Why am I actually surprised by snow in Montana?

Well, yes I live in Montana, and yes you would think that we would still be expecting more and more snow. Frankly I have a few, a very few, memories of snow in June or the 4th of July.
But, no matter how long I have lived in Montana, I am stilled surprised that this very morning it is snowing.
We have had months without snow and the last 2 weeks have been in the 40's and 50's. For Montana, in February, that is down right tropical. So what if the rest of the country has had snow lately, our tulips are coming out of the ground. Yesterday, I was contemplating how soon I could throw down seed. Wow, I really am slipping.
The stimulus bill has fried my brain and I have lost all logic, apparently including the understanding of when it should snow in Montana.

Well...... enjoy!

Seller Financing, nows the time.

So, the stimulus package does not offer the $15,000 credit that I had hoped, but it doesn't mean it isn't a good time to buy or to make some money.

Yes interest rates are low, but lending criteria is still tight. One alternative would be seller financing. I know quite a few people that make their living off of seller financing/private lending. What they do is carry the contract for the buyer and get paid interest like a standard mortgage except the seller is the "bank" so to speak. Now, some property owners don't mind lending because if the buyer forecloses, the lender/seller can turn around and resell the same property over and over. Now this will only work if the seller obviously has the cash to loan or owns the property outright, but it is a good alternative to conventional lending.

Again, don't get into a private contract if you cannot afford the property. No good will come out of that situation.
Items to remember when considering financing the buyer.

1. If you don't want to hold a 20 or 30 year contract, you can amortize the contract over 20 years with a balloon in 3 or 5 years. Just like your local bank can.

2. Always have a lawyer write the contract and oversee the negotiation with your Realtor. No, matter how smart you think you are.

3. Private Financiers usually can charge more interest then your typical bank or mortgage.

4. You might want to discuss the ability for the buyer to borrow more money against the property from a third party with your lawyer. You don' want a buyer to default and then you owe the 3rd party lender.

Seller financing isn't always the answer, but it is an option. And it might just be a way to extract money from your property instead of listing for a year or more.

Legislative session

So, legislative season is in full swing and has been since the New Year. Many people follow session, but even more, sadly, don't.
Whatever your political persuasion, following the bills on the hill bode well for our industry. I don' t have a current number but there are bills about mandatory builder home warranty, new meth disclosure and definition, property rights in subdivision regs, new streamside setback regulations, lack of accountability in the county government by allowing interim zoning without emergency measures, many of item and much, much more looking to change the face of home ownership and real estate in Montana.
It is no longer about listing houses, it is time to provide our customers the best representation and fight for those bills and regulation that protect the private property owners and the real estate industry.
In the state on Montana I have never seen such an attack on land use and property rights. If you have any questions or are looking into being involved in Montana or any other state feel free to comment or post questions.

Stimulus Package?

Waiting to hear on the new stimulus package. Really I have very little constructive criticism on the stimulus package, but I will try. Whether or not it will bring economic stimulus is the question of the hour.....frankly, probably not a lot. But, at this point I figure take what you can get. So, for housing this might actually help.
I have heard that there could be up to a $15,000 tax credit for a new home. Not on one you already own. This tax credit could be very beneficial to some. But, what happens when you sell your home? You will probably have to pay as much of the credit back out of your profit. If there is no profit, then there is no repayment. This was a condition when first throwing the idea of the credit around, but we will see what is in the final package. Obviously, my advice would be, be aware. If you take the credit, prepare yourself for what you pay when you resell. Either, put a little money aside each month preparing yourself for the repayment of the credit, put off selling your home until you have an immense amount of equity in your home and the markets are moving again, or don't use the credit.

Don't get me wrong, I think the buyer tax credit could be a very great tool. But, I am a firm believer in understanding completely what you are getting yourself into. It is never to early too plan you next step however lofty it might seem. Try not to get caught up in the hype, read the fine print and then make your government and their programs work for you.

At Exit Realty we make it our goal to get to know our clients. If a client needs a referral for an agent somewhere else, we do extensive research on different personalities of the agents and the clients. If you find yourself in a sea of Real Estate agents and don't know who to choose, contact me and I will find that perfect agent for you. If you are in Montana or across the nation, I will work hard to find you are rightfully represented.