Uncertain times increase caution

Folks are usually cautious when approaching an investment as significant as buying real estate, as they should be. Foreclosures in virtually every neighborhood would imply that caution is not always the dominating influence. As those foreclosures occur neighbors become more conscious of their own situation and begin to re-evaluate their economic position.

Some delay this intimate encounter with reality, but feeling compelled to have that serious discussion with yourself may be the first sign that you do need to have it. Many avoid it altogether. Few have the resources to survive a job loss or sudden disability while still making house payments, yet when an event of that nature occurs, some are prepared, some are not.

For many people a change of circumstance means trying to salvage what they can from what may have become a sinking ship. It's times like this that can cause them to grasp for solutions which can put them at risk of losing their homes to scammers.

Others remain hopeful that the market will return to the lofty prices commanded during the feeding frenzy of 2005-2006. This of course was the top of the market. If those same people are counting on that return to help them in the short term, to alleviate their current pressures, they are setting themselves up for disappointment. Some of them may lose property while waiting for a recovery to bring them a better price.

Foreclosures and short sales are predicted to keep downward pressure on real estate prices across the board. We have seen declines in all market sectors. Land, buildings, homes, businesses, all have been affected to a point where now, prices are near what they should be if the bubble had never happened and if we had maintained the modest increases normally seen as real estate appreciation. Many are taking losses to avoid worse outcomes.

There are a lot of people who see a return to normalcy coming although none can pinpoint exactly when. "Normalcy" however means normal conditions. No one is predicting ever seeing a run-up in prices like from 2003-2007. Without a predictable return to normalcy in all facets of our economy, the best form of caution is to seek expert guidance. Seek out people with experience in helping people in your situation, since the scammers are certainly seeking you out.

Realtors are knowledgeable in a variety of areas involving property ownership and private property rights and have received training on spotting scams. We have innumerable experts in a variety of areas of finance and property disputes as our colleagues in the Coeur d'Alene Association of Realtors and the National Association of Realtors. In addition to monitoring compliance with the law, these associations conduct business by a strict code of ethics. Every member must subscribe to this code, which helps you to minimize your risks. Confidentiality is high on the list so don't be afraid to share your story if you need our help.

Trust an expert... call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Kim Cooper is a real estate broker, Realtor and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your commentary and feedback. You may contact them by calling 667-0664 or by writing to them at 409 W. Neider, Coeur d'Alene, ID 83814.