The following chart compares homes sold in 2010 to homes sold in 2011 in Missoula.  This information was gathered from the Missoula Multiple Listing Service.  In many neighborhoods, the average price is less in 2011 than it was in 2010.  Keep in mind that there are many variables that could have played a part in these numbers, but they may help us understand our current market a little more.

As always, please call us with any questions!  Happy New Year!

Here is the schedule of events:

11:00 AM :  Holiday Storytime at Missoula Public Library

12:00 Noon :  Drop-In Holiday Project & Ansel Adams Tour at Missoula Art Museum

12:00 Noon – 5:00 PM  :  Cookie Decorating at Bernice’s Bakery

1:00 PM – 5:30 PM  :  Photos with Santa at the Holiday Inn Parkside

1:00 PM – 5:00 PM :   Free Family Films at the Roxy

1:00 PM – 5:00 PM :  Christmas Card Workshop at Zootown Arts Community Center

1:00 PM – 5:00 PM :   S’more Making at the Carousel

1:00 PM – 2:00 PM :   5 Valleys Sweet Adeline’s Choir at Holiday Inn Parkside

3:00 PM – 5:00 PM :   Parson’s Ponies Pony Petting at Big Dipper

3:00 PM – 5:00 PM :   Childbloom Guitar Program Bella Corda Guitar Quartet at Break Espresso

6:00 PM        Parade of Lights on Higgins Avenue

6:40 PM        Lighting of the Downtown Christmas Tree at the Red XXXXs

This is a great event to get out with your family and have some fun…we hope to see you there!

Happy Holidays!!!

Lorin:    (406) 531-4687     /   Lorin@LorinAndAmy.com

Amy:     (406) 370-4144    /    Amy@LorinAndAmy.com

Windermere:    (406) 541-6550

We wish a very happy Holiday Season to each and every one of you, and your families!

If you are considering buying a house, this class could be very valuable to you.

Topics to be covered:
-Selecting a lender
-Affordability
-Home Inspection
-Distinguish Between Different Types of Loans
-Special Financing Programs
-Work With a Real Estate Professional
-Home Insurance
-Credit Reports

Here is the information, courtesy of Brendan Moles at Homeword, Inc.:

Date: Saturday, November 12, 2011
Time: 9:00 AM – 6:00 PM
Location: Mountain West Bank, 3301 Great Northern Way (Next to Costco)
Topics Covered: Financing Options, Good Faith Estimates, Affordability, Closing Process, Inspections, Home Insurance, Credit Reports, Budgeting

Date: Monday, November 14, 2011
Time: 6:00 PM – 8:00 PM
Location: Homeword, Inc., 127 N. Higgins, Suite 307
Topics Covered: Special Financing & Downpayment Programs

Cost:
$20/person or $35/household
Register & Pay Online HERE
*Childcare vouchers are available for Busy Hands Fun Center

Questions or More Information:
Call: Holly at (406) 532-4663, ext. 10; or
E-mail: info@homeword.org

Currently, in and around the City of Missoula there are 33 listings on the Multiple Listing Service (“MLS”) that are classified as bank-owned homes, 3 of which are currently under contract but accepting backup offers.  Keep in mind that these are properties that have gone through the foreclosure process and are currently listed on the Missoula MLS for sale.  There are many more that are currently going through the process, but have not yet been listed.  The actively listed properties range in asking price from $55,000 to $465,000.  By area, here is the breakdown:

Central Missoula:
# of Listings: 4
Range in Price: $55,000 – $134,500

McCormick Park Area:
# of Listings: 1
Price: $130,000

North Missoula:
# of Listings: 1
Price: $147,900

Target Range:
# of Listings: 3
Price Range: $159,900 – $228,900

South Hills:
# of Listings: 1
Price: $184,900

Slant Street:
# of Listings: 1
Price: $204,900

Linda Vista:
# of Listings: 5
Price Range: $164,500 – $335,000

Mullan Road West:
# of Listings: 2
Range in Price: $105,000 – $229,000

Expressway / N of Broadway, S of Interstate:
# of Listings: 1
Price: $156,000

Wye area to Lake County Line:
# of Listings: 8
Price Range:  $178,500 – $338,000

East Missoula / W Riverside:
# of Listings: 3
Range in Price:   $79,900 – $189,900

Bonner/Turah/Clinton:
# of Listings: 1
Price: $119,500

Rock Creek:
# of Listings:  2
Price Range: $174,900 – $465,000

As I mentioned above, these are properties that are currently listed on the MLS.  If you would like a list of properties that may currently be in the process of foreclosure, please let me know and I would be happy to send you that list (Amy@LorinAndAmy.com).  This list is compiled weekly and includes properties in which the initial “Notice of Foreclosure” has been filed.  If the current owners can bring payments up to date, or refinance, these properties may never actually become foreclosures.

Purchasing a foreclosed home differs from purchasing a short sale in that when you are purchasing a foreclosure, you are purchasing the home from the bank.  When you purchase a short sale, you are really purchasing the home from the Seller, who in turn has negotiated a less-than-full payoff with their lender.

What does that mean to a Buyer?  Purchasing a foreclosure could require that additional documents be signed, depending on what the bank that owns the home requires.  It also will probably require that you sign documents stating that you are accepting the home as-is, and cannot go back on the bank if you find something out about the home that was not disclosed to you.  You are still, of course, allowed the chance to do all your inspections and negotiate whatever resolutions you deem necessary, but the bank will not assume any responsibility for disclosing anything about the home.

Very generally speaking, it is sometimes less time consuming to purchase a foreclosure, as compared to a short sale.  The reasoning for this is that when you are purchasing a short sale, you are negotiating with the Seller, and then the Seller is negotiating with their lender.  This chain of communication can get lengthy and confusing.  When you are purchasing a foreclosure, you are negotiating directly with the Seller, who is also the bank.

As always, please contact us with any questions about real estate matters – we would love to have the chance to assist you: Amy@LorinAndAmy.com

The permitting of septic systems (every on-site wastewater treatment system) in Missoula County has been required since the late 1960’s.  The size of the septic tank and drainfields on residential structures is determined by the number of bedrooms that a home includes.  This, however, is the part that becomes difficult.  A “bedroom” is considered to be any space that could easily be used for sleeping and has a reasonable expectation of privacy (so this could include offices, exercise rooms, game rooms, etc.).  In real estate, we generally consider a “bedroom” to be a room with legal egress and a closet.  This, however, is not the same specification when a bedroom count is done for septic sizing purposes.

Why would a room that is obviously being used as an office or game room be considered a bedroom?  Wouldn’t it be more accurate to count the number of people using the home and septic system?

The Health Department counts the number of rooms that could reasonably be used as bedrooms, rather than the actual current usage, because upon sale of a home, that home could have vastly different usage on the septic system.  If the Health Department were to strictly compute based on usage and how many people occupied the home, they would, potentially, have to adjust the system upon every sale of the home.   This, of course, would not make sense.

What if a septic system in a home was permitted, but then bedrooms or additions were made without a building permit?

Homes with permitted septic systems are usually only for the number of bedrooms that were in existence at the time of the permit.  Sometimes, an additional bedroom was added to the count if there was an unfinished basement or other unfinished portion.  If there are any additions made, you should definitely check with the Health Department, as they would be able to tell you if any changes are needed to the septic system.  If additions were made without a building permit, and without checking with the Health Department, then the home could very likely be out of accordance with the permit, and would likely require changes and or upgrades.

So, what would be required if a home has usage beyond what the permit allows?

If a home contains more “bedrooms” than a permit allows, there are a number of different possibilities for correction.  Corrections and/or upgrades to the system depend a lot on what the soil is like in the area.  For example, a home in sand or gravel soils that went from three bedrooms to four bedrooms many only have to add fifty feet of drainfield to the existing system.  However, if the same home were located in clay soil, the upgrades could include increasing the septic tank size, and adding a significant amount of lineal feet to the drainfield.  It could also include changing the system from a gravity system to a pressurized system.  The biggest circumstances that determine the changes to be made are (1) the type of soils in the area; (2) how far the homeowner has deviated from the original permit; and (3) the conditions of the subdivision approval.

There may also be some instances where increased usage is simply not allowed.  This could include homes located in the floodplain, or in the Missoula Wastewater Treatment Plant Service Area.

We have received this information from the Missoula County Health Department, and they would strongly encourage anyone who is considering a change to their home to contact the Health Department prior to modifying the home.  This will ensure that the permit is still valid, and if not, what needs to be done.  It also will verify that the wastewater coming from you and your home is adequately treated before entering the aquifer that we all drink from.

There is a sanitarian available at the Missoula County Health Department from 8:00 AM to 5:00 PM, Monday through Friday (with the exception of the Noon hour).   The contact phone number for the Health Department is: (406) 258-4755.

Here is the pertinent information:

Date: September 16-17

Time: Fri. 10 AM – 5:30 PM / Sat. 9 AM – 4 PM

Location: City Shops, 1305 Scott Street, Missoula, MT

No charge for the following items:
-Oil-based paints/stains (no latex)
-Used solvents (paint thinner, degreasers)
-Household rechargeable & button batteries (alkaline can be thrown away)
-Aerosol paints (spray small amounts onto cardboard and throw empty cans away)
-Fertilizer
-Pesticides that are no longer registered for use by EPA (like DDT)
-Mild acids/bases
-Used oil, Antifreeze and fuels (15 gal. limit) in no return containers (DO NOT MIX)

Items accepted for a fee (County residents pay about one quarter of the cost / Business & Out-of-County pay for all waste):
-Pesticides currently registered by EPA
-Mercury
-Poisons
-Strong acids (nitric, sulfuric, hcl)
-Strong bases
-Chlorinated solvents

Items not Accepted:
-Latex paint (use, give away, solidify with cat letter & throw away or contact Home Resource 541-8300)
-E-waste: Best Buy, P.E.T.E.S., Allied Recycling
-Car Batteries: Recycling centers & battery stores
-Fluorescent Tubes: P.E.T.E.S.
-CFL bulbs: accepted for free at Ace, Home Depot & Lowe’s
-Asbestos: call Allied Waste (543-3157)
-No drums of waste will be accepted

*For more information, or if you have questions, please call (406) 258-4890.

In comparing the Missoula, MT real estate market from last year to this year, I prepared a chart showing the period from 1/1/2010 to 7/25/2010 as compared to 1/1/2011 to 7/25/2011 (all data is from the Missoula MLS).  Please keep in mind that this is only a “year to date” comparison, so not all sales from last year are included.  Keeping that in mind, the following chart does help to see where we are today, versus the same time last year, by neighborhood with regard to number of sale, average and median prices and the average days on the market.

Please keep in mind that the descriptions of the areas are very general, if you want further clarification, please click here, or feel free to contact me.

As always, if you would like an overview of your neighborhood, or would like me to analyze active, under contracts or solds over a certain time period, please let me know and I would be happy to help.

Many buyers who are in the market are operating very cautiously when it comes to making offers on properties.  Maybe they have already been through a monetary loss on a property and want to make sure that they are minimizing the risk on the next property.  Or, they may be watching the local and national news regarding home values.  No matter what the situation, Buyers definitely want to educate themselves as much as possible before purchasing in this market.

Many Buyers have been out there looking at numerous properties, waiting for the “right” one, which definitely takes into consideration price, condition and location.  Buyers look at listed price, and compare homes to each other based on the listed price.  So, that being said, many times an overpriced listing will really help sell a comparable home that is priced more competitively.

When a home is priced competitively right from the start, it seems to get a better response than if the home is overpriced, and then reduced.  Along those lines, I can point out three examples that I know of over the last 6 months in Missoula, MT that have sold for a price over the listed price, because the Seller priced the home competitively and created a situation where more than one party wanted to purchase the home:

• A three bedroom, 1 bath home, with approximately 1,300 square feet of living space, in the Lewis and Clark neighborhood was listed for $159,000 and was under contract in one day.  It sold for $160,000.
• A two bedroom, 1 bath home, with approximately 770 square feet of living space and an unfinished basement, in the Lewis & Clark/Russell area was listed for $159,900.  This home was under contract in 10 days and sold for $160,000.
• A four bedroom, 3 bath home, with approximately 2,870 square feet of living space, in the Grant Creek area was listed for $397,000.  It was under contract in two days, and sold for $410,000.

While there is certainly no way to guarantee that a situation like this one will arise, I want to point out that this does still happen with homes that are competitively placed in the Missoula real estate market.

It is also important to note that if a homeowner is going to be selling a home and purchasing another one, it is quite likely that the loss they may see on the home of their current home could be regained when they purchase their next home.  Market fluctuations can certainly provide difficulties, but they also provide many opportunities.  The Missoula real estate market is very active, it has just adjusted from the mode of operation of past times.

Sale Fails Due to Inspection Items:

Many of these types of situations are a direct result of information obtained concerning the condition of the home by way of a home inspection.  If something is learned at an inspection, the next step is for the Buyer to provide the Seller with a Inspection Notice, which states (1) what the problems are; and (2) what remedies the Buyer wants in order to proceed with the purchase, or that the Buyer wants to terminate the transaction.

If the Buyer has a resolution to the problem on the Inspection Notice, then it is up to the Seller to either agree to the remedy, or the Seller can counter back with another solution, or simply decide to do nothing.  Ultimately, as long as the Buyer is within the dates set out in the Buy-Sell Agreement, the Buyer has the right to terminate the real estate transaction for inspection issues.

So, as a Seller, how can you avoid surprises on an inspection?

Many Sellers are choosing to do a pre-listing home inspection in order to bring issues they may not be aware of to light prior to entering into a contract with a Buyer.  In this scenario, a Seller can fix items they are able to.  And, if they are not able to fix an item, they can disclose it on the property disclosure and see if the Buyer will either assume the problem, or see if there is a way that a fix can be achieved through the sale/purchase (an example would be paying for a new roof out of the closing proceeds).   It seems that Buyers feel much more secure dealing with problems if they know about them upfront, and feel that the Seller is being forthright and honest with them.

Sale Fails Due to Financing Problems:

In this era, there have been more problems due to financing than we have been used to in the recent past.  Part of this is due to the changes in the financing industry, and the regulations that have been placed on lenders.  Every Buyer should be in to speak with their lender and get a pre-approval letter to provide with their offer to a Seller.  As a Seller, if a Buyer is not able to produce this letter, you should use extreme caution in contracting with that Buyer.

What if it is a cash buyer?

Buyers who are paying cash for a property are wonderful, there is no denying it.  If the cash exists, and is able to be used for a real estate purchase for the Buyer, this is a great situation.  Again, however, it is imperative that, as a Seller, you are sure that the cash truly exists, and that it is in an account that allows it to be used for the purchase.  We have handled this situation in the past by requiring that the Buyer provide us with a bank statement showing the balance, or letter from the institution where the money is held.  We had a situation in the past where a Buyer came in to write an offer, and had verification of the existence of funds.  However, it was in a trust fund that did not allow her to use it for the purchase of real estate without the agreement of others involved in the trust.

Selling and Buying a home can feel overwhelming at times.  Our best suggestion is to avoid surprises as much as possible.  Most problems are able to be fixed, and every home will have problems of varying degrees.  The availability of information upfront can help avoid situations that might make a Buyer feel “spooked” about the property and want to terminate the transaction.  Not all situations are fixable, and some issues are more important to some people than others.  But, all in all, these are a few tips that might set the transaction off on the best foot forward.