Real Estate with Jim Quist

The first thing I think of when I say the word is Arnold Schwarzenegger, i.e., Governor of California and everybody's "Terminator".

The Exterminator came to mind recently as I'm in the process of doing some renovation to my own home and some of that work is to repair wood boring insect damage.  You may be saying, "Why not just call them termites"? Well, quite honestly that would be leaving out a multitude of organisms that can and will damage your home. Believe me, there are an awful lot just standing in line.

Now, before you think that your home is unlikely to have termites, or any of these other pesky "chompers" let me assure you that without the proper program in place you may well end up with some.

With warmer weather here are some things to start looking for....swarms of flying insects hatching near your house or other structure, an increased number of ants (crawling or winged) in or around your house and areas where the wood or drywall is soft or has what appears to be dirt buildup or residue.

A typical termite may be white and not overly fond of natural light. They tend to build tunnels and have quite an appetite. There are many types of pests so when you notice any activity you should call immediately.

You may see dirt tunnels or "chimney's" (as they build columns in which they can move to the next meal) just about anywhere.  I've personally seen tunnels extending 10 plus feet up a concrete wall in an abandoned gymnasium. I'm not sure they ever found that next meal in that direction.

Here are a couple of quick hints regarding in and around the house maintenance that will help reduce the attractiveness to termites.  I can't repeat this enough - don't put mulch around your house!  Mulch goes around plants out in the yard. When you put it up against your foundation you merely invite termites over to lunch.  Keep bushes and trees cut back. The moisture they hold against the foundation is carte blanche for the hungry. Make sure that runoff from your roof and yard is directed away from the foundation.  If there is a problem consult with a local contractor about installing a french drain.

Finally, I urge you to have frequent checkups for your house by a licensed professional exterminator.  They can address wood boring pests and other undesirables that may come your way as well. Much like your own health it is important to take a proactive approach with your house.

My dad is the perfect example of how homeowners and those who are looking for a new home feel right now. Nervous.

Everytime I stop by to visit he asks, 'how is the real estate market"?

He's been watching a lot of TV and listening to folks who are in the financial markets.  Unfortunately, none of them seem to be gainfully employed in the real estate field so it is much like me trying to represent you in court. Just don't go there.

I guess he has a very good reason to worry as this is what I do for a living....well, most of what I do. I learned a long time ago to diversify so that if one area "softens" then you can look to another to pick up the slack.

Well, I am the real estate professional and here's my take on the market. At least the area in which I live because otherwise I'm completely unqualified to speak about what is happening in Duluth or Boulder or for that matter anywhere outside of the area I focus on.  The market for sales of current inventory is simply "flat". At present.  Will it continue? How long will it continue? Oh, how I wish I owned the proverbial crystal ball.

Based upon trends and the information in hand it would appear that the current inventory of homes in these two markets will face challenges. There are more and more new subdivisions which pit old against new.  New almost always wins.

Now you may be that small percentage of buyer that likes an older home and is willing to pay the same amount of money for it as a new home plus sink an additional $50,000 into renovations but current trends have once again swayed back in solid favor of new. The return is much more favorable.  Let me add, developers are finally getting a grip on providing a product that you are going to have a hard time saying no to.

What does this mean for those trying to sell? You will wait longer to sell your home.  You will most likely have to drop your price.  You will be asked for larger concessions so be prepared.  You may need to invest in fixing up your place to make it more competitive. Finally, you may want to (if this is possible) sit, renovate and wait. 

Eventually the market will begin burning again.  Right now we have glowing embers and not the wildfire that has been running rampant for close to a decade.  Are values WAY off? No. Values are still very strong but you just won't see the enormous appreciation of years past. 

For buyers I have one question.  What in the world are you waiting on? Especially if you are a first time homebuyer.  If you are financially stable, have a good job and can afford some down payment then you need to take advantage of the multitude of great buys, superb loan packages and rates and get out of the bottomless pit of renting.

Back to my dad....everytime we drive through town together he comments on how little he could have purchased this house or that house for yea many moons ago.  When he asks me how much they are worth today he cringes.

Make an investment today. Look into buying but with the knowledge that it is currently advantage buyer and play your cards. Investing in your future is always scary. It isn't nearly as bad as NOT investing in your future.

Jim Quist, a licensed appraiser/consultant is co-owner of Quist Appraisals, LLC and a licensed real estate agent with Prudential Commonwealth Realty.  He is a past President of the local Realtors Association and is heavily involved in multiple community organizations.