Avoid Common Mortgage Mistakes in Black Hills Home Buying

We all make financial blunders in our life, wishing we hadn’t splurged on that TV or the impulse purchases we made at the grocery store. We learn from the small mistakes and move on. However, there are larger gaffes that we definitely want to avoid when buying a Black Hills home.

Over-Committing on Your New Home
While you may be able to afford that large house on paper, what makes sense for your lifestyle in everyday life and allotting for extra savings can be another thing. Buying too much house can leave you “house poor,” meaning your monthly housing expenses use up most of your residual income.

Don’t forget that owning a home means other expenses on that home each month and throwing all your income into a mortgage payment can leave you one emergency away from financial ruin. Make sure you have discretionary funds to cover your needs after you’ve paid the major expenses each month.

No one can predict losing a job or facing medical emergencies. Buying a home that affords you the space you need, the ability to update at your own pace and allows you to stay current on your new mortgage while meeting other obligations each month are the keys to being a successful homebuyer.

Skimping on a Home Inspection
In most areas, home inspections aren’t mandatory but that doesn’t mean they should be ignored. Professional inspectors have the expertise to uncover all types of defects and potential problems lurking in that potential new home.

Investing in a home inspection now can save you thousands of dollars in the long run. You can also use that home inspection report as a negotiating tool with the seller to get certain things fixed, negotiate price or to walk away completely from the deal if a major problem is found with the house.

Being Blind to Your Options
A local Realtor® not only can help you with their knowledge of local areas and where to buy, they can also help educate you on your home loan options.

Millions of veterans and service members have access to the historic VA loan program and may not know it. This program offers no down payment, no mortgage insurance and accepts lower credit scores than conventional financing.

There are other local and state home buying assistance programs that you may not be aware of that can help you with your new home loan including a USDA Rural Development Home Loan.

Learning all the mortgage options available allows for sound decision-making and a smooth pre-approval process to make the home buying process easier in the end while saving you money.

Be prepared and realistic with your home buying goals and trust in an experienced Realtor® to help guide you through the process. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact Jim Peterson at (605) 574-4444 or June Johnson at (605) 786-7356 at Integrity Realty Team, or email us to discuss how we can help you with all your real estate needs.

Our office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – ours are always open for your convenience! Like us on Facebook to stay current on all upcoming events!

South Dakota – Parent to New State Park?

South Dakota and the Black Hills are known for their wide open spaces, state parks, and beautiful backdrops everywhere you look. Now, South Dakota may become a proud parent to another state park with Spearfish Canyon in the Black Hills.

Homestake Mining Co. officials are in negotiations to sell two large parcels of their land located in Spearfish Canyon. These both would be placed into public ownership.

In a briefing last week by two top officials from the state Game, Fish and Park Department, the Spearfish Canyon Foundation would purchase a 73-acre tract, that includes Spearfish Falls, and donate it the department. This is according to Doug Hofer, director for the state Division of Parks and Recreation and likely largest builder of South Dakota’s system of state parks and recreation areas.

The property was appraised at $1,225,000 but foundation officials are attempting to secure it for a smaller amount, Hofer said.

This part of the canyon covers more than a mile and would connect two tracts that were previously purchased in 2004 by GF&P from Homestake at Roughlock Falls and Savoy. The combined totals would be 128 acres surrounded by U.S. Forest Service lands.

The department would also directly purchase a second pacel of 33 acres from Homestake including 3,200 feet of Spearfish Creek at the old Hydro 2 power-plant work in the Canyon. The appraisal currently is $430,000.

If you are ready to buy your new home in the Black Hills Area, I’d love to talk with you. Whether you are interested in homes in Hill City, Custer homes for sale, or Rapid City new homes, we can give you the most comprehensive listings that meet your criteria. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!

Successfully Buy or Sell a Second Black Hills Home from Afar

There’s a good portion of the Black Hills population that is made up of second homeowners.This is truly a great place to have a vacation home for both winter and summer activities! If you’ve been contemplating a vacation home, or if you’re ready to sell the Black Hills home you already own, you needn’t be worried about how to do that from another state. Here are some tips to help you on your way.

The first and most important thing to do is to retain the services of a professional Realtor® who is an expert in the area. Do a bit of research to find a person with whom you can form a solid working relationship and you feel comfortable with. Referrals from other out-of-state buyers and local homeowners are a great way to find a trusted agent.

While interviewing agents, be sure to find out specifically how they plan to work with you from a distance. The agent should be able to use both electronic and traditional ways of interacting with you. If you’re buying a Black Hills home, the agent should also be asking you very specific questions about the type of property, amount of land and specific areas where you want to purchase. They also should be educating you on the best communities to fit your needs and what to expect for each season in terms of weather and upkeep.

If you’re selling your home, the agent you choose should have access to reliable contractors to make any repairs that the home needs, and also to stage it so that it looks its best for showings. Make sure you have a plan for regular, frequent updates about the progress of your listing.

Any agent worth using will also be able to help you through the closing process with a reliable closing provider. You may want to ask for this up front so that you can do a little homework of your own before that time comes.

Our team at Integrity Realty has over 15 years of experience with second homeowners and a love & respect for our South Dakota land. Call me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!

Invest in a Black Hills Vacation Home

As the housing market is heating up, you may be considering buying a Black Hills home that can be used for vacations, rental income, investment, or as an eventual retirement residence. If it’s financially viable, the purchase of a second home can be a great investment opportunity.

Current tax laws offer several tax breaks that can help make owning a second home more affordable. Different tax rules apply depending on how you’ll be using the property so be sure to check with a tax specialist for details. They can also determine the most favorable ownership strategy.

The following are some basic guidelines for the difference between a rental investment and a second residence home.

Rental Income
Tax rules can be more complicated if you rent out the property. Rules are based on the number of days you rent out the home versus how much you use the home for personal use. There are three categories into which you may fall.

• Renting out the home for 14 days or less. If you rent out your home to another party for 14 nights or less per year, you do not have to report that income to the IRS no matter the rental fee. Since this is still considered a personal residence, you can also deduct mortgage interest and property taxes under the standard second-home rules.
• Using the property for personal use for more than 14 days or 10% of the total days the home is rented. If you use the property for more than 14 days, or more than 10% of rental nights, the property is considered a personal residence and the rental loss cannot be deducted. Family members staying in the home for an extended amount of time cannot be viewed as renters unless you are collecting a fair rental price.
• Renting the property for 15 days or more and using it less than 14 days or 10% of days for personal use. In this situation, this home is considered a true rental property and the activities to the home are viewed as a business. You must report all rental income to the IRS. You can deduct rental expenses including mortgage interest, property taxes, insurance, fees to property managers, utilities and 50% of depreciation. You will want to consult a tax expert for all rules and deductions to ensure full disclosure.

Personal Use
If you are planning to use your second home purely for a vacation home, you can deduct mortgage interest the same way you would for your primary residence. You can also deduct property taxes on this second home as well as interest paid up to $1.1 million of debt secured by both homes. However, all costs associated with utilities, maintenance and insurance are treated the same as they are for your primary residence; that’s to say they cannot be used as write-off’s, with the exception of a home office.

Rapid City, Hill City, Black Hills and surrounding areas…all great places for vacation homes no matter the season. If you are ready to buy a vacation or investment property; or just have questions whether it’s the right choice for you – I’d love to talk with you.

Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!

Sunset Creek ~ A Premier Development Within Hill City

Looking for a new Black Hills home with the small-town appeal of Hill City, backed against Forest Service Land, and an easy commute into the larger area of Rapid City? Sunset Creek Development by Black Hills Tradition is your ideal home.

Developer, Jim Peterson, has ensured custom country living while allowing you to bring in your own custom builder; with approval by the developer. Protective covenants have been put into place by Black Hills Traditions to allow orderly management and protect the integrity of the community.

This custom community features lots of 1/3 of an acre up to 7/10 of an acre that are already set with city water & sewer, underground electric, and communication services contained in a mountain meadow setting.

It is located within the city limits of Hill City where you will find shops, boutiques, restaurants, health services, museums and all the conveniences of everyday living.

The Michelson Trail runs right through the development and with an abundance of green space and walking paths, there is ample opportunity to get out and enjoy the land around you. You can also enjoy Custer State Park, Mt. Rushmore, Crazy Horse Memorial, Pactola Reservoir, and Deerfield Lake, all within an easy drive.

For those looking to live within a green development, Sunset Creek definitely meets those standards. Environmentally friendly practices have been put into place to protect the land within the development such as an innovative drainage system to control runoff and protect the soil and the use of no street lights to protect that gorgeous night sky.

Sunset Creek is set for planned unit zoning with single-family residences, townhomes, duplexes, triplexes and fourplexes. If it’s a vacation home you are looking for, this development also allows for vacation home rentals so that rental income is a possibility when you are not here to enjoy.

You will be impressed with the quality of life found in Sunset Creek Development. If you would like to experience the potential of what Sunset Creek has to offer, contact Jim Peterson today!

Jim can be reached at (605) 391-8373 or email him for more information. Jim or June Johnson can also be reached at the office of Integrity Realty Team at (605) 574-4444. We would love the opportunity to discuss the lots still available within Sunset Creek Development. Email us today and we’ll help you with all your real estate needs.

Don’t Let Odors Scare Off Black Hills Home Buyers

That season is upon us – tourist season where people are looking to buy great vacation homes in the Black Hills! If you have a home you’ll be listing this spring or summer, you may have some residual odors in the house from any renters that had been in there previously.

Odors are one of the many things home buyers notice as they walk into a home, especially a vacation home that may have been vacant off and on. As a seller, you need to identify and remediate those odors before prospective buyers even enter the property.

Unfortunately, it’s not always easy to identify familiar smells that may be problematic, especially if this is your main home.

Here are some tips to wipe out two common offenders before listing.

Remove Traces of Pet Odor
This is a common source of an offensive odor that is difficult to remove. If it’s from other visitors who have stayed at the house in the past, the pet will obviously be removed leaving you free to take on the task of getting rid of the smell. If you are the main occupier of the home, you may want to board your pet elsewhere for awhile until the home sells.

Cat urine, among the worst of all bad smells, can seep into carpet fibers, carpet padding and wood flooring. It can also be embedded in the furniture cushions, curtains and pillows. If budget allows, it may be of interest to remove the carpet and pad, seal the floor and install new carpet and padding.

A good, deep cleaning of the carpet and furniture by a professional carpet cleaner may remedy the situation based on the severity. Just keep in mind that any humidity will raise the odor from the padding and floor beneath.

Wiping Out Smoke
Cigarette smoke can cling to furnishings, curtains and other window coverings and even work its way inside the walls of your home. There are some good topically applied solutions to help alleviate the stench. However, more effective methods include an ozone generator, hydroxyl generator or air scrubber. All of these have been found to work well in absorbing the odor. When all else fails, replacing carpet and other fabric items after a good cleaning by a professional may be well worth the investment.

Recruit a Virgin Sniffer
One of the best ways to find out whether your home smells decent is to ask someone who doesn’t live there or visit often. A friend, a neighbor or even the agent selling your home are all good choices. Not everyone will be honest, even if they’re willing to offer to be helpful, so recruiting more than one may be useful.

I am a local expert in the Black Hills region and can help you sell your vacation home. Call me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience in selling your Black Hills Vacation Home. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!

Cheap Curb Appeal for Your Black Hills Home

They say first impressions are everything and this holds true when selling your Black Hills home as well. However, if you don’t have the budget or a lot of time, we have some great cheap tips for you to really spruce up the curb appeal of your home.

1. Add mulch: layer of mulch is the cheapest way to improve the look of your yard. The darker color the better. Some cities and counties recycle yard waste into free mulch, so check with the agencies in your area.
2. Focus on your front door: Making sure your walk way is accessible, your locks and doorknobs are updated and working correctly, can help make a good first impression. Also check your doorbell, light fixtures, kick plates and clear away cobwebs.
3. Don’t forget your fence: Check your fence for fading and damage. This could be one of the biggest structures of your home. Use a semi-transparent stain on the fence as well as other features in your yard to tie the look together.
4. Use some elbow grease: Stand at the front of your property and look at the house from a buyer’s point of view. Oil spots, dirt or mold may be something you are used to seeing but a good cleaning on the outside will give a fresh appeal.
5. Fill empty places in the yard: Buy some annuals and fill in flower beds and planters with seasonal fresh flowers and plants.
6. Use cool colors: Plants in shades of blue, white, pink and purples have a more soothing effect and make your home appear cooler in the summer.
7. Trim and mow: A well maintained lawn and flower beds give the appearance that the homeowner cares about the home and takes the time to take care of it.
8. Lighting: Use some outdoor lights for your pathways and highlight flower beds for those who are driving by at night.

“Keep it simple” is a good rule of thumb. People are busy these days and a lot of home buyer’s don’t have time to take care of what is considered high maintenance flower beds and landscaping. Keep it simple for yourself as well and try these simple, inexpensive tips that could make your home stand out.

We are local experts in the Black Hills region and can help you buy your first Black Hills home, Call us at (605) 574-4444 or email me to discuss how we can help you with all your real estate needs. Our expertise in the Black Hills or Rapid City markets will ensure you a stress free experience selling your Black Hills Home. Our office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – ours are always open for your convenience!

Saving to Buy Your First Black Hills Home

Have you made up your mind that this is the year to buy your first Black Hills home? Now that the holidays are over, it’s a great time to buckle down and save for a down payment. As the housing market recovers and you continue to juggle other living expenses like rent, car payments and even credit card debt, it can seem like a daunting task.

Tightening up your pocket book and following these tips can help you achieve your goals of a new Black Hills home.

Open a dedicated savings account. Keeping your “down payment saving account” separate from your other accounts can help to keep track of your progress and becomes less tempted to access for those spontaneous purchases. Setting up an automatic deposit with a set amount each paycheck, or month, can help make it easier. There’s something to that old adage, “out of sight, out of mind.”

As your savings grows, you might want to transfer the funds into a money market savings or a certificate of deposit (CD). These types of accounts enable you to earn a better interest rate, further adding to the home fund. Be careful to be aware of your timeframe so that you do not enter unknowingly into an account that may penalize you for early withdrawals.

Investigate all your loan options. Most conventional mortgages require a down payment of 20% of the purchase price. However, there are some FHA loans requiring a lower down payment and the government backs these loans, which include most closing costs and fees. Because the FHA insures the mortgage, lenders are often willing to adjust terms to make loan qualifications possible. If you have a history of credit problems such as a bankruptcy or foreclosure, an FHA loan may be worth looking into. Your Realtor® can help you look at all your options.

Tighten up your monthly budget. The first step is to write down everything you spend in a month; everything! Those coffee runs, bills, groceries, dining out, etc. Then look to see where you can trim and save. Keep in mind that the payoff of a new Black Hills home is well worth cutting back non-essential expenses like dining out, concerts, and yes, even that daily cup of joe from your favorite coffee shop!

Try to negotiate lower rates on things like car insurance or phone plans and you may even contemplate moving into a smaller place that charges less rent if you can swing it. Take a look at your debt load and consider consolidating credit card debt to one card that charges lower interest.

Look to borrow from your retirement. While it’s not encouraged to take money out of retirement funds, if you are a first-time homebuyer, you are allowed to withdraw up to $10,000 from individual retirement accounts (IRA) without penalty. If you have a 401(k) plan, you may be able to borrow up to half of your vested balance, up to $50,000, or some plans allow for a hardship distribution. Please see your investment professional to determine if this is the best course of action for you and regulations on repayment with interest.

Improve your credit score. While saving for your down payment, be conscience about improving your credit score. A stronger credit score will help you secure a better interest rate when the time comes to get that pre-approval and start looking for your new home.

I am a local expert in the Black Hills region and can help you buy your first Black Hills home. Call me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience in selling your Black Hills Home. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!

Enjoy the Black Hills Any Time of Year – February is No Exception

You may think that the Black Hills region is just for summer fun but that couldn’t be farther from the truth. Locals who live here year-around know that there is something for everyone no matter the season.  If you are thinking of investing in a Black Hills vacation home, now is a great time to buy! Rest assured, you will have plenty of reasons to visit each season!

February has some great events in Rapid City and Hill City that you won’t want to miss.

Black Hills Stock Show & Rodeo
The Black Hills Stock Show & Rodeo ® is the second largest event in the state of South Dakota following the Sturgis Motorcycle Rally. It’s a 10-day event ending February 9, 2014 and is anticipated to host 331,000 people.

This PRCA rodeo has been nominated 15 times as PRCA’s “Large Indoor Rodeo of the Year”, winning this award twice! It promises a good time for the whole family!

The stock show features over 96 different agriculture oriented events such as the Ranch Rodeo, Bronc Match, and Sheep Dog Trials. There will also be nearly 300 vendors during the tradeshow selling everything from fine arts to front-loaders. Kids can enjoy some one-on-one time with a variety of animals in the Barnyard Petting Zoo. You can also round off the night with a concert featuring Chancey Williams and the Younger Brother with Dirty Word.

The Black Hills Stock Show & Rodeo is held at the James Kjerstad Event Center on the Central States Fairgrounds & Rushmore Plaza Civic Center in Rapid City. Check out their Event Calendar to plan a full day at this great event!

Main Street Square Ice Skating
There’s something about ice-skating in an outdoor rink and enjoying a cup of hot cocoa that brings you back to a simpler time. Whether it’s family time, bringing a date, or purely just an outing with friends, you will be sure to find fun at the Main Street Square Rink.

The rink is located at Main Street Square – 512 Main Street – Rapid City and is open till February 22, 2014. Hours may vary so be sure to check out their website for hours and rates.

Black Hills Photography Club Exhibit
If the arts and activities inside are more your speed, check out the Black Hills Photography Club Exhibit. It supports the photographic arts throughout the Black Hills region. The exhibit showcases over 100 artists with skill levels ranging from novice through Master Photographer.

The exhibit runs through February 24, 2014 in the event room at the Prairie Berry Winery in Hill City.  Make it a date and stay for dinner or appetizers from Prairie Berry’s Kitchen while you enjoy some art. Pieces are available for purchase as well.

Whether you are looking for a year-around home, land, investment or vacation home, our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!

Get Smart Before Listing Your Black Hills Home

If you’ve decided to sell your Black Hills home, there are some ways you can start off on the right foot to work as a team with your Realtor® to help position your home the best way possible. Sure, your agent is the expert in marketing your home but giving them some pertinent information up front can go a long way in getting your home listed and sold quickly.

Know what your home is worth. Integrity Realty will offer a Comparative Market Analysis (CMA) of what your Black Hills home is worth. However, it’s smart to do a little digging yourself as to what your neighbor’s are selling for. Of course you have an emotional connection to your home, and sometimes these emotions can play a part in what you feel your listing price should be instead of going by the facts.

Know your bottom line before listing. It’s helpful for your Realtor® to know your bottom line in selling price. If you would rather keep that information to yourself, it’s still easy enough for you to get the payoff amount from your current mortgage lender so that you can determine whether to accept an offer or present a counter-offer.

Educate your Realtor® on updates and renovations. Many times the improvements and upgrades you have made while living in the home can be used to determine the listing price. In some cases, renovations can be worth more than what you initially invested, or at the very least can be used to highlight the home and make it stand out among the comparables.

Take care of any liens or disputes before listing your Black Hills home. Although any good real estate agent will ask, it’s important to do some research and find out if, in fact, there are any tax issues or any types of liens that may have been put on the house due to disputes or discrepancies with contractors or creditors. Your Realtor® may be able to help clear them up and resolve any issues that would come up in closing.

Make a flexible schedule for showings. Listing your home means showing your home to potential buyers. It’s important to have your home show-ready at all times and be as flexible as possible with your schedule. Take all occupants in your house into consideration; including your pets. Keeping those pets at a friend’s, neighbors, or doggy day-care may be worth it so that your home is available during the day while you’re at work. Pre-plan meals and have a “necessity bag” available just in case someone wants to see your home in the evening hours and you need to leave in a hurry.

At Integrity Realty, we determine the value of Black Hills area homes daily. I’d love to talk with you about giving you a Comparative Market Analysis of your home to determine the best course of action for you. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!