Where is the developer of my subdivision?!?

Do you currently own a home in a subdivision that is surrounded by vacant, unkept lots? If so, carefully consider what could happen–if it hasn’t already. In order to get educated, let me explain how developing property works:

When a developer develops lots, he or she incurs heavy upfront costs to acquire the land and install the infrastructure. These costs must either be financed or paid in cold hard cash. If the costs are finacned, the developer must pay interest on the acquisition and development loan and may have a “balloon” for the repayment of the loan. Those financing costs result in ongoing debt payments that erode any potential profit when the lots are eventually sold. (Life gets exciting when a developer owes millions of dollars on an asset that is unsalable and/or declining in value). The lots created by the developer must either be built upon or sold to builders to recoup development costs and, hopefully, a profit.

In our current market, builders have stopped building because they can’t obtain construction financing and/or they fear they cannot sell the homes when built. This leaves the developer facing the decision to hold onto his lots or sell them at today’s lower lot prices. If the developer sells his lots at a lower price point, builders who purchase them can then build lower-priced homes to meet market conditions. That means homeowners who previously purchased homes when times were better may end up with smaller homes or homes of lower quality built on the remaining vacant lots in their subdivision. This, of course, robs the owner of the “nicer” home in the community of any equity which may remain.

Another separate consideration is what may happen with incomplete common areas and other amenities (pool, community clubhouse, so on and so forth) if the developer sells his remaining lots to another builder who doesn’t deliver on promises to complete those amenities.

All this said, it is essential to be within a proven subdivision developed by a developer possessing financial strength and a track record of delivering what they promise. Otherwise, you may be in trouble.

Questions about your community and the status and/or your developer? Call me at 869-3469, I’d be happy to acquire information for you.

source boiseblog

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

Eagle Idaho Real Estate Statistics–March 2010

Below you will find statistics regarding the real estate activity during the month of February:

Closed Sales – February 2009
# Closed: 19
Average Sales Price: $407,505
Median Sales Price: $398,000

Closed Sales – February 2010
# Closed: 29
% Change: +52.6%

Average Sales Price: $380,523
% Change: -6.6%

Median Sales Price: $365,000
% Change: -8.3%%

Pending Sales
# Pending: 77
Average Asking Price: $366,665
Median Asking Price: $335,000

Available Homes
# Available: 330
# Vacant: 120
Vacant Percent: 36.4%
Average Asking Price: $459,420
Median Asking Price: $350,000

Data does not include condominiums or townhomes. Data taken from Intermountain MLS on3/5/10 and pertains to single-family residences on lot or acreage.

source: boiseblog.com

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

Meridian Idaho Real Estate Statistics–2010

Below you will find statistics regarding the real estate activity during the month of February:

Closed Sales – February 2010
# Closed: 108
% Change: +31.7%

Average Sales Price: $185,052
% Change: -8.9%

Median Sales Price: $160,744
% Change: -12.4%

Closed Sales – February 2009
# Closed: 82
Average Sales Price: $203,049
Median Sales Price: $183,400

Pending Sales
# Pending: 250
Average Asking Price: $188,249
Median Asking Price: $169,000

Available Homes
# Available: 1,000
# Vacant: 575
Vacant Percent: 57.5%
Average Asking Price: $198,957
Median Asking Price: $174,900

Data does not include condominiums or townhomes. Data taken from Intermountain MLS on3/5/10 and pertains to single-family residences on lot or acreage.

source: boiseblog.com

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

Boise Idaho Real Estate Statisics–March 2010

Below you will find statistics regarding the real estate activity during the month of February:

Closed Sales – February 2009
# Closed: 290
Average Sales Price: $209,422
Median Sales Price: $181,625

Closed Sales – February 2010
# Closed: 365
% Change: +25.9%

Average Sales Price: $197,431
% Change: -5.7%

Median Sales Price: $165,000
% Change: -9.2%

Pending Sales
# Pending: 877
Average Asking Price: $203,269
Median Asking Price: $164,534

Available Homes
# Available: 3,684
# Vacant: 1,905
Vacant Percent: 51.7%
Average Asking Price: $240,280
Median Asking Price: $174,900

Data does not include condominiums or townhomes. Data taken from Intermountain MLS on3/5/10 and pertains to single-family residences on lot or acreage.

source: boiseblog.com

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

OVER 406 BANK OWNED HOMES FOR SALE IN ADA COUNTY

As you probably know, there is a plethora of bank owned homes for sale in Boise, Meridian, Eagle, Kuna and Star.   Banks are motivated to sell and will typically price these distressed homes 10-30 percent under current market values.  Granted, most do need cosmetic work done prior to move-in such as new carpet, paint, lawn maintenanceand other misc items.  However, there are some bank owned property which the previous homeowner has taken it upon themselves to leave the residence in nasty shape by taking a sledge hammer to walls and doors along with pulling all appliances like the range, dishwasher, disposal and microwave (sometimes water heaters and furnaces, too).  Unless you would like to take on the costs, I suggest bypassing some of the bank owned homes on the market. 

It is also important to not look for only bank owned homes.  There are numerous non-distressed homes on the market (fair market sellers) that must sell.  These homes are priced competitively and do not need the improvements that a foreclosed upon home typically does.  With that, it is important to consider the costs of repairs when deciding whether to purchase a home which needs some love (yet is priced lower than the home down the street) or one that is turn key and ready to be moved into.

Bank owned homes will be prevelant in our market through 2010 and part of 2011.  Would you like a list of bank owned homes forwarded to you?  If so, send me an email with your contact info and I will provide a list of bank owned property currently on the market.

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

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