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Is your home haunted??? Do you have to disclose that to potential buyers? Thom has that answer for you in today’s radio show! He is also talking about inspection reports and negotiating for repairs when you buy a home.

 
 

Segment 1

 

Dave Burnett:                    This is the Idaho Real Estate Buzz, here is Thom Dallman, the co-owner and associate broker at Core Group at eXp Realty. Another week as we're here in the Treasure Valley, the leaves have changed.

Thom Dallman:                  Yep.

Dave Burnett:                    The leaves are falling.

Thom Dallman:                  The season is here. The season is upon us.

Dave Burnett:                    It is Halloween season, and- like to consider this the slippery slope to the Super Bowl.

Thom Dallman:                  Exactly.

Dave Burnett:                    Hit Halloween, then suddenly it's Thanksgiving, oh, my goodness, Christmas, New Years, Super Bowl, and then we hit the doldrums.

Thom Dallman:                  It really goes like that, doesn't it?

Dave Burnett:                    It really does.

Thom Dallman:                  Although, I have to say, this whole year has been like that, with just all the changes and everything that's been happening in the marketplace, it's been a crazy year, it's gone by very fast.

Dave Burnett:                    It has been a busy year for the real estate market, I think when we hit the year end show, and we talk about the past year, just the inventory, or lack thereof, how quickly deals are made on houses and the bidding that's gone on, it's been a crazy year.

Thom Dallman:                  It's been crazy, yeah, interest rates going up a little bit throughout the year, and ...

Dave Burnett:                    You're telling me before we started the show today that inventory has increased a little bit.

Thom Dallman:                  It has, yeah. Perfect example, at Core Group we have three new listings that I want to talk about today, one coming soon and two that are active this weekend. So, inventory's starting to pick up a little bit.

Dave Burnett:                    I'd run, is the sky falling?

Thom Dallman:                  No, that's why a lot of people are like, oh, my gosh, inventory is increasing it's ... That's what happened in 2008 and caused the crash, but the thing to keep in mind is that we are at all-time lows right now in inventory, we're at 1.6 is what September came out with.

Dave Burnett:                    What does that mean?

Thom Dallman:                  1.6 month's supply, that means if we had no more listings, no more new construction, we'd run out of homes with our current demand in 1.6 months.

Dave Burnett:                    Wow, a month and a half.

Thom Dallman:                  So, a month and a half, yeah.

Dave Burnett:                    Yeah.

Thom Dallman:                  So, that's creeping up a little bit.

Dave Burnett:                    It had been lower?

Thom Dallman:                  It had been lower, yeah. During the summer we were down to 1.1, 1.2 month's supply in certain areas, so we were almost just there at a month's supply. So ...

Dave Burnett:                    So if you hear somebody rambling off that, "Oh my goodness, there's a glut of homes." There's not a glut of homes.

Thom Dallman:                  There's not a glut of homes. We're still having hard time for certain buyers finding them homes, because we still are at all time low, and still getting multiple offers on homes that are priced correctly and so forth. So, I'm sorry, what was the question?

Dave Burnett:                    Is there a price range that's tougher than others?

Thom Dallman:                  I would say anything below 250 definitely is difficult, right now the average home price is around that 300 price point, so it's shifting a little bit to finding harder ... It's getting harder to find things up in that 275. So as we get the interest rates going and people can afford less and stuff like that. That shifting will happen with the price points as well, but anything below 275 gets tricky sometimes, but we're starting to get more stuff on in those lower price ranges that's helping the market for those first time home buyers, those investors and stuff like that, so. It's not a sign of times crashing.

                                                In 2008 when the major crash happened, 2007, 2008, we were at nine month’s supply. We were at, if nobody listed another home, we could go nine months without running out of supply for people.

Dave Burnett:                    That's not good.

Thom Dallman:                  That's not good at all. That was a definitely a buyer's market where sellers had no control, buyers could do whatever they wanted and sellers just had to go along if they wanted to sell their home, so.

Dave Burnett:                    If you got an offer, you took it.

Thom Dallman:                  Yeah, exactly. So that's where the big difference between now and what happened in 2007, 2008 is that our inventory is still super low. A healthy market is usually between that four and six percent of month's supply. So we're still quite a ways from being a healthy market, but we are shifting slightly towards the healthy markets with the increase of inventory and stuff like that. This is what we wanna see, we wanna see it shift back towards that four, six months. So we have a balanced market and it doesn't favor one side or the other. Right now sellers do have-

Dave Burnett:                    Have the edge.

Thom Dallman:                  -have the edge right now because of the lack of inventory. So.

Dave Burnett:                    Well, let's jump into it, let's find out, what are the new listings at Core Group?

Thom Dallman:                  Sure. The first listing that I wanted to chat about was a house over in Razzberry crossing, in Meridian, that's right off of the intersection of Locust Grove and Ustick, great little area there. The house is 4374 North Heritage view in Meridian. It's a four bedroom, two and a half bath, two story house, it has a two car garage, and it's on a point one three acre of a lot. So it's a smaller lot, but it backs up to a field right now, so you don't have to worry about back neighbors, just shed, of course eventually-

Dave Burnett:                    That will change

Thom Dallman:                  -That'll change just like everything else does, but it does have a nice view of the mountains 'cause it's east facing, so you get to see views of Bogus basin and whatnot from the back. They just recently went through and did some updates on it. Recently in 2017, they re-insulated the attic, so it's got all new insulation. They put in new carpets throughout the house in 2017 as well as, gosh, they had the furnace service, they had air conditioner cleaned out and serviced and they installed new backsplash in the kitchen counters and backsplashes last year, as well as in 2014 they put in some laminate flooring, so, it's a really nice house, really worth checking out, lots of space. It's one of those homes where you walk through it and like, "Wow, I can do so much with this space."

Dave Burnett:                    - room.

Thom Dallman:                  When you walk in the entry, it's a big open floor plan. So, living room, dining room into the kitchen and stuff. So it's 2100 square feet, so, a large house and we are on the market at $300,000 even for this house, so.

Dave Burnett:                    Okay. So it's in a good price point range.

Thom Dallman:                  Yeah, that's right around that, our medium price point right now is ... In September it was $319,000 , so, right around that medium price point where everybody's looking and everything. So.

Dave Burnett:                    In North Meridian that's a nice desirable area.

Thom Dallman:                  Exactly, exactly. So, check it out, once again that address is 4374 North, Heritage view. Go to CoreGroupRealty.com. Look at featured listings and it should be there. The next house and I wanna talk about is at the end of Curtis in Boise. This one is actually listed at $249,000, so really great price point once again, hard to find anything under 250 right now, so.

Dave Burnett:                    You said it's at the end of Curtis?

Thom Dallman:                  2105 South Curtis road. So it's a four bedroom, one and a half bath, 1500 square feet. They've just went through and remodeled a whole bunch of stuff in it and updated a whole bunch of stuff, so, including they put in, basically a guest quarters with their own private entrance that leads into their beautiful backyard, super convenient to everything obviously, 'cause it's on Curtis and if I'm not mistaken just past overland. So, you can get over there to spectrums to movie theaters and all that stuff that's over there, up there at the a Cole and Overland intersection, so, beautiful home, it shows really well, the school bus parks just down the street if you have children or if you just want to jump down to the greenbelt, it's not too far away from that. So, four bedroom, one half bath, 1500 square feet for $250,000 on the Boise bench. Great option.

Dave Burnett:                    I mean, a four bedroom house for that price, that's a good deal.

Thom Dallman:                  Yeah. That's a really good deal, and especially in Boise itself, on the to find something at that price point is pretty good, and to have the convenience of it being so close to everything and newly remodeled big old backyard. It's on point two two of an acre, so almost a quarter acre, so nice big lot. Definitely

Dave Burnett:                    A little bit of elbow room.

Thom Dallman:                  Yeah, very much so. So 2105, South Curtis road. The last one that I wanted to talk about is actually coming soon, it will go live, so nobody can really look at it until next week, but it is worth talking about if anybody's looking, because it's a four bed, two and a half bath in Boise as well, Southwest Meridian, it's actually 8010, South Diego Way. It's 2,397 square feet, so almost 2,400 square feet also on point two two of an acre, so a quarter acre, a big Old House. I'm trying to recall what time I was told on this, so it's got a bonus room on it, the fourth bedroom is technically the bonus room, it can be used as a bedroom or it can be used as a bonus room, it does have a closet, it has its own bathroom and everything so.

Dave Burnett:                    Okay, right now teenagers got dibs on that.

Thom Dallman:                  Yeah, right, exactly. So funny because I actually showed a house this week to some clients that have a teenager and one of the houses that they're looking to buy has a bonus room and yep, teenage daughter was like, "This is my room, we're not gonna use this as a bonus room." Anyways, so, it's coming on the market at $335,000. They did recently install full patio screens on the back of the house, on the covered patio to make it more of an enclosed back patio.

                                                So you've got great entertaining space, got RV parking with the storage shed, three car garage, there's a split bedroom design too, so, you've got your master on one side and the other bedrooms on the other. We always talk about that, how that's great for people to have their privacy in their own room and stuff. So, let's see, what else? The bonus room isn't upstairs, so it's all the master and everything's on the main level, then the bonus room is on the upper level. Like I said 8010 South Diego way, Boise, Idaho, it's in southwest over there at the Carmichael subdivision off of Cloverdale and Columbia road. So it's South Boise kind of-

Dave Burnett:                    But not far from the freeway.

Thom Dallman:                  Not far from the freeway. Easy access to jump onto the freeway and get wherever you need to go, so.

Dave Burnett:                    So one house on South Curtis, one in South Boise and the other one in North Meridian.

Thom Dallman:                  Correct, Correct. And the 8010, Diego Way, is a coming soon, so it won't be available until the end of next week, but you can ask information about it, we can't show it until the end of the week, but-

Dave Burnett:                    Let me ask you this question, if somebody is interested, if they give Core Group a call, 208-933-7777. Let one of your agents know as soon as this becomes available, call.

Thom Dallman:                  Yeah, we could probably pre-schedule for you, so that the minute that it hits the market we can get you in there and check it out. So, definitely give us a call and ask the information about it and we'll get you scheduled in for when it goes live and you can get in there and check it out.

Dave Burnett:                    That'll be great.

Thom Dallman:                  Some great options out there. I love that we're in that medium price point that we need to be in, the market needs more of those homes, so, I'm glad to see more of those coming on and become available for people in that price point.

Dave Burnett:                    But again, at that price point, I will warn I can do it 'cause I'm not really part of core. These won't last long.

Thom Dallman:                  No.

Dave Burnett:                    You will go faster, don't sit around and think about it, get on the phone Call 208-933-7777, That's the phone number for Core Group at eXp Realty, or you can go to their website, CoreGroupRealty.com and check it out there and you can make contact there as well if you wanna do that.

                                                This is the Idaho real estate buzz being brought to you by Eagle home mortgage, Will talk to Ron Wieczorek in just a few minutes, find out what he has to say, actually I think he's gonna talk about the FED and how they decided to raise rates a little bit about that. We'll talk to Ron in just a few minutes say, one of the sponsors along with the folks at Core Group at eXp Realty, call today, 208-933-7777, find out why they say you get more, with Core.

 

Segment 2

 

Dave Burnett:                    Is the Idaho Real Estate Buzz. He is Thom Dallman, the Associate Broker of Core Group at eXp Realty and also one of the co-owners at Core Group at eXp Realty. Well we get a chance every week to talk to Ron Wieczorek with the Eagle Home Mortgage Equal Opportunity Lender.

Thom Dallman:                  Get some of the best information about financing out there from him.

Dave Burnett:                    During the break we found out that Ron does not have a life.

Ron Wieczorek:                I do not.

Thom Dallman:                  He does not.

Dave Burnett:                    You read the minutes of the Federal Trade Association or federal trade groups?

Ron Wieczorek:                Am I alone on that?

Thom Dallman:                  Crickets.

Dave Burnett:                    I didn't know that notes were available.

Ron Wieczorek:                Yes they are. And I maybe skim if that makes me sound cooler but I like to get the feel of what of what's going on after. Especially now. There was five-six straight years where there was no Fed activity and/or they were going down so there was no cause to really read and/or dig into that commentary. But now as we see mortgage rates rise and as we see the economy is doing stronger and posting numbers all of that is magnified. That's why I look into that more than I did before. And one of the most common questions I get when the Fed meets or when they're about to meet is "Oh I heard they're going to raise the rates, I better lock in before they do that."

Dave Burnett:                    Yeah and we heard them this last time when they were raised and we heard it for two months ahead of time that the next meeting they're probably gonna raise the rates.

Ron Wieczorek:                Right. And we anticipated it. We all knew that they were anticipating raising a quarter the time before, a quarter this time. And it's much like ... Like compared to the stock market when you know that numbers are coming out for a company that you're looking at and you're expecting the gains to be a certain amount and they hit those gains the stock does nothing because it was already baked into that. And that's kind of how the rates are, mortgage rates are when the Fed meets. If we anticipate a quarter that day they say yes we approve that quarter there is almost no activity in the market. What we do see is and this hasn't been recent because it's been pretty consistent, if we're anticipating a quarter increase and nothing happens, no increase, they back off a little bit and say we're not going to increase that overnight lending rate then you'll see some activity where rates go down because they feel that the committee is backing off that and say maybe the economy is slowing down, maybe there's a cause for the rates to go down.

                                                Other side of that coin. If we're anticipating rates to go up a quarter and they go up a half then all heck breaks loose on the market because they're like "Oh my gosh they're tightening up more than we thought they would." And that's when it hits. So when it's a surprise is when things really change.

                                                And then the second time when things change is when some of these minutes come out and that's why I pay close attention to that at least to some of the higher level and bulking some the comments together because we know they raised it a quarter, we know why they raised a quarter is because they don't want the economy to overheat. They want to keep pace with inflation. They want to keep that around that barometer of 2 percent. So we know that already or the people close to the situation know that already. But we want to dig into some of the comments and when the market reads because the market reads, Wall Street reads these comments when they come out and if they see that maybe some of the Fed members want to increase it more then some of that activity can start again. And that's really what happened or what is happening.

Dave Burnett:                    We do know the stock market has really come down and made a big correction going downward the past couple of weeks.

Ron Wieczorek:                Yeah and I'll get into that. I'm glad you brought that up because a majority when they're in the room, you read the notes and a majority appear to favor an eventual and temporary move above the level they deem neutral for the economy in the long run. What we deem neutral is 3 percent is what they kind of point to as being a neutral area when they have the overnight lending rate and we're two and a quarter now. So that was one hint and then there was a few that expected the policy would need to become even more restrictive for a time and then a number judge it to be just a temporary raise for the federal funds rate. So that few is what a lot of people reacted on that there is that groundswell of members in the committee that say this isn't enough, we're not doing enough.

Dave Burnett:                    We need to raise it more.

Ron Wieczorek:                We need to raise it more. And that might be coming. So when you read that that goes against what we're anticipating, it kind of knocks us off our thought process and puts us in a position where like what is next, like how much-

Thom Dallman:                  How much are they going to raise it.

Ron Wieczorek:                How much more restrictive, are we reading into it too much. Because there was a couple members that argued against adopting a restrictive policy in the absence of clear signs of overheating economy and rising inflation. And that's what we want to hear. That's exact verbiage we want to hear so that maybe offsets that a little but we still have that concern about the few to many that are arguing against a more restrictive policy.

Dave Burnett:                    And the reason they want be more restrictive is they feel the economy is too hot and they want to slow the economy down. That's the purpose of it?

Ron Wieczorek:                Yeah, the Fed chair, Jeremy Powell's his name and he said it's a balancing act right now. And he tried to maybe temper expectations a little bit so it wasn't so reactive. He said "There's a balancing act we're doing right now and we don't see overheating yet but we don't want to raise it a quarter when it maybe should have been a half and then have it overheat." And that's September 26 is when the meeting happened and October 10th is when our president spoke Donald Trump and that's what you talked about is the market movement. The Dow dropped 800 points that day and he took the podium and he said I think the Fed is making a mistake. They're so tight. I think the Fed has gone crazy. Well that's true Donald Trump style. All right.

                                                So he obviously is against a lot of these movements. And I'm somewhere in between on it. I trust the Fed. I trust Jeremy Powell. I mean he had a hand in picking members of the Fed. So at some point you have to trust what they're doing is right. I'm not scared by any of this talk because it does say our economy is doing better. It says that we're trying to squash inflation or keep inflation at a certain point. So all of this to me is just kind of talk in the media. There some fat ex Fed chairs that got scared when Donald Trump talked and they warned him. They said this might backfire on you. They said that if you attack the Fed publicly and say that you don't agree with the raising rates that they may raise the rates in future times even if there doesn't need it because they want to appear like they are politically not involved or politically neutral. I don't believe that. I think that though cooler heads will prevail there and I think they are professional. And I think we'll do what's right for the economy and to squash some of that overheating.

                                                And I don't think we're there yet and Donald Trump has said that as well. He says we're not overheating yet. We're just getting our sea legs with this economy. But it is a balancing act and that's kind of what we always look at as is what in these minutes is going to give us an insight to what's going to happen in the future. How much is that rate going to go up, at what pace is it going to go up so much like the stock market like you mentioned Dave that it went down 800 points or went down seismic it's a lot of it is economically driven and some of it is speculation a big part of it is speculation and that's what why when I read these notes in times where we're in transition or in times where it's getting hot pay more attention to those things.

Thom Dallman:                  And I think the interesting part of that is that when you said it's speculation and it's kind of that's what we when people ask us how is the market doing. What's the market going to look like next year. It's all speculation. It's all kind of all this information that you gather to kind of be able to speculate and maybe make a good prediction on what's going to happen. But at the end of the day you still never know what's going to happen.

Ron Wieczorek:                And I always laugh I would say something when people pin me to the wall and say Ron I want them to lock in or not lock in him. What should I do. What's the market going to do. I don't know. Like I know I do a lot of research. I do a lot of reading.

Dave Burnett:                    Obviously.

Ron Wieczorek:                And I can say what I think is going to happen. But at the end of the day something can happen tomorrow. I mean when September 11th happened every piece of research that happened September 10th was out the window because the market that reacted the way the market reacts to some kind of event. And I'm not saying we're gonna have an event like that but events happen on a daily basis that we don't anticipate that could throw all of our research, all of our reading, all of our speculation out the window.

Dave Burnett:                    And we do know for sure that what has happened with the rates has caused a little bit of a slowdown because it does cost more to buy a house today than it did two months ago.

Ron Wieczorek:                Yeah if your budget was $250,000 for a mortgage four months ago and you're still hanging onto that preapproval and you're saying I'm approved for $250,000 you may want to check that again because the rates of one up the house prices of one up. So you're now sitting on something that maybe you thought you're not in the area that you thought you were maybe you're not the position you thought you were. So it's something to keep your finger on the pulse especially if you're in the home buying market or if you're on the fence or if your rent's going up and you're sick of that then all of a sudden you come with this letter and you're like wait a minute, it's $220,000 now.

Dave Burnett:                    But the bottom line again is interest rates really are very low in comparison to where they've been over the course of history. I mean they're not super low but they're still real reasonable.

Ron Wieczorek:                When I started the business in 2001 we had 8 percent on a ratio. That's what I was selling when my boss came to me who'd been in the business 20 years previous to that. So you're a lucky kid. You're selling a percent. And then that was right before September 11th maybe six eight months before September 11 and then the rates almost overnight dropped daily. And then he said I don't know what kind of silver spoon you have but now you're super lucky you get to sell these rates, refinances and land purchases and everything else. But you're right. Historically anything under seven is just is still really really low

Dave Burnett:                    Which you can get. Homes are out there. Loans are out there and something you really should consider putting together as we head into this holiday season. So somebody started working with you right now Ron if they found a house through Core and they want to get it financed  can they still be in by Christmas.

Ron Wieczorek:                Oh yeah we're three weeks away from Thanksgiving, what's today?

Dave Burnett:                    Halloween is just coming up this week. So you got a month till Thanksgiving. So we are honestly looking at if you were to make a deal today you probably could be in the house by Thanksgiving.

Ron Wieczorek:                Yeah you could be watching football in your new house on Thanksgiving Day and watching the Lions probably lose again.

Dave Burnett:                    The lions might win this year. That's a whole different world. So keep that in mind. And of course Ron how does somebody get hold of you over at Eagle Home Mortgage.

Ron Wieczorek:                The best way to reach me and I know I've just carved out some Lions fans from calling me.

Dave Burnett:                    They may want to call you now.

Ron Wieczorek:                But my cell phone is 208-869-9154.

Dave Burnett:                    All right Ron Wieczorek with Eagle Home Mortgage, one of the sponsors of the Idaho Real Estate Buzz along with the folks at Core Group at eXp Realty. Give them a call, 208-933-7777. Find out why they say you get more with Core.

 

 

 

Segment 3

 

Dave Burnett:                    This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, associate broker of Core Group at eXp Realty.

                                                One of the terms that you'll hear if you're buying a home is inspection.

Thom Dallman:                  Inspection process.

Dave Burnett:                    Yeah. And it's funny, I have a friend who just recently sold their home, and they had that inspection process done, and he got punch list of 97 things to do.

Thom Dallman:                  Oh yeah.

Dave Burnett:                    But the good news is-

Thom Dallman:                  Wow, 97.

Dave Burnett:                    Yeah. Most of them were little tiny things.

Thom Dallman:                  Yeah.

Dave Burnett:                    There's nicks in the paint here, there's some caulking needed there. It wasn't like a total big, "You've got to replace all this." It was little tiny things.

Thom Dallman:                  Interesting. As a real estate agent that works with buyers a lot, I always inform my buyers that the inspection is not a cosmetic inspection. It's for safety and soundness issues. It's for issues that will cause the house to have damage over time if they're not fixed, or-

Dave Burnett:                    Like a roof over-

Thom Dallman:                  Yeah, like a roof or exposed wood on the exterior of the house, if you have peeling paint and stuff like that, foundation issues, so to have a list of 97 items that are nicks and scratches in the walls? That's-

Dave Burnett:                    That's a pretty nit-picky inspection report.

Thom Dallman:                  That's a pretty nit-picky inspection report. I mean, kudos to the inspector for putting it all down.

Dave Burnett:                    Yeah.

Thom Dallman:                  I think that inspector has that right, but-

Dave Burnett:                    His wife called him with her hair all on fire going, "Oh my god, we got 97 things." He looked at it, and he said ... He got most of them done in one afternoon.

Thom Dallman:                  Oh yeah, oh yeah.

Dave Burnett:                    He said there's a few things that they had to do, a little bit of replacement of tarp. What do you call it? Black Visqueen under the house.

Thom Dallman:                  Oh yeah, the vapor barrier. That seems to be a common one because as people get down into their crawlspaces and move around, they move that vapor barrier around and stuff.

Dave Burnett:                    Yeah. Let's talk about it though.

Thom Dallman:                  Yeah.

Dave Burnett:                    The inspection list, which for you, if you're selling a house, you dread it.

Thom Dallman:                  That's super important. Yeah, the sellers dread it. The buyers-

Dave Burnett:                    Need it.

Thom Dallman:                  Need it, yeah. We always tell people that they need it because it's how you know you're getting a good house. It's how you know things are going to work. You really want to make sure that you're getting an inspector that is certified, knows his stuff, that's been around for a while.

                                                Some of the most common questions that you should ask an inspector is: How experienced are you? How long have you been in there? Do you maintain your membership with any professional home inspection organizations? Do you do continuing education? What do you do to better yourself in the industry? And things like that to really make sure that you're finding that inspector that's going to be good for you, and a good fit, and that's going to work hard and will be knowledgeable about the things in the house, because this is an important aspect of the whole process.

Dave Burnett:                    Okay. Let's do a little role playing here.

Thom Dallman:                  Uh oh.

Dave Burnett:                    I'm buying a house, talking to my agent with Core Group at eXp Realty.

Thom Dallman:                  Okay.

Dave Burnett:                    And you then say ... Well, let's say I'm selling a house.

Thom Dallman:                  Okay.

Dave Burnett:                    Okay. Put my house up for sale. We decide, yeah, it's probably worth this amount, that amount, so at that point then you say we need to get an inspection done of the house?

Thom Dallman:                  You know, sometimes, depending on the house itself, I will suggest that they do an inspection on their own. The sellers do one, pre-inspection is what we call it, because especially for older houses, it will identify any issues beforehand that they may want to go fix so that-

Dave Burnett:                    And get it solved.

Thom Dallman:                  Yeah, so that when a buyer comes through, that won't be a surprise down the road. That's typically something that we'll recommend for older homes just because older homes, as they've settled, as systems have worn out and whatnot, it's a good idea to that pre-inspection.

Dave Burnett:                    Okay.

Thom Dallman:                  Saves you time and money and the worry that something's going to happen during the inspection process with a buyer. Because there's nothing worse than having a buyer get under contract, it takes four or five days to negotiate and get to that point, and then all of a sudden have them a week after that have their inspector go through and find all these issues-

Dave Burnett:                    Yeah, "Oh, look. We need to replace all of that."

Thom Dallman:                  Because that's the buyer's right, to terminate the contract at that point, so now you've gone two, three weeks with it off the market if they do find something and decide they're just not going to buy the house and they just decided to walk away.

Dave Burnett:                    So, if I'm selling a house, you're going to recommend it. If it's an older home, or as an agent you look at it and go, okay, we've got some issues here, just to get it done.

Thom Dallman:                  Yeah. That's the importance of us walking through the house prior to getting it listed so that we can kind of see. There's agents out in the industry that say, "Oh, no. I'll just list the home. I don't need to see the home. I know what the house is worth."

Dave Burnett:                    Yeah.

Thom Dallman:                  But I'm like ...

Dave Burnett:                    You don't know.

Thom Dallman:                  You don't know 100% unless you go walk through the house. You can get a good ballpark range, but unless you go see the house, you don't know what kind of-

Dave Burnett:                    Suddenly the sheet rock is falling off the walls and you didn't know it.

Thom Dallman:                  Exactly.

Dave Burnett:                    That's not good.

Thom Dallman:                  Exactly.

Dave Burnett:                    If you're selling, that's one case. If I'm buying, you always recommend it?

Thom Dallman:                  Always. Always recommend it. And I've had clients in the past that have said, "No, I don't really want it," or "I've got a family member who was in construction, so-"

Dave Burnett:                    Uncle Bill knows.

Thom Dallman:                  "They're going to go through and do that for me."

                                                The way that things change and the codes change with the county and the state, inspectors are always up on all that stuff, so they know. This is this their livelihood. This is what they do, day in and day out, is walk through homes, look at things. They know how to catch that stuff, so that's why I always, always recommend spend the extra money to get that inspector, get that professional licensed inspector who's insured, through the house to identify those safety and soundness issues with the house so that you're protecting yourself.

Dave Burnett:                    Do you have a person with Core that you recommend?

Thom Dallman:                  We've got a couple, actually. Yeah. We've got a couple, Idaho Inspections and AAD Inspections, two companies that we've done business with. Stan Audette has been on the radio many times with us, as well as Derek Jones from Idahome Inspections. Both of them are amazing people. Been partners with them and had them do inspections for me for years now, so people that I highly trust. And that says something. Should say something to a home buyer.

                                                When you're looking for an inspector, you need to have that referral, have that referral list. Don't be afraid to ask the inspector for that referral list and say, "Who have you worked for in the past? Can you give me a couple names and number that I can call and see how it went and stuff?" Ask for those references because word of mouth is important. Getting someone who's actually used them and knows what their process is like.

Dave Burnett:                    So, they go through, they poke, they prod. They look, they crawl under the house, they crawl over the house. They come up with a list of items. Like I said, my friend, he had 97 things on his list, not all major.

Thom Dallman:                  I think that's the longest list I've ever seen.

Dave Burnett:                    Yeah, that's a lot, but it was pretty minute. It was pretty nit-picky.

Thom Dallman:                  Yeah.

Dave Burnett:                    What happens at that point, then? As the homeowner, it's up to me to get them all fixed? Mostly fixed? Do you sit down and say, okay, these are needed, these are not? How does that work?

Thom Dallman:                  Once the inspection's over, I usually will meet my client. This is my process and something I teach to my agents and stuff. When the inspection's happening, I usually recommend that the buyers come at the end of the inspection so that the inspector can walk through and point out the highlights of his report. Usually takes about 24 hours for that report to show up, but in the meantime at least they can get an idea of the condition and what the inspector found.

                                                The report will come in usually that night or the next day, at which point then I'll call my buyer and say, "Let's go through this list. Let's talk about ... Keeping in mind that we're looking for safety and soundness issues, not cosmetic, not things that are minor,  let's focus on the things that are important for you to be safe in your house, to have a sound house, and that will allow your loan to be appraised and to go through.

                                                I usually will sit down and go through it in-depth with my clients and ask them, "What things do you want fixed? What's important to you? Here's the things that I see that you should consider," so it's usually kind of that conversation and going back and forth.

                                                We'll write up what's known as an inspection contingency, which we'll send off and say, "We want these items fixed." We can do other options like credits towards closing costs or reducing the purchase price in lieu of getting things fixed, but mostly we'll do a list of things that need to be fixed, which we'll send over to the seller.

                                                Now, the listing agent, the seller's agent, will take that list and sit down with the seller and say, "Here's the inspection report. Here's the inspection contingency. Here's what they've asked to be fixed. Let's go through this list and see. We have three days to figure out how much it's going to cost, what items you're willing to do. If you're willing to do them all, great. Let's do them. Let's just sign it and send it back. If now, let's counter back and say we're willing to do these, these, and these because that's what you need to get your appraisal or your loan. For whatever reason, we're able to these."

                                                It kind of becomes a little bit of a negotiation-

Dave Burnett:                    Back and forth.

Thom Dallman:                  Back and forth a little bit at that time.

Dave Burnett:                    But it's kind of a given that anything major, if it's a roof or if it's a foundation issue or something, that those probably ... The bank's not going to loan money on it if it's not fixed, correct?

Thom Dallman:                  Potentially. It depends on the type of loan.

Dave Burnett:                    Yeah.

Thom Dallman:                  It depends on the type of loan and what the offer is subject to, but typically any big concerns, if a roof will not be certified for, I believe, it's three years, if the furnace looks like it's going to kick out next week, things like that. Yeah, then typically the appraisers will not allow a loan to go through for those type of homes.

Dave Burnett:                    That's where that becomes a negotiating point.

Thom Dallman:                  Yeah.

Dave Burnett:                    "No, you're going to fix it," "I'll fix it," "No, we'll fix it and split the cost." That kind of a thing?

Thom Dallman:                  Yeah, exactly. Exactly. And the splitting the cost thing is a little bit difficult, too, especially with the loan process. The lenders don't like buyers paying things out of pocket, because remember, especially for those who have a very thin debt-to-income level where it's very-

Dave Burnett:                    You're on the wire already.

Thom Dallman:                  Right on the wire already. If you have to pay out $4,000 towards a new roof as a buyer, that depletes your bank account a little bit and it could go wrong. But yeah, it's definitely something that is going to be discussed and can be negotiated.

Dave Burnett:                    Now, we shouldn't confuse the inspection report with the bank's inspection, should we?

Thom Dallman:                  Nope.

Dave Burnett:                    There's two different things.

Thom Dallman:                  The bank inspection's called an appraisal.

Dave Burnett:                    Okay.

Thom Dallman:                  That's where the bank's going to send someone in to verify the condition of the house to make sure that they're loaning on a house that's safe and sound.

Dave Burnett:                    And that's why we come full circle back to you talking about safe and sound issues.

Thom Dallman:                  Yes, exactly. That's what the appraiser's for, and they are strictly hired by loan officers to make sure that the house is lend-able.

Dave Burnett:                    They don't care about the seller. They don't care about the buyer.

Thom Dallman:                  Nope.

Dave Burnett:                    They care about the property.

Thom Dallman:                  They care about the property and the loan that's going on that property, because there's nothing worse for a bank than lending on a house that's going to fall apart and the homeowner doesn't want to pay their mortgage because the house has fallen apart.

Dave Burnett:                    Yeah. That appraiser's not going to be working for the bank for very long.

Thom Dallman:                  Exactly. Exactly.

Dave Burnett:                    If somebody wants more information, we're running a little long here on the segment.

Thom Dallman:                  Oh, sure.

Dave Burnett:                    If they want more information about inspections, about how that whole process works, or maybe they're looking for an inspector, easiest way to get ahold of you there at Core Group?

Thom Dallman:                  Just give us a call at the 208-933-7777 number, or just go online at CoreGroupRealty.com. Our list of service providers is there up on the bar, so just click that and pull it down and you'll see the home inspectors there. You can give them a call, and ask them your questions, and pick from there.

Dave Burnett:                    Very good. And, of course, if you're looking to buy or sell a home, Core Group at eXp Realty. This is a kind of advice, kind of counsel, kind of talk you're going to get as you go about buying or selling that home so you feel comfortable and know that you're doing the right thing, not being taken advantage of by the buyer or seller, and that you're getting the right thing done.

                                                The Eagle Home Mortgage, one of the sponsors of the Idaho Real Estate Buzz, along with the folks at Core Group at eXp Realty. Call them today, 208-933-7777. Find out why you get more with Core.

 

 

 

Segment 4

 

Dave Burnett:                    This is the Idaho Real Estate Buzz with Thom Dallman, the co-owner and associate broker at Core Group at eXp Realty. Core Group, easy to find on Emerald, right over by the Boise Town Square Mall.

Thom Dallman:                  Just a block and a half down, two blocks, block and a half, something like that. Down west of the Boise Town Square Mall, on the south side of Emerald's. Great location. It's easy to stop in and come visit us. We're open 08:00 to 05:00, Monday through Friday. I'll usually have an agent standing by, ready to chat with you about whatever questions you have about real estate.

Dave Burnett:                    The reason you know it's Core Group is, when you look at the building, it says Core Group right on the front.

Thom Dallman:                  Yup, big old Core Group.

Dave Burnett:                    You can't miss that. Core Group at eXp Realty. You can call them, 208-933-7777. We want to talk about something, and that is, when you're selling house, do you have to disclose everything you know about the house?

Thom Dallman:                  Pretty much everything.

Dave Burnett:                    Okay... I know we're in the week of Halloween.

Thom Dallman:                  This is where this whole conversation came up with, because we started talking about haunted houses.

Dave Burnett:                    Well, let's go ahead and start there.

Thom Dallman:                  All right.

Dave Burnett:                    Because we'll talk about some of the things you do have to disclose, but let's say you live in a haunted house. Some people believe in it, some people don't, but, let’s say, do you have to disclose that in Idaho?

Thom Dallman:                  It's not a material fact. You do not have to disclose.

Dave Burnett:                    You don't have to scare the buyer.

Thom Dallman:                  You don't have to scare the buyers. You can let them be scared on their own.

Dave Burnett:                    Yeah, let them find out. Okay, so that's-

Thom Dallman:                  I think that goes back to that like how do you prove that.

Dave Burnett:                    Yeah.

Thom Dallman:                  What's ... That's not something that's going to affect the health of a homeowner. Like you said, some people believe it, some people don't. It's not a material fact for a house that needs to be disclosed in Idaho.

Dave Burnett:                    In some states, I believe you do, if you believe-

Thom Dallman:                  I think there are a couple states that you do have to ... I don't know that it's a disclosure of if it's haunted, but it's more of a disclosure if someone has passed away in the house.

Dave Burnett:                    Yeah, now how about that for Idaho, if somebody has passed away in the house?

Thom Dallman:                  You don't have to disclose it in Idaho.

Dave Burnett:                    Okay.

Thom Dallman:                  That is not a material fact that needs to be disclosed.

Dave Burnett:                    Okay.

Thom Dallman:                  Yup.

Dave Burnett:                    Hauntings? Deaths?

Thom Dallman:                  Nope, hauntings and deaths do not have to be disclosed, yup. No, what the disclosures usually cover are more material facts about the house-

Dave Burnett:                    Right.

Thom Dallman:                  ... what's working, what's not working.

Dave Burnett:                    Mm-hmm (affirmative).

Thom Dallman:                  For example, if you're leaving your washer and dryer in the house, if the dishwasher, if you have a dishwasher, disposal, refrigerator, all the appliances. There's a whole section of appliances where you mark whether they're included, not included, if they're working or not working.

Dave Burnett:                    That old washer? It's yours. It doesn't work, but you’ve got to disclose that.

Thom Dallman:                  Yeah, exactly, exactly. The sellers have to go through and mark all that stuff that they are aware of.

Dave Burnett:                    Mm-hmm (affirmative).

Thom Dallman:                  I say that, that they are aware of, because there are people out there that are not aware, sellers that are not aware of certain things, and so they can actually claim exemptions on this property disclosure of a property. For example, if you inherited a property, you have no knowledge of the property, you've never owned it, you just inherited it. You can claim exemption, say, "I've never lived in the property. I just inherited. I just got it. It's not, you know ... I don't know. I don't know."

Dave Burnett:                    I don't know if there's a ghost in the bottom of the well.

Thom Dallman:                  Exactly, so instead of having to go through all four pages of the Idaho property disclosure form, you can just do one little small form that says, "I claim exemption, and here's the reason why." ... Oh sorry.

Dave Burnett:                    This was kind of where we go back to a previous segment, though.

Thom Dallman:                  Yeah.

Dave Burnett:                    This is the importance of an inspection.

Thom Dallman:                  Yes, very much so.

Dave Burnett:                    For example, I probably could not tell you the health, really, of my heating, my HVAC system.

Thom Dallman:                  Mm-hmm (affirmative).

Dave Burnett:                    It runs. It cools the house. It heats the house, but it might go out in a month. I don't know.

Thom Dallman:                  Mm-hmm (affirmative), exactly.

Dave Burnett:                    That's where an inspection's important.

Thom Dallman:                  Oh yeah, for sure, for sure. One of the inspections that just happened this week ... Well, I guess it happened two weeks ago, but got fixed this week, was they found a small teeny little condensation leak in the furnace. The inspector found it. Not super visible to the eye, but the inspector, who's trained to find those things, found this leak, so that we were able to ask for the furnace to be serviced and for that leak to be addressed, so it doesn't cause further damage down the road. That's what they're trained to do.

Dave Burnett:                    But that is something that somebody maybe have known.

Thom Dallman:                  Yes, well, no, not ... The seller may not have known that. They may-

Dave Burnett:                    I would say, they may, I mean ... I hate to say this, but not everybody's honest.

Thom Dallman:                  Yeah.

Dave Burnett:                    You know, it's like, "Okay, Betty, we know ... We're not going to mention the fact that the furnace is about to die."

Thom Dallman:                  Exactly. There's a whole other segment we can probably do about lawsuits of ... The reason why the seller's disclosure page is four pages long is because people have been sued for things. The sellers have been sued for not disclosing specific material facts about a house, and so Idaho's made these forms very, very, very detailed on what needs to be explained, what needs to be talked about, and so forth.

Dave Burnett:                    What else do we have on the list?

Thom Dallman:                  Oh my gosh, everything from the heating, the furnace. Anything that you know about the furnace or air conditioning, stuff you need to make sure that you're explaining, if there's any fuel tanks on the property, stuff like that. One of the major parts that they always emphasize is water damage. I would say that's the number one complaint and lawsuit that happens is a seller does not disclose a past water damage issue, and somehow the buyer moves into the house and discovers it, and then ends up suing because they never disclosed it, and stuff like that, especially if insurance was used to repair that water damage, or if that water damage has caused mold and so forth.

                                                Typically, most inspectors will find that, will see that stuff, but every once in a while, we've had a house where a leak started happening. We get a professional person in there, and that roofer was like, "Oh yeah, this has been repaired before." Very shoddily, because what they did for repair didn't work, obviously, because it's leaking again. That's where it falls back into the seller's to, did they know about it? Did they not disclose that? Should they have? That's where a lot of the legal battle happens is in water disputes, leak, mold related problems, water intrusion, things like that. People don't want to buy houses that leak for some reason.

Dave Burnett:                    Funny how that works.

Thom Dallman:                  Exactly. The plumbing system, you know, sellers need to disclose if they've had any issues with plumbing, if the water heater isn't working or not efficient. Even if they have a hot tub, they have to make sure that they explain if the hot tub's working or not, and so forth. Wells, wells are included in that. They need to disclose where the water's coming from in the house, if they know of any issues with water and stuff like that.

Dave Burnett:                    At what point in the process are these disclosures made? Is it at closing, or is it, obviously not at closing. It'd have to be before-

Thom Dallman:                  No, no. It's usually within 10 days of ... The contracts are written so that's provided to the buyers by the sellers within 10 days of the contract being accepted, so once we have a ratified contract, the sellers have 10 days to provide that.

Dave Burnett:                    Got you.

Thom Dallman:                  Common practice right now is that the sellers fill this out before the listing. We usually always have the sellers fill it out prior to listing the house, that way we can put it in the listing for the agents to share with their buyers. They can share it previous to writing a contract. I have some agents out there that will print those off and take them with them on showings, and say, "Here's a property disclosure. Before you make an offer, read through it and make sure there's nothing that stands out as an issue."

Dave Burnett:                    No surprises.

Thom Dallman:                  Yeah, exactly.

Dave Burnett:                    Thom, if somebody wants to get hold of you at Core Group at eXp Realty to find out more about disclosures, to find out about buying and selling homes, easiest way to get hold of you?

Thom Dallman:                  Sure. Give us a call at 208-933-7777. You can also email us. I never really talk about email, info@coregrouprealty.com is our email address that you can send emails to, or just go on site CoreGroupRealty.com.

Dave Burnett:                    This is the Idaho Real Estate Buzz, brought to you by Eagle Home Mortgage and the folks at Core Group at eXp Realty. Thom said give him a call, 208-933-7777. Find out why they say, "You always get more with Core."

 

 

 

 Ron Wieczorek

Eagle Home Mortgage

208 917-4983

EagleHM.com

 

 

Core Group at eXp Realty

208 639-7700

CoreGroupRealty.com

 

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