Kim Koppen\’s Blog

ABR. CRS. GRI… There are a myriad of Realtor ® and agent designations – enough to confuse anyone who is searching for the right real estate professional.   What do those strings of letters after real estate agents™ names mean to you if you want to buy or sell a home in Seeley Lake?   Here are 10 of the most popular designations and certifications you’ll come across to help you understand what they mean and how they™ll benefit you.

1. Accredited Buyer Representation (ABR): This Realtor has met specific educational and practical experience criteria, including completion of a 2-day Real Estate Buyer’s Agents Council (REBAC) core course, the REBAC web course, satellite television education programming, and one elective course. They’ve also passed a written exam on the legal and practical aspects of agency representation, have proven through 5 documented sources that they have met the practical experience requirements, and are a member in good standing with both REBAC and the NAR.
2. Accredited Land Consultant (ALC): According to the ALC, these professionals “aren’t just land sales professionals, they are the most accomplished, the most experienced, and the highest performing land sales agents.” Candidates have completed a total of six Land University courses, in a live classroom, online, and/or through their independent study program. Applicants must also have a least 3 years of experience in land sales or brokerage, and broker managers must have at least 5 years of experience.
3. Certified Commercial Investment Member (CCIM): Agents with the CCIM designation have completed courses covering Financial Analysis, Market Analysis, User Decision Analysis and Investment Analysis. A CCIM member is a “recognized expert in the disciplines of commercial and investment real estate. A CCIM is an invaluable resource to the commercial real estate owner, investor, and user, and is among an elite corps of more than 9,000 professionals who hold the CCIM designation across North America and more than 30 countries.”
4. Certified Residential Specialist (CRS): This is the highest designation awarded to sales associates, with less than 4% of Realtors holding this certification. It has been awarded since 1977 and recognizes agents who meet stringent requirements, such as 75 transactions within 5 years or $25,000,000 in sales in five years, among other stellar achievements.
5. Counselor of Real Estate (CRE): Membership in the organization is awarded by invitation only through peer, employer and client review. To be considered for membership, applicants demonstrate that they provide valuable and meaningful real estate counseling services to their clients or employer; they hold a senior position in a firm, are recognized for their excellence, knowledge, integrity, and judgment; have at least 10 years of experience in real estate and 3 in counseling.
6. Graduate, Realtor Institute (GRI): This designation is for Realtors who are involved in residential real estate, who want a solid educational base of information for their practice. According to the National Association of Realtors, “The GRI program includes 90 hours of coursework on topics from marketing and servicing listed properties to real estate law.”
7. e-Pro Internet Professional: This training program helps certify real estate professionals and teach them how to thrive in our ever developing technological world. This course teaches how to make an Internet presence, master email communication, create a web-marketing plan, and how to use aspects of ancillary technology such as PDAs, Smart Phones, Digital Cameras, Virtual Tours, and MLS systems.
8. NAR’S Green Designations: Realtors with this designation have completed 12 core course hours and 6 elective hours in either residential, commercial, or property management. These agents are considered community leaders and resources for sustainability issues. They understand how to seek out and market properties with green features.
9. Short Sales & Foreclosures Resource (SFR): These agents must be a member in good standing with the National Association of Realtors ®, complete a qualifying course on the topic of short sale and foreclosures, view 3 1-hour webinars, and successfully submit their application and be approved.   This designation promises that the agent will know how to direct distressed sellers to finance, tax, and legal professionals, qualify sellers for short sales, negotiate with lenders, protect buyers, and many other skills that will be useful in today™s market.
10. Seniors Real Estate Specialist (SRES): This agent is trained to address the needs of clients aged 50 and up. They have been educated on such topics as housing, finance, and retirement income considerations, as well as the differences in housing options from age-restricted communities to age-in-place to assisted living. They know about reverse mortgages, pensions, 401k accounts, and IRAs, and can tell you how real estate decisions can be made by Medicare, Medicaid, and Social Security.

Are you dreaming of buying a vacation or second home in Seeley Lake?   Contact me, Kim Koppen, and let me be your local real estate expert.   I™m experienced, hold several of these designations, offer top notch service, and am ready to help you with all of your home buying needs!

The weather in Seeley Lake may still have a crisp feeling, but for the most part, we’ve turned a corner.   The sun is shining, the snow is melting, hibernating animals are waking, and the crocuses are poking their heads up through the ground; a long and cold winter is starting to wind down.   This Saturday marks the first day of spring, and it is a welcome change!

As we have come to expect every spring, the incipient balmy weather sprouts tulips, and is also likely to bring another species out of hibernation”househunticus americanus, commonly known as the North American house hunter.   These intrepid souls, no longer trapped indoors by snow banks, icy roads, and freezing rain, will soon begin venturing out in search of new lodging – maybe even vacation homes! And like all successful explorers, North American house hunters must be properly outfitted for their searches.

Are you among this species of house hunters?   First and foremost, you™ll need a means to plan your search.     Begin by finding a Realtor ® you like.   This is a critical step, as Realtors ® are invaluable guides who will provide you with detailed advice on how to search for and buy houses.   And, if you™re looking in an area that is new territory, you™ll want to be sure to choose a seasoned resident of the area where you want to buy.

You should also consider buying a map of the city where you’re planning your home search.   An experienced real estate professional can guide you to the areas that fit your needs, and you can self-search with sites like Google Maps and Mapquest.

Once you’re actually on your search, always keep a pad of paper and a writing utensil with you. These are useful for jotting down homes you see with For Sale signs.   You can then ask your real estate agent for more information on those homes.   And, if you find a home for sale by someone other than your Realtor ®, passing the address and phone number onto your agent is a great way for them to dig up the relevant information about the house for you.

Keep your pad and pen with you once you actually start touring homes, too. You™ll find that taking notes of things you like and dislike about the homes you see will be helpful; you’re likely to look at a lot of homes, and they may start to run together in your mind. Taking notes will not only keep you focused on the homes you’re seeing, it will give you a frame of reference to start narrowing your choices, based on what you™ve liked and what you didn™t.

Finally, as a smart house hunter, you™ll want to always take a digital camera with you on your search.   Like your notes, pictures will help you recall each house, and help to keep them separate in your mind. You can also use your camera to snap pictures of specific things you like or dislike about any home. Again, these will help you make your final decision after narrowing down the houses you’re particularly interested in.

That may seem like a short list”Realtor ®, map, paper and pencil, and camera”but with those essential tools your home search will be a breeze. When you™re ready, give me, Kim Koppen, a call.   I™m your Seeley Lake home expert and I™m ready to take you on the adventure of finding your next home!   Happy hunting!

It™s that time of year when people are starting to think about their spring break vacations, and many may be romanticizing about owning a   second home in Seeley Lake.   The recent economic downturn has likely discouraged some from buying a vacation home, however that tide is turning.   Today, conditions in the housing market have improved for prospective buyers (home prices and interest rates are lower than they have been in some time), and opportunities abound for those in the market for a second home.

There is one caveat: today™s borrowers must be patient, eminently qualified, and strategic about their housing choices.   Lenders are still holding to tightened lending practices, which means that those who want to buy will need to meet the banks™ new higher standards.   However, with mortgage payments so low for vacation homes right now, if home buyers are able to qualify and make savvy decisions, they will be rewarded with very affordable second mortgage payments.

With regard to lending requirements for second homes, Fannie Mae and Freddie Mac, the government-owned companies that essentially dictate the lending criteria for mortgages, have tightened their requirements for standard loans. Borrowers must now have credit scores of at least 660 and down payments of 20% to qualify; a year ago, the industry standard was a 620 or better credit score and at least 10% down (to avoid private mortgage insurance, or PMI).

Because banks consider loans on second homes riskier than those on primary homes, many lenders had opted not to take a chance on them in past months.   The requirements were changing so much that lenders were fearful that Fannie and Freddie would force them to buy back the loans if they weren™t underwritten precisely matching the specifications.   Since October of 2009, however, lenders have been more willing to process loans on vacation homes, and more deals are going through.   As a result, many new vacation home owners are finding some great deals in our current buyers™ market.

Are you considering a second home in the gorgeous Seeley Swan Valley?   Have you dreamed of owning a vacation home in Seeley Lake, but were unsure whether it was a good time to buy?   Give me, Kim Koppen, a call and let me help you determine the best options for your lifestyle and budget.   I™m a local real estate professional with expertise in second and vacation homes here in Seeley Lake, and I™d love to help you achieve your dreams!

Are you overwhelmed with what could be described as media-driven real estate malaise?   Everywhere we turn, we™re hearing about the recession and how today™s market is a buyer™s market, if you™re in a position to buy.   There is no doubt that real estate is a cyclical business – all of this has happened before, and it will likely happen again.   What goes up must come down, but what™s more important is, what goes down has always come back up. This is the case in Seeley Lake real estate, and I encourage you to reframe your thinking about the recession – consider that today™s market is ripe for you to trade up with your home and capitalize on the economic times.

Home values will most certainly continue their long-standing trend of appreciation over time, and equity buildup through paying down the mortgage remains a proven path to financial wealth. The key to making the most out of challenging economic times is having realistic expectations. You simply cannot sell high and buy low at the very same time. However, if you sell and then buy in this buyers’ market, you will get less from your sale but be able to make it up with greater savings when you buy.   Overall, homeownership is best viewed as a long-term investment.

The Hazard of Trying to Time the Market

If you™re a potential buyer who is thinking about waiting until prices come down more, you are also gambling that interest rates will hold steady or drop.   What many people fail to consider is the impact interest rates can have on the real monthly costs of homeownership. Even a 10% drop in home prices is immediately nullified by an interest rate increase of a mere 1% on a 30-year mortgage loan.

“Obviously, if you’re selling for less than you could have gotten three years ago, you’re disappointed, but you really need to look at your bottom line,” said Walt Molony of the National Association of Realtors. “If you’re trying to trade up, whatever you’re going to trade up to is going to sell at a discount, too. You need to look at your net.”

For example, a $250,000 median-priced home in Seeley Lake (where prices have declined 25% in the last few years) has lost $62,500.   But consider that if you’re moving up and buying a $600,000 house, which saw a $150,000 loss, in effect, you’re making $87,500.

Many smart buyers see the opportunity of a down market is the chance to trade up.   They understand that saving on the larger home purchase offsets any loss on the sale of their current home.   Today™s decreasing home prices are a tremendous opportunity for move-up buyers, and the prices won™t fall forever.

Are you considering trading up to a nicer Seeley Lake home?   Maybe you™re interested in making a smart move in a down market to buy a discounted vacation or second home.   If so, give me, Kim Koppen, a call and find out how I can help you with all of your Seeley Lake real estate needs!

In the wake of the latest economic crisis that has hit the housing market hard, banks are tightening lending practices, and those looking to buy a home are now having to be prepared.   When you™re looking to buy a home in the Seeley Lake area, do your homework and be sure to follow these tips to get on a healthy financial path to home ownership.

Get Preapproved.   Preapproval is a necessary part of the home buying process that helps save you time and money, and it is done by your bank, ideally before you start your house hunting in earnest.   Getting preapproved for a loan helps you to determine the price range you can afford and enables sellers to take your offer much more seriously.
Choose a lender or mortgage company wisely.   Before you have a signed contract to purchase a home, you must first choose a lender.   When you apply for a loan, you™ll be providing all of your financial information, including your employment, assets, and liabilities (including recurring debts like car payments, other loan payments, or credit cards).   The bank will also issue you a Good Faith Estimate (GFE) that will estimate certain costs you may encounter in the home buying process.
Stay away from borrowing the down payment without disclosing the loan, submitting fake letters of credit or gift lenders, or making secret financial arrangements.
Be accurate.   Be sure you list your income and assets correctly, as well as all the debts and amounts that you owe.   Your credit report will be examined by your lender, and they will be given information about your bill payment history, whether you™ve ever been sued or filed for bankruptcy, among other details.   You are entitled to a summary containing the sources of the credit report information and you have the right to dispute any inaccuracies.

With historically low interest rates, and federal tax incentives for first time and repeat buyers, now is a great time to buy a home in Seeley Lake!   If you™re ready to start your search, call me, Kim Koppen.   I™m ready to serve as your Seeley Lake real estate expert!   Also, visit my Great Bear Properties website for more tips for homebuyers!

You™ve heard the saying, œwhen life hands you lemons, make lemonade!   I think this principle applies particularly well to recessions and the   real estate market in Seeley Lake (and across the nation).   How?   Consider that whenever the economy hits a downturn, someone is having an upturn (for example, discount stores do very well in a struggling economy, even though big department stores suffer).   The same happens in real estate.

There are more than just a few people who are silently reveling in this recession because they are savvy enough to take advantage of it.   These same people will see big returns in the long term.   The trouble is, in a buyer™s market, many prospective home buyers make the mistake of trying to offer too far below the asking price for a property, and what they end up with is no deal at all.   So, how do you get a good deal and avoid wasting your golden opportunity in this recession?

Do your homework and think about properties on a relative scale.   What was the home you™re interested in worth in the last peak?   What does the market really say about what it is worth today?   If a home is listed at $200,000, but was worth $400,000 in 2006, you™re getting it at 50% off!   This should bring some perspective if you™re not happy about the prospect of offering close to asking price.

Position yourself to use your home as leverage in preparation for the next boom in real estate.   The market is a constant of waxing and waning – there will be a next peak.   If you choose wisely now, you could set yourself up to be in a much better position when the time comes.   Many buyers are surprised to learn that they can sell right now, even though their price will be less than the peak, and then re-purchase a bigger, better, newer home for close to the same monthly payment.

Consider the positive cash flow of investment.   Talk with your real estate professional about what kind of cash flow you could gain with investing in property in today™s market.   It™s a great time to invest, and many people all over the country are taking advantage.

By being smart about buying and selling in today™s real estate market, you could join the silent revelers and be glad you chose to make lemonade out of this recession.   If you have any questions or want to learn more about how we, at Great Bear Properties, can assist you, please contact me, Kim Koppen!   I™m your Seeley Lake real estate expert and I™m ready to help you with all of your real estate needs.

Buying a vacation or second home in Seeley Lake should be fun, not stressful.   To avoid turning your dream of spending more time with family and friends in a place you love into a buying nightmare, follow these helpful tips to minimize your stress and make the process of buying a house smooth and as easy as possible.

1. Find a professional real estate agent that understands your needs. Remember that buying a home is as much of an emotional commitment, as a financial one.   Your real estate agent needs to be both skilled in the market and have a personality that fits with yours.   Be sure to interview yours before you begin working together.
2. Remember that there™s no such thing as a œperfect time to buy or sell. If you find a home you love now, don™t make the mistake of waiting until interest rates lower or prices drop. A good home won™t stay on the market long, and while prices may drop a small percentage, interest rates are likely to go up.
3. Realize that there™s no such thing as a œperfect house. If the home you™ve found is in the right location, the master bedroom might be smaller than you had hoped. The kitchen may be a dream, but the carpet in the living room needs replaced. Before you begin looking, make a list of your top priorities and be willing to let the minor imperfections go.
4. Negotiate wisely.   By refusing to budge on your offer or trying to achieve an extra-low price, you may lose the home you really want.   While negotiation is certainly part of buying any home, remember not to lose sight of your goal by being too rigid.
5. Pay attention to more than the number of bedrooms and size of the lot. Don™t get so caught up in the physical aspects of the house itself, that you forget about important considerations like neighborhood, noise level, and nearby amenities.   All of these will impact how happy you™ll be in the home.
6. Think ahead. Get pre-approved for a loan before you begin looking for your home, and set a budget for your mortgage, insurance, and any other homeowners fees ahead of time.   And, if this is your second home (or vacation home), be thinking about any other costs, such as maintenance while you™re away.   If you know what your spending range is, you™ll avoid falling in love with a house you cannot afford, and your offer will be more attractive to sellers if your financing is already in place.
7. Choose a home first because you love it; then think about appreciation. While U.S. homes typically appreciate over the years (especially the longer you own the home), a home™s most important role is to serve as a comfortable, safe place to live.

Are you dreaming of buying a vacation or second home in Seeley Lake?   Contact me, Kim Koppen, and let me be your local real estate expert.   I™m experienced, offer top notch service, and am ready to help you with all of your home buying needs!

Mortgage rates in the United States have dropped to their lowest levels since the 1940s, and homebuyers in Seeley Lake should be taking advantage.   Historically, it is highly unusual for mortgage money to be available below 5 percent.   In the 1940s, average rates fell as low as 4.7 percent, as the government held down interest rates to finance World War II.   They stayed just below 5 percent until the early 1950s, then rose above that mark in 1952 – and stayed there.   Until recently.

The Federal Reserve program has driven rates to historically low levels.   This has involved buying $1.25 trillion in mortgage-backed securities, and is scheduled to expire in March – Fed leaders have said that it would not be renewed.   As a result, some analysts believe rates could jump as high as 6 percent in the spring.

I also believe that interest rates may be rising soon and urge you to consider the difference between an interest rate increase vs. a drop in property price.   For example, in Seeley Lake, let™s assume the average sale is $250,000.   With a 5% down payment at 5% interest on a 30 year fixed loan, your monthly principal and interest (P & I) payment would be $1275.   If rates rise to 7%, your payment increases to $1580 a month.

As a buyer, you may be on the fence because you think that prices may drop further and you can secure a lower monthly mortgage payment.   I do expect our market to drop again this spring as sales pick up, however, a rise in interest rates demands our consideration.   Think about this – if there is a 10% decrease in price so that the $250,000 home falls to $225,000, but you wait to purchase and the interest rate rises to 7%, your payment will be $1422 a month.   You then end up spending more money per month, and at a higher interest rate, thereby spending more money over the life of the loan.

Real estate appreciation is always a cycle, and as the economy stabilizes, values will level out.   Making a home purchase is a decision that should be weighed carefully and has different considerations for each individual homebuyer, but right now is definitely a great time to buy a vacation property or second home in Seeley Lake.   Not only will you gain a retreat for family and friends, you™ll be making a great investment!

If you™re ready to take advantage of some great deals and find a house in the Seeley Swan Valley?   Contact me, Kim Koppen, and let me assist you with all of your real estate needs.   I™d love to be your local real estate expert!

Maybe you™ve had your eye on our Seeley Lake area, and have even thought of buying a vacation home here, but were waiting for the right time to buy.   In real estate, timing is important, and you™ve been watching the market trying to judge the right moment to purchase in an unstable economy.   But just what is the right moment?

As an expert in real estate and our area, I believe now is a great time to buy a vacation property in Seeley Lake and the Swan Valley!   Why?   After watching real estate values decline and sales slow down over the past 3 years, sellers are finally realizing that the real estate market will probably not rebound overnight, but may actually continue to decline further when the spring buying season starts up.   Those who are serious about selling their homes are watching the market conditions and pricing their properties to reflect the realities they™re seeing, while serious buyers are getting ready to take advantage of  historically low interest rates, an abundance of inventory, and lower prices.

Maybe you™re convinced it is the right time to buy.   You™ve visited the Seeley Lake area in the past and would love to have a place of your own to return to, a vacation home that would enable you to share our gorgeous locale with your loved ones.   So how do you know which properties are the best values?

The most important thing any buyer can do is hire a professional realtor who is an expert in the market.   A realtor can show buyers what properties have sold for recently, how long the property has been on the market, and what the competition looks like for that price range.  Buyers also benefit from an experienced realtor who can  show them the trends in the market over the past several years to enable them to make the most educated decision possible.

Are we at the bottom of the market yet in Seeley Lake?   I wish I knew!  I don™t know if anyone will be able to predict when that will happen.   As a professional real estate expert here, I saw a dramatic surge in appreciation in our local market over a 3 year time period (from 2004-2007).   Because of this fast rise, I expect that our market will take several years to work its way back to a more sustainable level.   What I can say with confidence, however, is that it is clearly more affordable to buy a vacation home in Seeley Lake now than it was 3 years ago!

If you are considering buying a home in Seeley Lake or the surrounding area, I™d love to be your local real estate expert!   Give me, Kim Koppen, a call and find out what I can offer you as your realtor.   Let the experts at Great Bear Properties help you achieve your dreams!

Often, in real estate, great emphasis is placed on location, location, location.   Here in gorgeous Seeley Lake we certainly have all the benefits of a beautiful and exciting location.   Location alone, however, is not the only key to real estate; proper pricing is critical.   So, what™s your home pricing IQ?   Here are two important tips to help you price your home for a successful sale:

• Set the price after doing your homework.   Pricing should be based on the value as determined by the Comparative Market Analysis (CMA), which shows what other comparable homes in the area have sold for, how long they were on the market, and how much the property was discounted before it sold.   To successfully sell a home, the sale price must reflect what the market will bear.
• Set the price right from the start.   The goal is always to sell quickly and for as much money as possible.   While many sellers want to set the price high and come down later, the only time they can afford to do this is in a market where prices are rapidly appreciating and inventory is low.   The current scenario in the Seeley Swan Valley (and in much of the nation) is just the opposite; the values have been declining and the inventory is high.   The chart below shows how important timing and smart pricing go together (notice how a new listing generates the most interest in the first few weeks, increasing the chance for a sale).

Pricing your property at market value when it initially comes on the market is the single best pricing strategy – homes that are listed at market value stand out from the competition, especially among all the other overpriced options. And, when the asking price can be supported by the most recent comparable sales, there is no need to œpad the listing for a negotiating allowance. As a result, the overpriced listings create a real pricing advantage for homes priced at fair market value, increasing their likelihood of a quick sale.

The graph below illustrates the importance of pricing a home well.   It shows that more buyers purchase their properties right at market value than above it, which means that pricing a home to sell at market value exposes it to a much greater percentage of prospective buyers and increases the chance for a sale.

Are you ready to sell your Seeley Lake home, or interested in finding a house in the Seeley Swan Valley?   Contact me, Kim Koppen, and let me assist you with all of your real estate needs.   Together, we can achieve your dreams!