residential real estate has appreciated an average of 6.5 percent per year. Based upon past history, it's anticipated that a property purchased for $200,000 would appreciate to over $1 million in 30
years, be debt free and produce a significant retirement income (Ask to see my Wealth Accumulation Chart).

*NOW is the best time to BUY!

INVEST TODAY--RETIRE TOMORROW

Having worked daily in residential sales for the past 31 years, I am an expert at creativity finding ways to finance real estate. You do not want to miss this window of opportunity to buy real estate. You do not want to have regrets down the road. If you are sincerely interested in accumulating wealth, give me a call at 808.674.1111 or cell: 808.371.3930.
Best wishes,
John

John Riggins
REALTOR ABR CRB CRS ePRO SRES TRC

John Riggins Real Estate
91-210 Oaniani Place
Kapolei, HI 96707

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Sioux Falls Market

Friday, February 01, 2008

by The Houses By Harlan Team

Hopefully, it was a productive and enjoyable weekend for each of you. I know sunshine and a break from the frigid weather does wonders for both body and soul. It’s that glimmer of hope that keeps us moving on through the bleak mid-winter! Enjoy it for now…..

We continue to see daily activity on the national scene with news coming at us regarding home values, rate changes, company consolidations and federal legislative proposals. It doesn’t appear that it will change in the near future either. But regardless of all that, the Sioux Falls market continues to move forward. It isn’t that we live on the Isle of Perfect Real Estate, but we do have a supportive blend of industry, city and state organizations that all serve to give us a steady base that keeps our home values from the drastic falls seen elsewhere.

Tax relief for both individuals and employers is being discussed. How these discussions will finally work out is probably still not quite on the horizon but we all appreciate the efforts being put forth. It will be interesting to see how increases in loan limits will help the average home purchase or refinance in the coming months also. Lenders are telling us about the increase in loan applications for refinancing those loans taken out over the preceding year or two. Rates like we see today are very real attraction for many of us. But if the market is causing you to consider the refinance option, we would also suggest that a move-up purchase may be equally beneficial. We would enjoy the opportunity to visit with you and provide you a professional opinion on your home’s value. Feel free to contact us by either e-mail or phone!

Have a terrific week and we’ll talk to you after Super Bowl Sunday!

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Flood Insurance Information

Thursday, January 24, 2008

by The Houses By Harlan Team

Click on this link for information about the new flood insurance areas in Sioux Falls.

http://www.siouxfalls.org/Building/information/flood_mgmnt/faqs.aspx

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Check Your Furnace!!

Thursday, January 10, 2008

by The Houses By Harlan Team

Please Get Your Furnace Checked and Install Carbon Monoxide Detectors

A testimonial and a family’s experience from a Christmas email I received this year from our next door neighbor that I would like to share with you. Please read.

Yesterday we had a very frightening thing happen to us here. Kim and I got up at 6 am to KNWC (our usual.) The two us started to share as getting ready that neither of us felt very good-strong headaches, dizzy and nauseated. Kim so much so that we decided he couldn't drive to work until he felt better. Heidi got up to say goodbye to us before we left, since she was headed back to Orange City later in the day. She was feeling worse than we were.

I called the gas company to see if they could come and check the carbon monoxide levels in the house. We turned off the furnace, opened windows, etc. Kim stayed at the house and I went on to work. I thought I would just feel better over a little time. I continued to feel poorly and even shaky and confused. I was just telling some nurses at work about how I was feeling when Kim called and said the gas company found a problem with the furnace and the house had fatal levels of carbon monoxide in some of the rooms. Another hour or two without opening the windows and we would be dead. Two nurses drove me back home.

Nate became our designated driver since he seemed to have no effects. We went to the emergency room where they took our blood levels and treated us with oxygen. Our blood levels were 15-20 times normal. After 3 to 4 hours on O2 most the the symptoms disappear.

We went back to a cold home, but very grateful. Over the next few hours the headaches gradually decreased. Heidi did make it back for her classes today. Lambert put us and our dog up in a hotel for the night so the furnace can go in today. The noises coming from the basement, as my cold fingers write this, make promises of heat by tonight.

We have two carbon monoxide detectors here today!

Go to our web site http://www.housesbyharlan.com/ServiceList.aspx for a person to check your furnace or Lamberts Heating and A/C 338-1231 who Kim and Yvonne used.

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Welcome to 2008!

Monday, January 07, 2008

by The Houses By Harlan Team

We are very excited for this next year. We are planning on a record breaking year in many aspects. Number 1 we have outdone the downward trends that many markets have had in 2007. Our average sales price increased from $165,633 in 2006 to $175,856. That is a 6% increase versus many markets are seeing 10 to 30% decreases. (Now quickly to interrupt your thoughts, this does not mean that all houses have increase 6% in value, it is just as we said our average sales prices). For more statistics check out our pod-cast in a few days after I get it recorded and it gets posted to our web site.

If you are looking to buy or sell, the next few months could be some of your best opportunity and 2008 definitely is looking very bright. If you wait for the trees to bud and the flowers to bloom you may miss the best part of the 2008 market for home sales. Waiting for Spring/Summer could cost you time and money.

Have an Awesome Week!!

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Discount Points?

Monday, December 31, 2007

by The Houses By Harlan Team

In the midst of the holiday season, we continue to provide the real estate service you have come to expect! This week, we received a question on the wisdom of paying discount points during a refinance or purchase. Great question! Just in case you’re a little uncertain what discount points are, here’s a quick definition. Each point is 1% of your mortgage amount and is essentially prepaid interest. These points (or portions thereof) are used to reduce your mortgage note rate. There is no real rule of thumb as to when it’s best to pay or walk away. It really depends on multiple factors such as available cash, the amount of time it takes to recoup the investment, other needed uses for your money and general investment philosophy. Even as I tell you there is no “rule” per se about points, many of my mortgage clients seemed to consider paying the points if the payback would be in the range of 30-36 months or less. It’s up to you to decide what best promotes your specific situation.

For additional information, you might want to take a look at the following links. There is an abundance of information available but these two sites will give you a quick overview regarding paying points and potential benefits. Here you go; www.bankrate.com/brm/news/mortgages/20060126a1.asp and www.mortgagecalculatorsplus.com and pass on to all.

Have an AWESOME week!

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