Vermilyea’s Real Estate Blog

All over the world, individuals, corporations and nations are pledging to “go green,” but progress too often is slowed or stopped by lack of information, resources or precedent. A team of researchers at Boise State University has addressed these challenges in a new report titled “Green Building in the Pacific Northwest: Next Steps for an Emerging Trend.”

Focused on Idaho, Oregon, Washington and Utah, the report consolidates information about green building issues and opportunities facing communities across the region.

Researchers surveyed nearly 500 members of the construction industry and more than 300 local governments, providing an understanding of why green building is important to communities, a look at the emergence of green building standards, research evidence on the obstacles to and incentives for green building, and original research on green building in the Pacific Northwest.

Susan Mason, director of Boise State’s community and regional planning graduate programs, was an investigator on the study. She is an assistant professor in the departments of Political Science and Public Policy and Administration.

“This report encompasses one of the largest examinations of the aggregated voices of both the public and private sector on factors that affect green building,” she said. “Reports have been done on this subject, but not on this scale.”

One of the elements addressed in the report is lack of consumer demand for green building despite its prominence in the news and popular culture.

Anthony Marker, who also was an investigator for the study, is an assistant professor of instructional and performance technology. He said in a release that consumers are driving the green construction movement, but until there is more demand for green building, there will not be construction professionals skilled in its methods and suppliers creating green materials.

“It’s a chain reaction,” he said. “One of the primary barriers is the perceived cost the builder has to absorb on the front end, but the research doesn’t bear that out. While there is some small premium at first, a lot is captured in the learning curve. Once you get past that, the price difference between green and non-green is little to none.”

Marker added that lack of awareness and opposing interests regarding the comprehensive pros and cons of green building also hamper progress.

“Increased awareness will bring developers concerned about construction costs, owners concerned about operations and maintenance costs, and tenants concerned about worker productivity together for a discussion about balancing the relative costs and benefits of green building,” he said. “All should be able to come away as winners.”

In addition to exposing roadblocks, the report offers strategies for building urban landscapes that work better and smarter for everyone. Mason and Marker called it a starting point for formally identifying the next steps in making green building more likely.

“Cities wanting to address the biggest barriers see financial incentives as the key to promoting green building in the short term,” Mason said. “Over the long haul, cities see education about the benefits and practices of green building as essential to ensuring the desired return on the investment and meeting community goals - a perspective shared by developers.”

Strategies addressed at length in the report are:

• Marketing to increase public demand for green building
• Policies and processes to support financial payback for developers
• Information, demonstrations and training to encourage the adoption of green building
• Support for current users of green building and LEED certification to continue their use and advocacy

Source:  Idaho Business Review

For Boise Idaho real estate information or to search for Boise Idaho homes visit www.VermilyeaProperties.com

As lending requirements stay relatively tight for most consumers, the chance of borrowing outside the banking system from family or friends can be attractive. After all, it’s rare to see a parent or sibling demand a credit check or other lengthy documentation.

On the other hand, it could be one of the most dangerous financial transactions you ever make, simply because money can drive a wedge between relatives in even the closest of families.

There are good and bad aspects to private loans. The good news first:

Terms can be significantly friendlier than a borrower would qualify for in the open market. For example, the rate charged on the loan can be higher than the lender would receive in a deposit account but lower than the borrower would pay a commercial lender.

They can require little or no collateral.

It’s a way to keep money in the family.

It’s a way for a borrower to be able to buy a home, a car or other critical assets even with a poor credit rating.

There’s no loss of tax benefits to the borrower or lender if an agreement in the case of a mortgage loan is structured and reported properly.

Now the bad news.

Unclear agreements can lead to missed payments or default.

If the borrower dies suddenly, the lender’s investment may be lost if the agreement isn’t structured correctly. A properly executed promissory note is still an obligation of the estate, and may continue to be paid to an heir or other person or entity based on the terms as agreed.

Jealous relatives could say they weren’t treated fairly.

Disagreements between borrower and lender could kill an important relationship.

The best arrangements are formal - written in proper legal language, notarized and recorded in the county where the property resides. A financial advisor can talk to both parties about what such loans - particularly large loans for real estate or tuition - can mean for their respective finances.

It also makes sense for both parties to visit their respective tax professionals to make sure they know the correct ways to document the loan transaction over time for tax purposes.

A detailed document prepared with the help of an attorney or a certified public accountant can also lay out specific scenarios if either the borrower or the lender has to break or alter their agreement. Such trained experts can talk you through the benefits and pitfalls of a private loan arrangement as it affects your particular situation (either as lender or borrower) and specific laws and requirements in your state you have to follow if both borrower and lender are going to derive tax advantages from the agreement.

You should be aware that the IRS governs these interest rates and provides an annually updated table that you can get at http://www.irs.gov/app/picklist/list/federalRates.html - these rates are Applicable Federal Tax Rates (AFR). You can also forgive a portion of the loan each year up the annual gift exclusion, which is $13,000 this year.

Generally, any private loan transaction should include a promissory note that establishes how the debt will be repaid. That’s true for business loans or loans for most types of property. In the case of a business loan, it makes sense for potential borrowers to get specific advice on how lenders in their business will be treated, not only in terms of repayment, but default. These agreements are particularly important for tax purposes as well.

In the case of a loan made for real estate, a mortgage or “deed of trust” statement (depending on the state you live in) or an agreement specific to the type of loan that binds the property as collateral for the promissory note will be necessary. It basically says that if you don’t fulfill all the terms in the agreement the lender has the right to foreclose or repossess the property.

Even if a friend or relative makes an offer of help, it’s proper for the borrower to take the initiative to structure the arrangement in a way that’s responsible and beneficial to both. If a relative is drawing income from the loan, special provisions should be made for prepayment and other contingencies.

The most important thing to remember and plan for? When two people who are close to each other enter into such an arrangement, the most valuable thing really isn’t the money. It’s the relationship.

Source:  IBREALESTATE

For Boise Idaho real estate information or to search for Boise Idaho homes visit www.VermilyeaProperties.com

After a painful January, where the number of new home foreclosures in Canyon County rose 70 percent over the December number to 365, the total slid down 28 percent in February to 263.
These numbers come from a report from IdahoDataProviders.com, which tracks distressed-property statistics in Ada and Canyon Counties.
Ada County stayed relatively constant in January and February, up just 3 percent to 420.
“These numbers are holding true to IDP’s prediction that there will be a constant and record stream of distressed properties entering into the foreclosure pipeline and keeping inventory levels abnormally high in 2010, and that a bottom to the housing market and the beginning of a real recovery is unfortunately still at least one year away,” IDP President Charlie Nate said in a press release.
Short sale listings - where the home is listed for sale at a price lower than what the owner owes the bank - have leveled off, hovering at between 2,600 and 2,900 for the last nine months after a rapid ascent from about 650 listings in May 2008.

Source:  IBREALESTATE

For Boise Idaho real estate information or to search for Boise Idaho homes visit www.VermilyeaProperties.com

Some U.S. housing markets have faired quite well regardless of the economic turmoil of recent years. These markets share a few things in common: modestly appreciating home prices, a high affordability rating, better-than-average economic activity and a low foreclosure rate.

RealtyTrac, an online marketplace of foreclosure listings, estimates that 4.5 million foreclosure filings are expected in 2010, up from 2.8 million in 2009. This weighs heavily on the housing market. Foreclosures supply an excess of inventory that destabilizes home prices. Louisville, Kentucky, is fairing well partially because it has a 1.15% foreclosure rate, the lowest in the country, and about half the national average. Louisville — as opposed to some coastal cities and vacation destinations — never really encountered the boom and so it’s been less affected by the bust.

Midwestern cities such as Indianapolis, Minneapolis and St. Louis have among the best housing markets largely because they have some of the best housing affordability rates in the country. Indianapolis had the highest affordability with 96% of homes affordable to families making the median income.

According to Forbes, Pittsburgh, Pennsylvania, has the best housing market in the country for a host of reasons: the second lowest foreclosure rate, a housing affordability rate of 85%, home prices anticipated to increase 2.67% in 2010, and a diversified and comparatively robust economy. This stable economy is largely due to Pittsburgh transforming itself, over several decades, from a center of manufacturing to one of education and health care.

Stable economic activity is also boosting the real estate markets in Tacoma and Seattle, Washington. The housing market in Memphis has faired well and is expected to improve, largely because the city’s largest employer, FedEx, will be one of the first industries to rebound in the economy recovery.

For Boise Idaho real estate information or to search for Boise Idaho homes visit www.VermilyeaProperties.com

Knocking three times on a door may get you into a speakeasy, but if you want to get into your favorite Internet sites—your shopping sites, your online bank account, your social networks—use a sound, layered approach to Internet security.

That means, among other things, using passwords that will withstand efforts by online criminals who use their know-how or sophisticated software to steal them—and then your identity and your money. 

Not sure what you need to do to create an Internet-secure password? Here are five tips that may help you do so:

1. Create intricate passwords. Experts recommend that you use numbers, letters, and special characters such as $, #, %, and others, if the website allows them. 

And be sure to make the passwords long—8 to 12 characters or even more, if possible.

2. Don’t use words or numbers that are personal to you. The person who is trying to figure out your password may know not just your name, but also your birthday, or even your pet’s name, among other facts. If you use personal information in a password you could be making things too easy for a criminal. 

Nor is it a good idea to use words written backward: using retupmoc rather than computer as part of a password won’t fool a powerful password-cracking program designed to try millions of word combinations to solve a password. 

The better approach? Come up with a letter-number combination that does not contain a word that can be found in a dictionary, yet is personal, effective and unusual. Example: if you are a bike rider, you could use bikrr25mles. Do you read presidential biographies? Conjure up a password like prezadms1800. 

Better yet, mix upper and lower case letters: BiKkR25Mls, for example, could make for a password that is highly resistant to cracking. 

In fact, to create a truly hard-to-crack password, think about substituting the number 3 for the letter E or using $ rather than an S. Example: BiKkR25Ml$.

Once you create a password test it on a password testing site such as The Password Meter.* However, don’t use the actual password you created. Rather, test a variation that includes the components you chose.

Example: Rather than test BiKkR25Ml$, test DiMmR12R12On#. What you are trying to determine is whether your password is long enough and includes a good combination of letters, numbers, and characters.  

3. Create different passwords for different sites. If a hacker compromises the security of a site where you do business or conduct your social life, he could find your password and make off with it. If you have been using that password on other sites, your accounts on those could be compromised as well.

4. Change your passwords regularly. The longer a password is used, the greater the risk that it may be compromised. Consider changing them every three months or so.

5. Protect your passwords. Keeping a list of your passwords next to your computer—or even tucked away in the back of a desk drawer—makes it all too likely that the list could fall into the wrong hands. 

So, how do you remember a bunch of passwords and keep straight which one goes with which site? 

Your Internet security program may include a password vault or manager that can store long lists of passwords, secure them, and even automatically fill them in on websites you access. 

Or, consider obtaining free standing password manager software. Search the review section of cnet.com* for “password vault” or “password manager” to find recommended programs. Some cost a few dollars, but reliable free ones are available as well.  

You should also arm your computer with a powerful Internet security program that guards against viruses and other criminal software known as malware. Such a security program will stop hackers from placing password sniffers on your computer. These password sniffers can read passwords as you type them, then transmit them back to the sniffer’s creator. 

Tip: Before you try any of the ideas in this article and create new passwords, install Internet security software or update the software you already have. Then have the program examine your PC to ensure that a password sniffer isn’t lurking, ready to transmit your new passwords. 

If you do a lot of financial transactions online, consider dealing only with websites that use additional security measures that require you to answer specific questions to which only you know the answers.Vanguard and many other financial institutions use this layered approach to online security.

What would you like to ask us about the markets and about saving and investing in your retirement plan? Click “Tell us what you think,” below.

*When you access any of the sites mentioned in this article, you will be leaving our site. Vanguard is not responsible for the accuracy of information on third-party sites. Vanguard receives no remuneration for website links in this article. This article is for educational purposes only.

For Boise Idaho real estate information or to search for Boise idaho homes visit www.VermilyeaProperties.com

If you’re looking for happiness, you might find more of it by doing stuff rather than buying stuff.

That’s the conclusion of a 2009 psychology study that compared college students’ satisfaction levels with purchases of things (clothes, for example) versus purchases of experiences (concerts, for instance).*

Over the past 35 years, research has suggested that additional money doesn’t make people much happier beyond a certain point. Once the basic needs are met (clothes, food, shelter), increased income increases happiness only slightly.

 ”While the pursuit of money for its own sake may not lead to happiness, it may be that how a person uses their money can have an impact on their overall level of well being,” according to the study’s authors, Ryan T. Howell, Ph.D., an assistant professor of psychology at San Francisco State University, and Graham Hill, a graduate student at the university.

To test this thesis, the authors recruited 154 students from the psychology department at San Francisco State University to answer a lengthy series of questions about recent purchases. Roughly half were asked to focus on recent purchases of an experience. The rest were asked to focus on the purchase of a possession.

According to the study, students who purchased an experience were more likely to say it made them happy and was money well-spent. The positive feelings for experiences held up regardless of the amount spent or the student’s income, according to the researchers.

Treasured memories

Why would the purchase of experiences rate more highly than the purchase of things? Here are a few ideas:

• Experiences don’t get old. You can always laugh about the rafting trip where your best friend fell out of the boat. On the other hand, enjoyment of possessions has been shown to decrease over time. A big-screen TV will stop being special sooner or later and just be your TV.
• Experiences can be shared. You can bring your family with you on a hike through a national forest. You can tell the story about watching the space shuttle launch at any party you attend. Experiences give you the chance to strengthen interpersonal bonds and form new ones. A fancy gold bracelet may be a conversation starter, but a great story can be a better one.
• Experiences are unique. People are less likely to subject experiences to comparison. There may have been a lot of people on the cruise. But you’re the only one who saw the shooting star while enjoying a midnight dip in the hot tub. The natural tendency is to compare one’s possessions to others. Your enjoyment of a new car could be greatly reduced if your neighbor buys a better car.
• Experiences can’t be lost. You might always remember seeing the orchestra perform the 1812 Overture in the park with fireworks and cannons. If you buy a luxury watch and lose it, you’re left with nothing but regret.

What you can do

When deciding how to spend your money, it’s a good idea to consider what you’ll get out of the purchase. As we learn more and more about how people’s brains work, we’re learning how to anticipate our feelings.

You might expect the purchase of a new possession to make you happy. It may well do so. On the other hand, there’s a good chance spending money on a great experience will make you even happier.

So if you have a choice between buying a new pair of shoes or a pair of concert tickets, the concert tickets may bring you more human interaction, a sense of being alive, and happiness.  Unless, of course, your current shoes have holes in their soles. In that case, the warmth of a new pair of shoes may bring you greater happiness—or dry socks at least.

Source:  Ryan T. Howell, Ph.D.

For Boise Idaho real estate information or to search for Boise Idaho homes visit www.VermilyeaProperties.com

When my husband and I started to consider the possibility of buying our first home last September, we consulted a mortgage banker. The advice we received was: “Hurry! Buy now! The tax credit will not be extended and interest rates are going up!”

Well, we didn’t buy then. Fast forward six months to today, and here’s the situation: The tax credit is still there, interest rates are the same as they were in September, and with no sign of a slowdown in foreclosures or a boost in the job market, prices should still be low for many months to come.

Let’s add another factor to the equation. Once again, we’re staring the expiration of the first-time homebuyer tax credit in the face.

There’s no consensus out there about the effects of that expiration, but there’s the chance that competition will decrease for starter houses at that point, and prices could follow suit. In fact, various national experts are predicting a price drop of about 10 percent in 2010.

That leads to a question some buyers are asking themselves: Should I buy now and get $8,000 for free, or should I wait for the tax credit to expire and hope prices fall enough to make up for it and then some?

But then again, there’s no guarantee that interest rates will maintain their phenomenally low levels for much longer.

So here’s my answer to the conundrum: Any time I buy a house this year will be a great time to buy. If I can’t find a house that I love and can afford by April 30, that’s O.K. The steals will still be here for a while.

Source:  IBREALESTATE - Dani Grigg

For more Boise Idaho real estate information or to search for Boise Idaho homes visit www.VermilyeaProperties.com

Good news: The U.S. Department of Housing and Urban Development and the U.S. Department of Veterans Affairs have issued several new rules that will help loosen the tight credit markets.
1. Waiver of flipping restrictions
On Jan. 15, HUD announced a one-year waiver of the resale rules applicable to Federal Housing Administration-insured loans. FHA’s anti-flipping rules do not allow FHA-insured loans to be used to purchase a home if a seller acquired a title within 90 days of the date of sale.
To qualify for this waiver, the sale of the property must be an arm’s-length transaction with no commonality interest between buyer, seller or other parties participating in the sale transaction. If the new price exceeds the initial price by 20 percent or more, additional conditions must be satisfied, such as proof of the seller’s legitimate renovations or repairs that support the increase in value; if no such work has been performed, the appraiser must provide an appropriate explanation of the increase in property value.
2. New rules designed to help consumers better compare settlement costs
The most significant changes to the Real Estate Settlement Procedures Act have modified the manner in which settlement charges are disclosed on the new good faith estimate forms. As of Jan. 1, 2010, HUD’s new GFE form must be used in all residential mortgages.
HUD recently clarified the level of change it will tolerate on the new GFE. Depending on the type of settlement service, the charges quoted on the GFE fall into three categories: charges that cannot change on the GFE (HUD calls these “first bucket” charges); charges that can increase up to 10 percent on the GFE (”second bucket” charges); and charges that can change without regard to the amount stated on the GFE (”third bucket”). The loan origination fee would be a first bucket charge. Appraisal fees would be a second bucket charge. Daily interest fluctuation would be a third-bucket charge.
The intent of the new GFE is to disclose all charges in a simpler form so that the consumer can make an appropriate comparison of services provided by a variety of lenders. The estimates on the new GFE must be good for 10 business days and must be fully disclosed on the new HUD-1 settlement statement forms.
3. Disclosure of real estate broker commissions under RESPA
On Jan. 22, HUD’s general counsel issued a clarification of how real estate broker commission fees are to be disclosed on the HUD-1 settlement statement. RESPA now allows Realtors to charge a flat fee or a percentage fee, as long as: (a), the fee is disclosed in the listing or buyer’s broker agreement; (b), the fee charged on the HUD-1 form is equal to what was disclosed; and (c), the fee disclosed on line 700 of the HUD-1 is disclosed as part of the commission.
HUD goes on to state that RESPA does not prescribe how commissions should be distributed between the listing and seller brokers; therefore the division of compensation is negotiable.
4. New rules addressing the disclosure of VA origination fees on the new GFE
A qualifying borrower may be charged up to a 1-percent loan origination fee on VA loans, together with certain other allowable charges. But the new GFE form lumps all origination fees and other allowed charges into one category called “our origination charge.” The VA’s new circular explains how to properly identify these charges on the GFE when the origination fee, together with other allowable fees, exceeds 1 percent of the loan amount.
Two options are available: The lender can itemize the charges in section 800 of the HUD-1 settlement statement, or the lender can issue a separate origination statement, to be signed and dated by the borrower, indicating the purpose of the charges and the amount. If a lender chooses the second option, the HUD-1 should not be separately itemized.
While the VA is encouraging lenders to comply with its new rule immediately, lenders are not required to comply with this new rule until May 1.
Lenders are no longer required to issue an interest rate and discount disclosure statement for VA-guaranteed loans if the new GFE and HUD-1 have been used. But in all cases the GFE and HUD-1, as well as copies of any invoices for all third-party service providers, must be maintained in the file and submitted to the VA if a file is selected for review.
The residential mortgage lending community was hit hard when the housing bubble burst in 2008. HUD and the VA, however, are taking steps to help the market recover. Any questions should be directed to a legal representative.

Source:  IBREALESTATE - Hafez Daraee

For more Boise Idaho real estate information or to search for Boise Idaho homes visit www.VermilyeaProperties.com

Treat your garden like a blank canvas waiting to be filled with wonderful finds. Be on the lookout for pieces that are unique and affordable. You can begin by incorporating some rarely used home decor into your outdoor setting. Anything from an old teapot to a soup tureen can quickly become a quirky container. Rather than discard anything that is chipped or slightly worn, give these tokens a second chance to shine in your garden with your flowers and plants.

It also pays to take a second look at your home’s façade. Hang an ornate mirror to reflect your garden and visually expand the space. Adorn the exterior with dishes that sport a leaf motif, or hang a display shelf for a grouping of potted plants. When it comes to plantings, quality trumps quantity every time. You don’t need anything fancy or costly in order to make a statement. Look no further than Mother Nature for a vast array of colors and textures. A handful of hanging plants is all you need to make your front porch pop.

Though gardens tend to have their own agenda, it helps to start with a plan. Just as you would do inside your home, improve upon one outdoor area at a time. This strategy is bound to give you more bang for your buck. Go for some well-placed perennials to return alongside your annuals. And pay attention to the views of your garden from the main living areas such as the kitchen or family room. Frame that section with something special so that you and your guests can enjoy nature’s bounty from inside. You don’t have to spend a lot of time or money on your efforts. Something as simple as an old flea-market chair can become a pretty pedestal for a plant.

In fact, any outdoor focal point goes a long way toward creating a personality-packed garden without spending a fortune in the process. Select something sculptural, such as a beautiful bench or some artwork. Architectural remnants work well in a scenic setting and can be used as shelves for your plants.

Seasonal touches are a great solution for any budget because a few simple switches offer a whole new look and feel. Decorate with pumpkins and gourds for the fall and then change to some winter plantings for the holidays. At the first sign of spring, add some colorful plants, and, before you know it, your garden will be in full bloom for summer.

Vegetable gardens have become quite popular, and for good reason. They save you time and money and offer fresh food for the taking. Start with some easier varieties at first, such as lettuce and tomatoes, then progress to include other things.

Try something new and improved. For instance, flowerboxes are not strictly for windowsills. Place one on a picnic table as a centerpiece for a change of pace. You also can experiment with a rock or sand garden for a modern setting that doesn’t have to require a lot of spending.

Visit garden tours for inspiration. Trade plants, vegetables, and outdoor decor with friends and family members. Hold a swap meet with a group of gardeners in your neighborhood so that everyone gets to go home with something new. You can also share ideas and money-saving tips while you stop to smell the roses and admire each other’s hard work.

Source:  Your Home & Lifestyle

For more Boise Idaho real estate information or to search for Boise homes visit www.VermilyeaProperties.com.

In the Boise metro area, 34 percent of homes are now worth less than what is owed on the mortgage.

Homes in this category are referred to as “underwater” or “upside down” properties, and their ranks have been growing as home values have declined.

The Boise area’s performance has been worse than both the national average and the state average, according to national research firm First American CoreLogic. Nationally, 24 percent of all residential properties with mortgages were in negative equity at the end of the fourth quarter of 2009.  In Idaho, 23 percent of residential mortgages (53,663 homes) were under water in that quarter.

“Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners,” said Mark Fleming, chief economist with First American CoreLogic. “Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come.”

Source:  IBREALESTATE

For more Boise Idaho real estate information or to search for Boise Idaho homes visit www.VermilyeaProperties.com