Tune in today as we talk with Michelle Guth from Diversified Mortgage about locked interest rates and reverse purchases. And make sure you stick around to hear Dave and Thom discuss distressed properties, required disclosures, and what makes Core Group Realty different than other brokerages in the valley.

Seg 1

Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnett along with Thom Dallman of CORE Group Realty. Coregrouprealty.com that is the website we'll refer to it off and on throughout the show today because it is a valuable tool for you if you are looking to buy or sell your home. 933-7777 that is the phone number to call. Thom, welcome back, another Saturday and more homes for me this week.

Thom: Oh yeah, we always like to talk about our Coming Soons because that is a leg up on the rest of the home buyers up there that are listing or our home buyers that are working with us have a first look at some of these properties before they actually hit the market. We've got a few of them sitting there in our Coming Soon section that are going to be hitting here pretty soon, maybe within the next week or two.

Dave: This is where we reference back to the website and talk about coregrouprealty.com because it is a valuable cool window there is the tab that says Coming Soon. Man, you've got a bunch of them you want to talk about!

Thom: Yep we have five of them hanging out there right now that are between the prices of $125,000 all the way up to $180,000 throughout Nampa, Caldwell, Middleton, one in Boise as well. They're just going through the process of getting them cleaned up, getting the professional photography done on them because we are firm believers in making sure that the photos for our marketing are at the top of the market rates. That they look nice and that they market really well.

Dave: Which if you're a seller, and you have not picked your real estate company that's important to know. They don't want you just slapping a for sale sign on there and saying "Let's get this thing sold," no, let's get it presented so you can get the best top dollar value.

Thom: Yes, people don't realize that the pictures, the first impression that people get when they're looking online and so when you have a real estate agent that's coming through with their iPhone and taking pictures of the property those iPhone pictures, while they're nice, iPhone's getting better an better, but they're just not the same as professional photographers that go in, take the time to set up, get the right angles, really show case the various features in the home and so forth. So it's really important to have those professional photos done.

Dave: It is, as opposed to a snap shot. And really I know there was a time where the multiple listing service basically a guy would drive up in his car, maybe get out of the car, take a picture of the front of your house and call it good!

Thom: I've shown when we were kind of showing sellers the difference between our photos and some other photos, I've shown photos where you can see the rearview mirror in the picture and knew that they were driving by in the car to take a picture of the outside of the house.

Dave: Slow it down to 5 miles an hour and take a picture.

Thom: So yeah go to the Coming Soons site you'll see several homes on there that we can get you into before they actually hit the market. Starting kind of here in Boise we have the one at 6970 South Southdale Avenue, it's a 1350 square feet house 3 bedroom 1 bath on .41 of an acre and it's listed at $160,000.

Dave: Which would be actually a nice investment property as well.

Thom: A very nice investment property yes. So 83709 South Boise area code, very nice investment property if you're looking to pick up a home for renters and so forth.

Dave: Or a first home.

Thom: Or first home oh my gosh yeah! Investment into your first home, this is a great price point for Boise for Ada county so it's definitely something to look at.

Dave: And we've talked about that in the past, you've got a gal here who is invested in real estate for her first home but that first home, you have to have a really good job to go out and buy a $300,000 first home. But to get into that one that's under $150,000, get it cleaned up cosmetically, do some stuff, sell it, get $180,00 out of it and maybe go up a step, it's huge.

Thom: Exactly, especially when you think about the fact that most people live in their homes 5-7 years, that gives you enough time to kind of do some of that remodeling stuff and kind of take a slow progress to get those things done before you kind of start, whether you're starting a new family, starting to grow, what not, whatever the reason is to upgrade your home and get a bigger home, you have that flexibility.

Dave: And a perfect time to do that on South, what was the address again?

Thom: 6970 S. Southdale Avenue

Dave: That's the only hesitant there is having to say South Southdale.

Thom: Exactly! So we do have a couple properties in Middleton so the first one's 523 Halverston Street, it's a 3 bedroom 2 bath at $138,000 a really good price point once again. 1,162 square feet with a 2 car garage. It's got a nice family room on it and the irrigation watering for the yard. I love to always point out the irrigation.

Dave: Well it's a good deal!

Thom: Yes, saves you good money when you're not feeding off of the city water for your yard.

Dave: You live in Boise and you want to water your yard? It's going to cost you a chunk of change!

Thom: Exactly. So 523 Halverston Street and then the second one is 1359 Raptor Drive in Middleton. This is a 4 bedroom 2.5 bath 2,100 square feet. Nice big home, 2 story on .28 of an acre and listed at $180,000. A lot of space for $180,000. Once again it's got the irrigation on it, corner lot, fully fenced, another family room with a den and an office so nice home, 1359 Raptor Drive. Nice big home for $180,000.

Dave: And to point out again, at coregrouprealty.com these will be under the Coming Soon tab at least for a little bit longer until they go active.

Thom: Exactly, pretty soon they'll move over to the featured listings section.

Dave: And then everyone's got a shot at them!

Thom: Exactly, so two more, one in Nampa 80 West Canyon Street in Nampa it's a 3 bed 2 bath, $125,500 is the price on that for 1200 square feet 2 bed 1 bath, it's been recently remodeled this year. It's a single level with some square footage below ground. They've put in some granite counter tops, it's fully fenced, RV parking and once again, irrigation. Irrigation watering the yard.

Dave: Just between the RV parking and irrigation, that's two real big pluses.

Thom: Oh yes exactly, two big money savers and once again $125,5000 for 1200 square foot house a really good price point as well. And the last one on the list is 3522 South Florida Avenue in Caldwell. 3 bedroom 2 bath 1100 square feet, listed at $130,000. Built in 1933, RV parking once again, it has a covered patio, just a really nice house for $130,000 3 bedroom 2 bath so.

Dave: And good access there off of South Florida, you've got access both to Karcher Road and over to the Boulevard it's kind of right in between there.

Thom: Convenient to everything!

Dave: You really truly are, that Caldwell/Nampa area and we've talked about this last week, it has grown and you don't have to, sorry Boise Towne Square Mall, but you don't have to come to downtown Boise to shop.

Thom: No, you have so many options out there right now with all the shopping that they've put in on both sides of the freeway and at the mall itself. The mall has really grown over there and gotten so many different places that you can go to, restaurants, movie theaters, all that good stuff.

Dave: I was talking to somebody here about 2 weeks ago, they live in Caldwell. They said they never come to Boise.

Thom: Oh really?

Dave: This was at a Boise State Football game, they said "This is the first time we've been to Boise in months."

Thom: It happens, I hear that all the time with people from Nampa, from Caldwell, they're like "Oh just don't really ever need to get over to Boise.


Dave; When I first moved here in 1988 that wasn't the case. You know, you lived over there they had the Karcher mall and then they opened up the Boise Towne Square Mall and everybody came to Boise to do the shopping, to go out to dinner, to do their thing, but this was the case, they said it had been months since they had been to Boise.

Thom: Yeah, there's just no need for it anymore!

Dave: I think that in reality, that's a good thing. Sorry to the Boise Towne Square Mall, no offense.

Thom: No offense at all.

Dave: No offense but there's lots of options out there. Coregrouprealty.com, that is the website where you can go and see the Coming Soons and we'll talk about, oh, you have a featured you have out there that you want to talk about as well. And the featured’s are the ones that are already listed.

Thom: Our listings are ours here in house. I just wanted to really quick talk about one of them that has had a price improvement recently. It's a nice 5-acre property out in Payette, it's 845 North 4th Street. We just dropped the price to $215,000 for a 5-acre property. It's got a 2,091 square foot house on the property, 4 bedroom 2 bath available as well. Some great possibilities especially because this is kind of in the heart of Payette. And 5 acres with street acres on both ends of the property, there's so many different possibilities for it. There's so much to do with it.

Dave: I guess it depends on zoning but is it something a builder could come in and subdivide that?

Thom: I would imagine so? 5 acres gives you some great options for subdividing out. We'd have to look at what Payette's county as as far as their planning and zoning and what their permits are running these days but I would imagine that it would be a great opportunity to be able to go in in the heart of Payette and do some kind of a subdivision.

Dave: Well that's where your agent would get a hold of the people involved in Payette county and find out what it takes. So whether you're subdividing for a subdivision or want to keep them in acre lots or whatever you want to do. And that is where the CORE Group Real Estate agent would get on that and find out for you. It would be a great opportunity there in Payette. And you've got one more?

Thom: Yep! Ring perch, 7086 West Ring Perch. 5 bedroom 2.5 bath 2 story over there in the South Fork subdivision. Great property, listed at $325,000 right now. Just so much convenience, it is off of Victory and Cole so you're convenient to all of the South Boise access, the movie theaters, the malls and all that stuff.

Dave: And the freeway.

Thom: And the freeway, yup! Just an easy jump down Cole to jump on the freeway. That is 7086 West Ring Perch Court at 325 nice 5 bedroom 3.5 bath.

Dave: South Fork subdivision.

Thom: Yes, in South Fork.

Dave: And J.R. does not live there anymore. J.R. Simplot. I was thinking of J.R. Ewing in South Fork. It's a vague Dallas reverence. We'll continue on the other side but we want to encourage you to go to coregrouprealty.com if something is of interest here, you just want to check out the Featured Listings you can do that they are posted there right now. You can go to coregrouprealty.com. We'll continue on the other side, we'll talk to Michelle Guth with Diversified Mortgage find out what is happening in the lending world. We kind of sparked some interest last week when we talked about reverse mortgages. Are they a good thing? Are they a bad thing? And Michelle set us straight but I think we're going to continue on that topic this week as well and talk about several other things today. Going to talk about haunted houses.

Thom: It's that time of year!

Dave: It is that time of year as we're approaching Halloween this weekend, I guess it's on Monday. We'll talk about that as well here on 580 KIDO


Seg 2

Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnett and we get to talk to Michelle Guth over at Diversified Mortgage each and every week and when I say we get to talk to her, we learn so much on these segments. Michelle, we really do. Diversified is an Equal Opportunity Lender, but we talked last week about reverse mortgages and I've always seen the ads for them where they get Hollywood celebrities to pitch these but you said these really are a good thing.

Michelle: It's an incredible program. It certainly has its niche for which consumer it would make the most sense for but especially with the purchase transaction if somebody wants to downsize or even say purchase a second home there's all different kinds of ways you can try and leverage all of those assets in your equity to have them work for you

Dave; Well in just a short paragraph if you could just recap what is a reverse mortgage, how does it work for those that didn't hear last week?

Michelle: OK so for a consumer that is age 62 or older that has a large sum of equity in their home, the reverse mortgage allows them to utilize it in various ways as far as an income stream, a line of credit, or even just to pay off the existing mortgage. The amount of equity that they have to have available is contingent upon their age. There is a calculation that we have to do but it is a tremendous program for again an asset that is typically non-performing and is typically one of the person's biggest assets in their portfolio they have is the equity in their home which is doing nothing for them and helping their quality of life.

Dave: Now you talked about that formula and that's based upon life expectancy so if somebody's a vampire and they live a long time, they don't get kicked out of their home.

Michelle: That is correct, you do not outlive the mortgage which is another huge benefit. We also talked on the fact that the heirs upon your passing have the ability of selling the home and taking the remaining equity or if you're in a negative equity position and there is no equity available they have the ability of just calling the servicer and informing them to foreclose on the home and it doesn't impact the estate value so they get the best of both worlds.

Dave: So, the lending institution just takes it over at that point, they go sell it and recoup their losses.

Michelle: Correct.

Dave: OK so that is how a reverse mortgage works and you have heard it on TV too and wondered like I have "OK is this some sort of a bad situation?" but what are some of the other things you want to talk about and cover here with reverse mortgages?

Michelle: Well I think one of the biggest benefits is that they do not have a mortgage payment so that's where I was referring to can really change their quality of life if they're on a fixed income and you currently have a mortgage payment that could be a good portion of whatever your monthly income is. So with the reverse, again the reason it's called a reason is because the interest is growing against the mortgage balance because you're not required to make a payment. Now that's not to say you couldn't if you so choose to, but that would defeat the purpose of the reverse but you can pay it off, refinance it, do whatever you want at any given time, there are no restrictions.

Dave; OK let me ask you this question. So do you lock in on an interest rate and it stays at that interest rate or does it fluctuate or how does that work?

Michelle: Great question. Depends on the program, it's contingent on if you do a fixed rate option or a line of credit option so there are different options if you want to lock in that rate, that is an option but the line of credit is going to be a variable rate program.

Dave: OK, but, if it's a line of credit, would that, given the situation we're in, we're not in all likelihood I mean we don't have a crystal ball but we're expecting interest rates to go up, would that be a good option to take?

Michelle: Well, again if your concern is just to stay in the house for perpetuity, then really the interest rate is really not as much a concern than it would be if you were trying to pay off the mortgage. So again since we're not using that as our primary focus, we're trying to utilize it as either an income stream or just wipe out the mortgage in its entirety it's not as much of a concern. And there are caps on there so each program has a lifetime cap as far as how high it can go, but again, it's going to be unique to their specific situation as to which program is going to make the most sense.


Dave: OK, very good. You think about it, you have a mom or a dad perhaps they're retired, they're living in their home, and maybe their payments are $800-$1,200 a month, suddenly that's $800-$1,200 income that goes right back that they don't have to spend, that's huge.

Michelle: Oh, it's significant and for many people that could be the difference between being able to stay in your home versus having to sell it just because the mortgage does get to be too much on a fixed income.

Dave: Wow, some of the other advantages?

Michelle: We do them for purchase transactions. So I have a client right now that is doing a reverse purchase and the benefit to it is they are going to have a large amount of down payment but again they're on such a fixed income that the house that they want would warrant the payment that they're not comfortable with.

Dave: OK explain that again, a reverse purchase, what's happening?

Michelle: So basically it's just like a traditional mortgage where they're going to put down a large down payment again contingent upon their ages how much that's going to be, but they are not going to have a required mortgage payment after they close on the house. It allows them because they do have a good sum of equity to put down, it allows them to get more of a home than what they're currently in because they do have a good down payment but yet negate having to worry about making that house payment. So, for example, there are some income requirements that we have to calculate for a reverse mortgage but it's different than that of a forward mortgage, it's just not a debt ratio. They look at what's called residual income. How much do they have left after their expenses and so forth. It's a little more forgiving than a traditional mortgage so as a result, they’re getting more of a house, they're able to retain some of the equity from the sale of their home, and not have a mortgage payment. So they're getting the best of everything. So it's nice that we're not having to say "In order to qualify I have to take your full $160,000 you're netting from the sale to put down just to get your debt ratio in line on a traditional mortgage." versus we're doing $100,000 down they're retaining $60,000 and they have no mortgage payment and they're getting the house that they want versus having to settle for a lesser priced home because their debt ratio wouldn't warrant it on a traditional mortgage.

Dave: Is this something, a loan that just recently came up or have they been around for a long time we have just recently heard more the past few years?

Michelle: No they've been around quite some time, however the government stepped in several years ago and made them basically an insured product under the HUD program so there's added protections for the consumer. Early on they didn't have the level of protection but because it is a HUD insured program, there's several protections in place for the consumer now. It's a great program.

Dave: We're talking to Michelle Guth with Diversified Mortgage. A phone number to call in case somebody wants to talk to you about a reverse mortgage?

Michelle: Would love to hear from you, phone number is 853-7878.

Dave: Do you see many of these happening Thom or talk to many people that are involved in these?

Thom: Not recently I haven't really had an opportunity to chat with anybody that I know of.

Dave: I guess for a real estate company it's not something that ...

Thom: Exactly, it's something that's really interesting to know about being able to use that for a purchase because we do have people that are in homes that are of that age and are downsizing and empty nesters as they are commonly referred to so that's a good tool for me to have for my agents. I'm going to make sure that they know about it as they're kind of talking about these different options that they have when they do go to sell homes and are looking at something like this to purchase the next home downsizing would probably be a great opportunity for them as well.

Michelle: Absolutely. I've even had a client, she wanted to see her assets which was going to be the equity of her home, which she was going to pass on to her heirs, she wanted to see the benefit of that going to her grandkids so what she had done, she owned her home free and clear, wasn't in a position where she could afford a mortgage payment but she didn't want to wait until she passed away to have them sell the home and get the benefit of the equity. She then took those funds and gifted it to her grandchildren which in turn used it for a down payment on their home. So there's all kinds of ways we can structure it.

Dave: What would you say if I were to ... I'm going to put you on the spot here, top two questions that people have for you when they sit down to talk about a reverse mortgage. What are the top two questions that you're asked?

Michelle: Well the biggest one is the misconception that the bank owns your home, they always say with the reverse mortgage "I don't own my home anymore." so again it's no different than a traditional mortgage. They have an interest in your home and a lien against it, but it's still your home and you're the vested owner on title so that's the biggest one. The other one is just that they are going to get kicked out of their house down the road. So again, you're not going to have to vacate the home as long as you have it as your primary place of residence you cannot outlive the mortgage and you can live there like I said for perpetuity. As long as it's your primary residence you will stay in the property.

Dave: So it's a great deal!

Michelle: It's an incredible program.

Dave: If you have seen the ads on TV talking about reverse mortgage, I recommend you call somebody local, somebody you can reach out to and really ask the questions and let's go ahead and forgo the 800 number, let's talk to Diversified Mortgage about this, somebody that can really give the answers, you can look Michelle or her agents right in the eye and say "OK tell me about this" and know that this is a great program!

Michelle: Absolutely, and at that point we encourage you to bring in your kids if they have questions or concerns, bring in your family members so we'd be happy to sit down with the whole family and how it's going to impact their estate and their long term plans.

Dave: Yeah let's be honest, there are going to be some kids that will go "Wait a minute, I was kind of counting on that house, mom or dad, to get that"

Michelle: Thankfully that is not the case most of the time. They see the benefit in the increased quality of life that the parent has with having that extra residual income every month.

Dave: Yeah let's just call it what it is, mom or dad have more money to live on. That's the bottom line there. Diversified Mortgage is the company you need to talk to, Michelle Guth and her team there at Diversified and it's all about the reverse mortgage. Michelle again if somebody wants to get a hold of you?

Michelle: 853-7878.

Dave: We will continue on the other side, this is the Idaho Real Estate Buzz here on 580 KIDO.


Seg 3

Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnett along with Thom Dallman who is the co-owner and designated broker of CORE Group Realty. Coregrouprealty.com is the website 933-7777 is the phone number that you can call. You made a comment during the break, and I'm guessing, I'm not quite sure what it meant, but you were talking to Michelle about distressed properties and I'm sitting there like I know what you're talking about but what is a distressed property?

Thom: Sure, when we talk about distressed properties we commonly refer to them most distressed properties I guess you could say are kind of those properties that have for one reason or another have gone into either foreclosure or have been taken over by the banks, are up for auctions, maybe they're in an estate sale where you know some people have passed away, they owe more to the bank than what the house may be worth or maybe it's even a distressed property is a property where the condition of the house is really bad. And that's what we were talking about, in that instance, it was just a house that was just in such a distressed state that it is literally not habitable and so there comes problems with loans and types of things you can do with those kinds of properties.

Dave: Well let's get in our way back time machine here, let's go back 4 years ago, 5 years ago, there were a lot of properties you'd see tags on the doors where they re-possessed and the people were tossed out of their homes. There was a lot of that!

Thom: Yeah, part of the big economic downturn that 2008-2010 timeframe was huge and led to a lot of those distressed properties. A lot of people bought homes at the height of the market and didn't have the equity when it came time to sell for whatever reasons. We've seen a variety of reasons, from being relocated for jobs to deaths in the family to divorce in the family. People have needs for selling their homes but they just don't have the equity.

Dave: Or they lost their job. A lot of that.

Thom: Yes, exactly. So, they owe more than what the house is worth and so that's when it's as it is more commonly refers to is distressed properties when you see reports on sales of distressed properties and stuff like that. Right around 2012 if I remember my stats correctly, we were probably about 35% of the home sales that we were doing nationwide were a distressed property. 35% of the homes that were sold were a foreclosure or a short sale or some kind of distressed property where people were upside down. And just recently the national association of realtors just released a report that we're down to 4% nationwide. 4% of the home sales have been distressed properties. Huge decrease there. That's just a testament to the rise in home values that we've gone through. There's just not a lot of those distressed properties out there anymore.

Dave: Worked with a guy, his wife works for a major lender. She was always talking about jingle keys. I had no idea what she was talking about, but she was talking about people that just mailed in their keys. So jingle keys, here's the keys of the house!

Thom: Deed in lieu!

Dave: We're not there anymore. So we're down to 4% now for distressed properties.

Thom: Exactly! All-time low nationwide for distressed properties and actually I ran the numbers for Ada and Canyon County, and surprisingly enough, Canyon County's equivalent they're about 4-4.5% of the home sales for September and October are distressed properties. Ada County was at 2.9% for September and is at right now for October down to 2% of the home sales are distressed properties. So that is either bank owned properties which means it's gone through the foreclosure process or a short-sale property or is kind of in the foreclosure process.

Dave: Did kind of the birth of some of these remodel shows on TV really kind of come from there when people were just out there buying distressed properties fixing them up to flip them?

Thom: Yes, that is what the huge draw is for distressed properties are those investors that are doing flips because you're buying homes for under what the market really actually holds for them because of the fact that they're distressed there's a stigma that goes to them, a lot of these homes are abandoned for the foreclosure process takes, you know, a long time for the banks to actually get them marketed so a lot of these homes are abandoned for a year.

Dave: And trashed.

Thom: And trashed, people get really upset when they get foreclosed on and will go through and I've seen houses with all the kitchen cabinets ripped out, the flooring all ripped out, everything possible that you could think of, they've ripped it out. Toilets, I've gone through homes that have had people so upset that they've actually poured concrete into the toilets and the sinks which all that stuff, you can't just chip that out. You have to go through and remove all that plumbing and stuff. So the variety of distressed properties that you can run into is huge and of course that decreases the value significantly and that's exactly what those home flippers and investors want are those properties that have been torn up and that they can go in and do their remodel on to fix it up and make it all nice and pretty again and get top dollar for it.

Dave: And the banks are just looking to get their investment back out of it.

Thom: Yes, exactly. Whatever investment they can.

Dave: There's a chance you could get a really good buy on that. Does CORE Group Realty, do you get a list of those distressed properties? Do you have access?

Thom: Yes, we have access to all of those distressed properties so we can look for that in the MLS and so forth so we can set up specific searches just for those properties. Once again, at an all time low, especially in Ada County there's just not a lot of them so just be patient! But yeah there's a lot of home flippers out there. We continuously about every 6 months get some kind of a seminar that comes through town that says "You can make money flipping homes and here's how you do it!" and that's one of the things that they look at, is make sure you're getting out there to look at these foreclosed on properties, auction properties and so forth. And when we're in an economy that we're in now where it's just, they're just not as prevalent, you've got a lot of competition out there for those flips.

Dave: And there are people who do it for a living that don't just do it on a whim, and they might have an advantage. Let me just ask you this, kind of, it's on the topic but ... I didn't prepare you for the question, on some of these shows, they show that these things are homes where you must buy sight unseen, that you don't get a chance to preview the home because you see the home flipper guys looking through the windows. If it's a distressed property, you can see the property, right?

Thom: Most of the time yes unless there is something seriously wrong with it. I have seen some properties where they've had such major black mold issues that they don't allow people to come through the house or they sign waivers if they do and so on and so forth but it's very rare that you don't get the opportunity to actually get in to the house. Especially once you've put in an offer on the property, there are some homes that may have tenants that they don't want to be bothered or interrupted so they will say "All offers are subject to being able to access the house after the offer has been accepted" and stuff like that. So, there are rare occasions but for the most part these are REO properties and so forth. You can usually get into them somehow or get to look at them somehow. Unless you're doing a trustee deed, going down to the auction house for a trustee foreclosure. That might be another segment where they do actually look in the windows and you don't really get access to them. You kind of have to buy them that way.

Dave: That's what I was going to say, for most of these distressed sales you're just running through an agent, through a bank, they're not an auction.

Thom: Yeah most of them are not the foreclosure auction, the initial foreclosure auction down at the courthouse. These are distressed properties that have already gone through the foreclosure process. The banks have kind of taken them over, they've asked for a real estate agent to get it listed and to see what they can see and what value they can get in it's current condition and stuff.

Dave: So getting to where we're about 3-4% in Canyon County of distressed sales, is it because the amount of the population has moved back in to the area that we've absorbed the inventory that was out there? Is that's what's happened? Or are people just gotten out and now have gotten back in homes?

Thom: I think it's kind of a combination of a lot of things. I think our economy is doing really well so people are able to afford their homes, people aren't losing their jobs, and so that attributes a lot to it. I think that just the affordable interest rates, our interest rates are really good right now, make it easier for people to maintain their homes and keep their homes. There are so many different ways that you can re-finance your home and keep yourself current with the interest rates and tuff like that. I think that people just have that value in their homes and are able to keep those homes because of keeping a stable job and stuff like that. I think really it's been a big example of our economy right now, our economy is doing really well.

Dave: Doing well, the free market works well. It does, it's a system where capitalism, the free market whether you like it or whether you hate it, it works well. It's a situation here where it has worked well here in the Treasure Valley and for real estate. We're going to take a break in the program maybe you're interested in flipping and want to find out more. Thom and his folks here at CORE Group Realty more than happy to sit down and talk to you about the pluses and the minuses, the blessings, and the headaches of flipping a home.

Thom: Yes, a variety of things that you need to think about and take into account when you're looking at those.

Dave: You can give a call to 933-7777 set up an appointment, they'd be happy to talk to you about that if you've always wondered about flipping homes and buying distressed properties. We'll continue on the other side, this is the Idaho Real Estate Buzz here on 580 KIDO.


Seg 4

Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnett along with Thom Dallman of CORE Group Realty. Coregrouprealty.com is the website. Thom is the co-owner and designated broker of CORE Group Realty, more than happy to talk with you if you've like to give him a call 933-7777 is the phone number, or coregrouprealty.com you can email through the website too ... er

Thom: Yeah! You can email through the website, there's a contact us button there and various ways that you can reach us via email if you don't want to talk to us on the phone, or if you just want to give us a call the contact information is there to reach out to us and ask whatever questions are burnin’ you up right now.

Dave: We say this off and on about this show, this is not about buying and selling homes. Thom could buy and sell homes without this show. You know, you can buy them, you can do it. But this is about empowering you the customer, whether you are selling a home because you may only do this every 5-6-7 years, it may be 20 years since you've sold a home and/or bought one and things have changed so much over the years. Even in the way they list, the way the homes are marketed, it has all changed so much since probably the last time you bought or sold a home so you need and talk to the folks at CORE about what do you offer me as a real estate company and really sit down and interview them. Find out and quiz them, I mean I don't think you're bashful at all to have people say "Alright Thom."

Thom: "What makes you different?" I just had this conversation on Monday of this week with a client that called in and said 'What exactly makes you different from anybody else?" So, not afraid to have that conversation and not afraid to talk about what makes us different and stands us apart. And, I really firmly believe like you said, this is one of your most important investments you're going to make in yourself, you need to make sure that you have all the right trusted advisers we talk about that all the time. Make sure you have the right person, we may not be the right fit for everybody so it's really up to you to make sure you're interviewing and talking to as many people as possible to make sure that you're making that right choice.

Dave: Perfect, and CORE Group is very honest, very open, and a very comfortable atmosphere to come in to talk. It's not a threatening we're going to press your hand to a contract sort of deal because you don't want that.

Thom: No, not at all.

Dave: You don't want somebody who doesn't want you. Find out what some of these leads are, what CORE Group has to answer, give them a call at 933-7777. In fact, somebody standing by they're going to answer the phone right now, one of the Customer Care agents. One of the things I wanted to talk about as we approach Halloween coming up in just a couple of days, and that is disclosures. The importance of them. And let me tell you, and some people might not know this, some of the most purported haunted houses in Boise is called the Murder House. It's over off of Leadville and Linden right off of Broadway. Back in 1987 a horrific murder took place there where a young 20-year-old man's life was taken in the basement. They ended up finding him out at Brownlee Reservoir and people have said after that point that that house is haunted.

Thom: Interesting.

Dave: The current owner doesn't allow any paranormal stuff; he tells the media "Leave me alone" the house is fine. The people who have stayed there have said no there are some oddball things happening in this house.

Thom: How very interesting. I'm always fascinated by that.

Dave; Me too, but I've seen on TV before where you're required to let them know if it's haunted, or you're required to let them know if a murder has taken place there. Is that the case here in Idaho?

Thom: Interestingly enough, no it's not the case in Idaho. You don't necessarily have to let people know if a murder has taken place in the house or if you believe that it's haunted. It's considered a stigmatized property at that point, there are some debates over whether that decreases the value or not. If a buyer was aware of it, would they pay less for it if they knew about what happened in a house or not. Technically the concept of disclosures and what sellers need to disclose are things that, the way I like to explain it myself personally is the things that are going to affect the safety and soundness of the house and the individuals living in the house. A reported previous death or hauntings don't usually harm people and stuff and so it becomes a stigmatized property instead of an adverse material fact that needs to be disclosed on a property.

Dave: To be honest, hauntings, you believe it or you don't.

Thom: Yes, exactly.

Dave: You believe that Aunt Ethel's haunting the house or she's not.

Thom: And interestingly enough, along this lines I just read a report recently that realtor.com did because it's Halloween so there's all kinds of interesting little things out there but they actually have reported that there is 2% of the home buyer population out there that would pay more money to live in a haunted house, if it were reported to be a haunted house, than if it were not. It's an interesting fact that there are actual people that would pay more money to live in a haunted house, it's a very specific buyer pool but yeah there are people that would pay that little extra premium for that.

Dave: I'm going to go out on a limb and say you've never had anyone come in to CORE Group Realty and say ...

Thom: Can you find me a haunted house! Nope, that's not something that has ever come up!

Dave: Well, you know, it is interesting because there are those homes. Especially along Harrison Boulevard, or you get along Warm Springs some of those older homes that have been reported to be haunted and in part just because they have a long history. There's haunted tours going on right now around different areas, different buildings you know the Idanha Hotel, the old Penitentiary Building. You know the old Penitentiary reported to be one of the most haunted places... that's interesting that you don't have to disclose that though. But, there are things that are disclosed.

Thom: Yes there's a certain kind of encouragement I guess you could say for Sellers to disclose a murder or something that has happened like that just because during the home buying process the buyers could go see the neighbors out and about say "Hey I'm looking to buy this house could you tell me a little bit about living in that neighborhood" and they may divulge that. So you wouldn't want to have a sale necessarily ruined because they found it out through other people that there was a big mass murder in the house. There's a certain kind of thought of while you don't have to disclose it in the state of Idaho, should you and should you not necessarily disclose a haunting, but a murder or something like that in the house just so that people have that knowledge before they move in.

Dave: Well, here's a tip. You don't have to disclose it, but if you're buying a home, there is a thing called the internet. And it will tell you! But there are things that have to be disclosed. For example, if your house has been used as like a meth house.

Thom: Oh yeah!

Dave: That has to be told.

Thom: Oh yeah because the chemicals and stuff that they use in the process of making Meth creates some very bad stuff, bad oils, toxins throughout the house. There's a huge process to re-mediating that oil and stuff so once again, health concern trying to get into a property like that so that needs to be disclosed if it is known that is a very very big adverse material fact.

Dave: I remember when they passed that law that it was kind of controversial to a lot of people that said "No! We don't want to have to do that" but the legislature said "No, yes you are!" But like if your home has had black mold, if it's had issues like that, do those have to be disclosed?

Thom: Those have to be disclosed, any kind of once again Health safety that, even though it's been re-mediated and cleared out, the fact that it was there in the first place needs to be disclosed and needs to be disclosed that it's been re-mediated and what process has been taken.

Dave: Something like black mold, how big of an impact does that have on the sale of a home?

Thom: I think it's a pretty ... well, it's kind of one of those facts where some people are "as long as it's been re-mediated it's fine" they are OK with it, there are other people that do have that, they have that fear. They have that fear that they don't want to take the chance. Especially family with elderly or little kids and stuff. Just maybe they don't want to take that chance. As long as you're straight forward and do the remediation as necessary, I don't think it should be that big of a concern as long as the situation has been taken care of to fix to make sure it doesn't happen again and that all of the toxins have been re-mediated by a professional.

Dave: And with that, I'm not going to go home and go "Eh, I think I've got black mold. It says something in the home inspection.

Thom: Yeah we've talked about this in the past where we really encourage once every 2 years, 3 years, have a home inspector come by. Do a quick little look up in to the attic and look in to the crawl space to make sure there's not mold growing in the house. The remediation of smaller mold contaminations early on is so much cheaper than having to find out that your whole attic has been growing a petri dish of molds.

Dave: It looks like your bread drawer!

Thom: Exactly, so some of the other things that we've seen I guess you could say get people in trouble is not disclosing maybe your roof leaks that's one of the most common things that seems to happen. Maybe shingles have been blown off and then all of a sudden there's a leak and sellers have that fixed but don't necessarily report it. Then after the fact something has happened and it all of a sudden pops back up and the buyers are upset because the sellers didn't disclose that at first. So even a small minor leak in your ceiling should be disclosed and informed that the repairs have been made. We're a company that firmly believes in making sure that you disclose every little thing that you can, just to make sure that there's no trouble that you can get into with the buyers finding out that fact afterwards and coming back after you.

Dave: Well if you've got a ghost in your house, you don't have to disclose that, if you're going to sell your home and we do want to remind you that as you get ready to go out and about on Halloween on the 31st, watch out for kids that are out and about. Of course, this weekend there's a lot of Halloween parties tonight. Watch out please don't drink and drive, get a designated driver. Have fun at your Halloween parties but especially if you're going out like on Harrison Blvd which is the trick or treat central watch out for kids. They just kind of get a little dumb on Halloween.

Thom: And a lot of those kids are wearing dark clothing because of their costumes or what not. They are not the easiest to see if you're a parent make sure that you're putting reflective stuff on those costumes so they can be seen for sure.

Dave: And enjoy your Halloween out there. This is the Idaho Real Estate Buzz we do it every Saturday where we talk about things happening in real estate to empower you the buyer, the seller out there. Thom Dallman who is the co-owner and designated broker thank you so much for joining us again, We'll do this next Saturday here on 580 KIDO.


Thom Dallman
Core Group Realty

Michelle Guth
Diversified Mortgage


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