McCall Idaho Real Estate

Whether it’s the state of the economy or because you just don’t get around to using your vacatin home a lot, you may find yourself thinking for the first time about renting out your vacation home.

Log Cabin for sale in McCall

lots of consumers who already own and are looking to start renting  should follow these guide lines. The financial benefits  can be good and with thorough preparation, the process usually runs surprisingly smoothly.

Five things to know about getting ready to rent out your vacation home:

1. Find out if there are any legal prohibitions or restrictions on short-term rentals.

You’ll definitely have to check with your city government.  Some towns may limit the number of weeks per year you can have short-term renters, and some of them may charge special taxes. Some towns limit the number of unrelated adults who might occupy a dwelling, she said. The same questions need to be asked of your condo or co-op board or homeowners association,

Some  markets will require you to have a business license and collect sales tax, a tourism tax, a bed tax, etc.

2. Get the place ready.

You’ll have to depersonalize it a bit and you’re going to have to take the toothbrushes out of the bathroom, sort out your closets, get the drawers cleaned out, remove family pictures, and clear out the refrigerator. Anything you leave will be considered fair game for renters to use.

HomeAway.com and other rental sites provide checklists of furnishings and implements needed for renters’ use.

You want to double what you ’sleep, if your place sleeps six, you want 12 forks, 12 knives, etc.

Plan on a certain amount of wear and tear, replaces towels annually, get good, fluffy ones. Renters expect good quality. The sofa might need to be swapped out every 2 1/2 years.

3. Some financial considerations:

Decide on the rental amount by checking for comparable rentals on the Web or by calling local property managers. Typically, managers who provide rental services will charge the owner a percentage of the rent.

The size of rental deposit can be a sticky issue,  for new people who are renting: take $200, or 10 percent of the rental cost.”

A housekeeper who will come in between rentals is a must,  that’s the most difficult part of starting to rent.  The homeowner needs to find someone who’s reliable and can report on the condition on the place between renters.

When mechanical problems arise, sometimes the solution is as easy as dialing for a local plumber or heating contractor.   Some homeowners prefer to contract with a maintenance company to be on call, handle yard work, etc.

4. The property must be marketed properly, whether you’re handling the rentals yourself or using a professional company,

Would-be renters want information about nearby transportation, shopping, entertainment, beaches, skiing, etc.

They also want to see photos of the place.   The photos should include an exterior view, and if there’s a scenic view, include it.   They’re also concerned about seeing adequate seating in the living room, the comfy-ness of the master bedroom and additional bedrooms, and the workability of the kitchen.

5. How to screen the renters?

The Internet is a great starting point for finding renters, but the phone is a must many agencies say.

Ask them why they’re coming to the area, and (if) they’ve ever been in a vacation rental.  If not, then it is good to go through a few more things. They might not realize the nuances of staying in a vacation rental that are going to be a bit different, such as the cancellation policy, and that there’s nobody on the premises to field questions.

Idaho ranks number five in the nation when it comes to foreclosure filings. According to RealtyTrac’s U.S. Foreclosure Market Report for July 2010, filings increased nearly 7.5 percent from July 2009 and were up nearly 19 percent from June 2010. 975 notices of default were filed statewide during July. One in every 240 homes was affected by a foreclosure filing statewide during the same time period.

Marc Lebowitz, executive director of the Ada County Association of Realtorssaid in July that 46 percent of all sales in Ada County were distressed properties. Lebowitz said a distressed property could be a property in short sale, in the process of foreclosure, or bank-owned.

Of the active inventory of single family homes currently listed through the Intermountain Multiple Listing Service, 38 percent of them are in distress in Ada County.

“It was the highest in the spring. It has been drifting downward ever since. It’s not a drastic recovery, but it hasn’t gotten worse,” Lebowitz said.

Intermountain MLS CEO Greg Manship said from January to July 2010, 19 to 22 percent of listed single-family homes were bank-owned. The Intermountain MLS encompasses the southern part of Idaho, extending from eastern Oregon to Twin Falls.

The top three states with the highest number of foreclosure filings in July were Nevada, Arizona and Florida.

Homeowners at Tamarack resort want to resurrect ski lift operations next winter and are asking the state, a bankruptcy judge and creditors who are owed hundreds of millions to go along with their plan.

The Tamarack Municipal Association, which represents property owners at Tamarack Resort in Donnelly, said they’d use some of their reserves to initiate a four-day, Thursday-through-Sunday ski season starting in December. The resort hasn’t had a ski season since mothballing the lifts in March 2009.

Its majority owner, Jean-Pierre Boespflug, is trying to find a buyer while the resort’s finances are sorted out in bankruptcy court.

Zurich-based Credit Suisse Group is among dozens of creditors trying to recover hundreds of millions in unpaid debts.

The homeowners said Thursday they have a business plan showing they could break even.

Two ski lifts that are subject to litigation because Bank of America Corp.’s leasing unit wants to repossess them wouldn’t be operated, according to the plan. The five lifts that would be used provide access to most of the skiing terrain on 7,700-foot West Mountain.

The homeowners would likely have to work out an agreement with the state, because the resort failed to pay its $250,000 annual lease for state land where most ski runs are located, and another payment is due next year. Homeowners pledged to make a “substantial payment” in exchange for a winter recreation season.

“That’s one of the things that will need to be resolved,” said Scott Peyron, a spokesman for the homeowners who hope their proposal can go before the Idaho Land Board in September.

Season passes would cost $199.

George Bacon, director of the Idaho Department of Lands, didn’t immediately return a phone call seeking comment.

A Credit Suisse Group spokeswoman in New York declined to comment.

Last year, the bank opposed a previous plan by some owners to fire up lifts with a $7.9 million loan from a Mexican real estate investor. That deal collapsed amid opposition from the Swiss bankers to provisions ensuring the Mexican lender would be repaid before other creditors who are already owed more than $300 million.

Peyron said the homeowners aren’t asking for similar concessions with their latest proposal.

Boespflug told The Associated Press Aug. 5 he supports this proposal, in part because operating ski lifts will help make the resort easier to market to potential buyers and because it will help prop up flagging property values of homes whose prices collapsed when the lifts were idled more than a year ago.

Boespflug has so far been unable to find a buyer, amid a complicated tangle of demands from a syndicate of lenders – headed by Credit Suisse – who want their money back.

“There is nothing to report on this process,” Boespflug said.

U.S. Bankruptcy Judge Terry Myers would also have to agree to the homeowners’ plan.

In April, Myers agreed to give Boespflug a chance to reorganize Tamarack’s debt and ask creditors to modify terms of loans, rather than holding a fire sale.

On Aug. 2, Myers gave Boespflug another 90 days to resolve lease issues with Idaho over 2,124 acres of state-owned land, according to federal bankruptcy court documents.

Home on over 3 acres

Sales of foreclosed properties and homes  continue to dominate the real estate sales market, according to the latest figures from the Multiple Listing Service of the Mountain Central Association of Realtors.

A total of 211 homes were sold in the first six months of 2010, a 51 percent increase over the 140 homes sold during that period in 2009, the MLS figures showed according to the Star News. 

Almost  two-third of this year’s sales, or 132 transactions, were distressed properties either bankowned or a short sale.

The MLS report covers sales from Cascade in the south to Riggins in the north and includes McCall, Donnelly and New Meadows.

With the foreclosure sales included, the total sales for January through July passed the 182 homes sold in all of 2008 and began to approach the 247 homes sold in all of 2007.

However, taking out the 132 distressed sales brings the total for this year down to just 79 sales, or about half of the 2009 total to date.

The most homes sold were in McCall (95) followed by Donnelly/Tamarack Resort (73), New Meadows (24) and Cascade (19).

Teh median prices for homes were $199,500 for McCall, $187,500 for Donnelly or Tamarack Resort, $81,000 for Cascade and $146,000 in New Meadows.

Sales of bare lots faced the same skewed figures due to foreclosed properties.

A total of 98 lots sold in the region during the first six months of 2010 compared to 44 lots sold in 2009.   53 of those

lots, just over half the total, were bank-owned properties or sold at auction.

With the recent news of the European Debt Crisis and the Chinese Labor Crisis the mortgage bond market has seen quite possibly the biggest rally in 40 years.  Valley County has seen some stabilization in real estate this past year but we are still in a buyer’s market and interest rates are now at an all time low.

 There hasn’t been a better or cheaper time to look at buying a second home, investment property or primary residence.  The average loan for a second home purchase or primary residence at 80% loan to value has been hovering around 4.5%!  

The mortgage bond market seems to be stabilizing in the upper 4% realm and we’ve enjoyed almost three weeks of these record low rates.  If you’re considering buying an investment property, this rate cycle has the best time in almost three years to buy or refinance.  Prior to this dip it was impossible to get an investment property rate under 6% and we have been doing refinances and purchases around 5.25% with 25% equity in the property. 

 It’s hard to tell how long this cycle will last.  Things can change by the hour and this is by far the longest cycle of sub 5% rates.  As the economy picks up, rates will go up with it.  If you have any questions about financing a second home or investment property I’ll be glad help out any way I can.  mailto:ghubner@frontiernet.net

Brundage Mountain Resort is offering free chair lift rides for bikers, and others, on July 1st to kick of the biking season. 

Whether  you’re looking for a relaxing ride in a gorgeous setting, or the adrenaline rush that only a high-altitude adventure can provide, Brundage Mountain’s lift-served mountain biking has it all.

The high-speed chairlift whisks you to the 7,640 foot summit, and the rest is up to you and gravity. With more than 20 miles of hand-built single-track downhill trails, there’s a route to fit nearly every experience level.

Novices can work out the kinks on the scenic Elk Trail, which gently winds its way down through scenic forests and meadows.

Extreme thrill-seekers can test their mettle on Zorro, a technical route that takes full advantage of gravity’s pull.

With access to hundreds of acres of Payette National Forest and a vertical drop of 1640 feet, mountain biking at Brundage is sure to satisfy your sense of adventure.  Visit the Brundage Mountain website for all the rates, rentals and all the rest at http://www.brundage.com/

National home prices posted annual gains for the second month in a row during April, although prices were lower in 24 of 50 states, according to the home-price index maintained by CoreLogic.  

CoreLogic is  a leading provider of information, analytics and business services.

The home-price index showed home prices nationwide were up 2.6 percent from a year ago in April — a reflection of “the lingering effects of the homebuyer tax credit,” said CoreLogic Chief Economist Mark Fleming in a statement.

“We expect that we will see home prices remain strong through early summer, but in the second half of the year we expect price growth to soften and possibly decline moderately.”

Even with recent gains, the index showed national home prices down 29.5 percent from their April 2006 peak.

The 10 states with the greatest annual price appreciation during April were:

1. Hawaii (13.4 percent)
2. Massachusetts (7.4 percent)
3. California (7.3 percent)
4. Virginia (6.5 percent)
5. New Hampshire (5.2 percent)
6. Maine (4.8 percent)
7. Ohio (3.9 percent)
8. Missouri (3.8 percent)
9. Rhode Island (3.6 percent)
10. Nebraska (3.6 percent)

The 10 states with the greatest annual price declines during April in CoreLogic’s home-price index were:

1. Idaho (-7.2 percent)
2. Illinois (-5.8 percent)
3. Nevada (-4.6 percent)
4. Maryland (-4.3 percent)
5. Washington (-3.7 percent)
6. Pennsylvania (-3.7 percent)
7. Mississippi (-3.7 percent)
8. Florida (-3.5 percent)
9. Alabama (-3.5 percent)
10. Oregon (-2.6 percent)

How you’ll maintain your vacation home might not be at the top of the list as you shop for a beach cottage or mountain cabin, but it should be. You’ll need to devote time and money to handling routine home maintenance and responding to emergencies.

Hiring a professional property manager can ease the maintenance burden, but not the price tag. An informal arrangement with a local caretaker can be cheaper. Doing the work yourself can be cheapest of all, but the logistics get complicated if your vacation home is far away.

Property managers: Convenience at a price

Hiring a property management company for your vacation home can be costly, but it can save a lot of effort (and headaches) on your part. A property manager can open and close your vacation home, and screen and hire a staff to make sure your house is well-maintained inside and out. If you plan to rent out your vacation home, a property manager can advertise the rental, check in guests, and handle payments.

A property manager acts as your eyes and ears, doing regular drive-bys and responding in emergencies. This is especially important if you live far from your vacation home. Ask owners of nearby vacation homes for referrals. Membership in a trade group like the Vacation Rental Managers Association adds to credibility.

Property managers don’t come cheap. According to Christine Karpinski of HomeAway, a vacation rental website, property managers typically get 20% to 60% of the rental income from your vacation home. So if your ski chalet rents for $1,000 per week, expect to hand over anywhere from $200 to $600 of that income to the property manager.

Local caretakers can be cheaper

A cheaper alternative to a property manager, especially if you don’t plan to rent out the house or will handle rentals yourself, is hiring a local housecleaner or handyman to maintain your vacation home. Again, other homeowners are the best source for referrals. Even during the offseason, it’s a good idea to have someone local who can go to the house once a month to turn on faucets, flush toilets, and inspect for damage.

How much you pay will vary by location and the nature of the caretaking tasks. A recent survey of cleaning fees put the cost between $69 for a 1-bedroom home and $199 for a 6-bedroom. A rule of thumb for calculating cleaning fees is to multiply the number of bedrooms and bathrooms combined by $20.

Since you’re entrusting cleaners and handymen to go in and out of your home unsupervised, check references and ask for proof that they’re bonded and insured. A fee-free option is to rely on a neighbor. Work out an arrangement to check on each other’s properties regularly, rather than hiring someone.

Prepare for maintenance emergencies

Preventive home maintenance reduces the likelihood of emergencies, but a pipe is bound to burst eventually. As the owner of a vacation home, especially one that’s hundreds of miles away, the most important thing you can do is be prepared for the inevitable.

If you don’t have a property manager, caretaker, or year-round neighbor you can call, at least have a list of local repair companies at your fingertips. Invest three or four hours into assembling a list of plumbers, electricians, exterminators, and the like. Ask other homeowners for recommendations, or, if too few are forthcoming, turn to a service like Angie’s List or even the phone book.

Having a keyless entry system for your vacation home is critical in the event of an emergency. A basic touchpad model costs less than $100. You can give the code to a repairman over the phone. A wireless system, which allows you to use a computer or cellphone to change the entry code, can cost three times that amount plus a monthly service fee of perhaps $10 to $15.

the all-new 3rd edition of Mountain Biking in McCall is hot off the press.  Written by Steve Stubner the following was from his blog. 

Cabin for Sale in McCall

A big reason for owning a vacation home is rest and relaxation, but it’s not all fun and games. Opening and closing a vacation home takes time and money.

Plan to spend a day before the season starts to open your vacation home, and another day at season’s end to close it down. Specific tasks, such as draining off pipes or turning on utilities, will depend on climate, as well as when and how the vacation home is used. A beach cottage has different requirements than a mountain cabin.

 If you don’t live nearby or don’t want to do the work yourself, be sure to budget for a property manager or local caretaker. Opening a vacation home When it’s time to visit your vacation home for the first time, or start renting it out for the season, you’ll need to get it ready.

 A ski chalet might require you to shovel snow and chop firewood, while a summer retreat by the shore might call for cleaning patio furniture and staining the deck. Much depends on how well the house is maintained throughout the year.

 Opening your vacation home could be as easy as stocking the pantry, or if the house was neglected in the offseason, you could have multiple repairs on your hands. A well-maintained vacation home shouldn’t take more than a day to get in shape for the season, assuming no major repairs are needed.

Here are some typical opening chores: •Turn on utilities •Clean and stock kitchen and bathrooms •Look for evidence of plumbing and roof leaks •Cut lawn and trim shrubs/trees •Clear walkways and driveway •Set up outdoor furniture •Change lightbulbs and smoke detector batteries •Replace furnace filters •Check for signs of pest infestation

 Closing a vacation home

 Closing a vacation home also takes about a day to complete. The emphasis should be on safeguarding your home against the elements as well as fire risks. Here are some common closing tasks: •Turn off nonessential utilities •Secure all windows and doors •Turn on alarm system •Close storm shutters •Dispose of trash and perishable foods •Adjust furnace settings for climate •Bring in outdoor furniture •Unplug appliances and electronics •Drain water lines to prevent freezing (in cold climates) •Request mail-forwarding service.

 To deter vandalism and theft, consider installing a home security system. You can also put in automatic indoor lights that turn on at dusk or outside flood lights that are motion-activated. If the house is only going to be vacant for a couple of months, call your utility providers to see if discounted “vacation rates” are available. It might be cheaper than turning off services and paying a reconnection fee a few weeks later.

 Property manager vs. caretaker

It’s costly to hire a property management company to maintain your vacation home, including opening it and closing it. If you plan to rent out your vacation home, a property manager typically gets 20% to 60% of the rental income, according to Christine Karpinski of HomeAway, a vacation rental website.

 A less expensive alternative is hiring a local housecleaner or handyman to open and close your vacation home, and keep an eye on the property during the offseason. A good rule of thumb for calculating cleaning fees is to budget $20 for each bedroom and bathroom, so a 3-bed/2-bath home would cost $100 to clean.

If you live far from your vacation home, you may have little choice but to hire local help. Ask owners of nearby vacation homes for referrals. Look for a property manager or caretaker with good references who has been in business locally for an extended period of time. And no matter who you end up hiring, be sure that anyone coming onto your property to do work is bonded and insured.

 Donna Fuscaldo has written about personal finance for more than 10 years at the Wall Street Journal, Dow Jones Newswires, and Fox Business. She one day hopes to own a vacation home in the Catskills of New York.