Join in today on the Buzz, we are talking to Michelle from Diversified Mortgage about the benefits of working with a local lender. And then later Dave and Thom are talking about how to make your current home feel new and then taxes, taxes, taxes. Do you know what a 1031 exchange is? You will know after this episode!
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 to go to or you can always call 933-7777 and Thom, somebody is always there standing by to answer the call to help direct people in what they need to do.
Thom: Yep we always have someone on the line to help you in whatever way possible whether you're calling to find out some information on a specific house all the way up to just wanting to know some information about a certain area in town. Even if you want to call and find out what the weather is like! We've got people standing by to answer that question!
Dave: In fact, we can test them now, 933-7777 get the forecast. The weather phone number, used to be a common thing come to think of it. You used to call a phone number for the weather. 933-7777.
Thom: It's funny that we do actually have people who, that is one of their main questions that they call in for, especially out of state buyers. One of their most frequent questions are "What is the weather like in Idaho?"
Dave: And you know, there's a misconception out in the area that it snows from November to March. It doesn't, but people think that it does.
Thom: Yeah they think that we're in the frozen tundra’s of Alaska as I like to put it.
Dave: We're looking at just gorgeous weather at the end of this week and for the weekend so. Now, on the website, coregrouprealty.com there is a Coming Soon tab where you have a preview of homes that are available before they're actually on the marketplace. To give people a little head start.
Thom: Yeah, we like to make sure that we have plenty of time in our marketing program when we bring on listings and so that gives us the opportunity to have a week or two to actually put them on our Coming Soon tab. They’re in the process, they're getting their professional photos taken, they're getting the house in order so it shows nicely and so forth. Getting it staged and what not. All of those homes that are in that queue waiting to get listed on the MLS show up on our Coming Soon tab and are available for anybody who wants to go get a sneak peek. Beat the crowds before it hits the MLS!
Dave: Now let me ask you, there's a photograph of the house on their because you talked about getting ready with professional photos. There is a photograph of them though?
Thom: Yes we usually try to take one photo at least of the front of the house so you can kind of see a little bit about what you're signing up for. It does have the descriptions on there, it talks a little bit about the house itself. There are currently I believe 6 properties listed on our Coming Soons that should be listed there int he next week or two. Kind of a variety of homes all the way from South Boise, Meridian, out to Caldwell and Middleton. So, definitely have a few options to take a peek at if you want to take some sneak peeks and beat some of the other home seekers out there.
Dave: You better get a pad and some paper down and get ready because there's half a dozen here. So let's run through these rapidly and find out what's out there available.
Thom: Sure! Let's start with Boise. We have the house out at 6970 South Southdale Avenue in that Fox meadow Subdivision just right there South of Lake Hazel off of 5 Mile. It's a 3 bed 1 bath 1300 square feet coming on the market for around $160,000. Really nice price point for 3 bed 1 bath out there right behind the used to be a Paul's but it's an Albertson's I believe.
Dave: Oh it is, yeah.
Thom: Great spot, great location, and great home. 6970 South Southdale Avenue in Boise. Jumping over to Meridian, we have one coming on at 303 East Ironstone Court. That is in the Ventana Subdivision. I hope I pronounced that right. In the Ventana Sub right there at Meridian Road and Chinden Road. This is a 4 bed 2.5 bath 2182 square feet with a 3-car garage and it's being listed at $245,000.
Dave: That's really a really hot area out there in Meridian. The North part of Meridian. It's just stuff going in all the time, new businesses.
Thom: New businesses go along there on Chinden and is it Meridian Road and Linder?
Dave: Linder, it's where the Fred Myers is at, all of a sudden ...
Thom: All along there, it just seems like there's new this and that every time I go by!
Dave: I'm always like "Wow, it's one of those cities!"
Thom: So yeah that's another great spot! Once again it's 3038 East. Ironstone Court. Jumping over to Nampa real quick, we have 80 North Canyon Street a nice little remodel that's been done 2 bed, 1 bath, 1200 square feet at $125,500. That is in that Yale Park subdivision. It's right off of the boulevard on Northside Boulevard near downtown. Near downtown Nampa. Really cute house, a remodel done up, 2 bed 1 bath $125,500 at 80 North Canyon Street.
Dave: That price point, $125,500, that's a great starter home or a great rental investment property.
Thom: Oh, for sure, yes, definitely a great one for that.
Dave: I don't know how much the payment's going to be on that, but I'm gonna tell you, it's going to be lower than rent!
Dave: Michelle Guth from Diversified Mortgage could probably tell us right off the bat how much it would be.
Dave: You're going to pay less than you would for rent for that.
Thom: There is the potential for it, so it's definitely something to look into if you're paying rent right now and thinking about purchasing a home. First time homebuyers, this is a great option for you.
Dave: What else is on there?
Thom: Another great option for first time home buyers is a 3 bed 2 bath in Caldwell. It's at 3522 South Florida Avenue. Starlight subdivision right there off of Caldwell Boulevard. It's a 2-car garage single level 1176 square feet, 3 bedroom 2 bath. Once again listed at $130,000. Or going to be listed around $130,000. Another great price point to kind of jump into a starter home.
Dave: Good you say "going to" because again this is on the Coming Soon tab at coregrouprealty.com.
Thom: Correct. And then we've got two more over in Middleton. One at 523 Halverson Street in the Plum Tree Subdivision. It's a 3 bed 2 bath 1100 square feet at $138,000. 2 car garage, once again that's 523 Halverson Street in Middleton. Great little subdivision off of Cemetery Road South of Main Street and then 1356 Raptor Drive in Middleton coming on at $180,000. So this one is actually a 4 bedroom 2.5 bath at 2100 square feet so nice bigger home with a 3 car garage on .28 of an acre. That's in Middleton Heights right there off of Middleton Road, just South of Main Street. 1356 Raptor Drive.
Dave: You know it's funny proving that I don't really have much to do in my life, I ran across a photo an aerial photo of the Treasure Valley from 1986.
Thom: Oh, I bet you that's interesting to compare to current.
Dave: Yes, so I compared it to a Google Earth photo from today, or from the most recent one there. Oh, my goodness. That Middleton Star area, they just used to be just little blips on the map of you know, a convenience store and a gas station and that was about it. And they have grown so much.
Thom: Yeah we've got so much growth going on in those areas because people do like that kind of smaller town feel and that's what they get there. They get the community feel, the smaller town but still have access to the Treasure Valley so easy to get almost anywhere in town.
Dave: The other thing it proved to me though was once you get out beyond that into the country, you start going ... it's still very rural.
Thom: Oh, yeah!
Dave: People have grown right around there the Boise Meridian Nampa area but you get out beyond that towards Homedale, out towards that direction, not too much of a change. Still rural life at it's very very best. Which, there are homes on the Featured Pages that whether it's Homedale or some of the other rural areas, you've got homes out there for that country living.
Thom: Oh yeah, talking about country living in Star, we have that beautiful home by Innovative Custom Homes at 2305 North Coldcreek Avenue. Brand new home that was just built for the Fall Parade of Homes. It's a 4 bedroom 2.5 bath with 2146 square feet listed at $318,000. Beautiful home, really well done.
Dave: It's got everything.
Thom: Exactly! Innovative Custom Home Builders is our in house custom home builders and they just do a great job and once again this was in the Parade of Homes last couple weeks that we had it this Fall. So, a Parade home. Great opportunity to get yourself into a nice Parade home.
Dave: The Parade of Homes is over; you can't just go walk in there ...
Thom: Yeah, you don't get to go view it unless you get an agent to take you in there.
Dave: So give a call, 933-7777 even though it's Saturday afternoon, you're still going to get somebody lined up if you want to go see that. I mean, it's a great weekend with the Boise State game on Friday night, there's not much, there's no big pressing activity going on today so it would be a great time to get out, look at a few homes, enjoy the Fall colors, enjoy the weather and just enjoy the weekend. 933-7777 that is the phone number to call, or coregrouprealty.com and Thom, we mentioned the Coming Soon tab, there's the Featured Tab, but there's a lot of different things listed on there.
Thom: Oh yeah, we have a little bit about us, obviously we have a whole lot of agents here that you can kind of go through and peruse their Bios you know when you're out there looking for an agent you want to make sure that you're finding one that matches your personality, matches your fit and stuff so, all of our agents are on that site kind of a little bit of description of each of them. If you're out there interviewing agents highly recommend looking at that. We have our vendors list, we have our preferred vendors, people that we trust, that we've worked with in the past, have good feedback from our clients and so forth. All listed on the Service Providers section of the website. So, if you're needing anything from a handyman up to, we just added on actually a new handyman D & B Remodeling. Great guy, does a great job very affordable. We're excited to have in on board as one of our vendors. As well as All My Sons moving company.
Dave: Nothing worse than moving.
Thom: Oh my gosh, yes. Packing up all those boxes into a Uhaul and trying to organize the Uhaul it's like a little puzzle trying to get all the boxes in there lined up and all of your furniture so that you're not destroying anything.
Dave: Let's be honest, maybe it's the older I get, but ... my first time I moved out, it all went in the back of a pickup. I didn't have any little tiny Uhaul move me. If I had to move today, I'd have to call All My Sons because I'm not doing that. It's as simple as that.
Thom: That's how I feel too!
Dave: Coregrouprealty.com is the website where you can find all that information, find out more about Thom, he is the broker, designated broker and co-owner of CORE Group Realty. We'll continue speaking to the providers with Michelle Guth and Diversified Mortgage. Find out what's happening in the finance world as we continue it's the Idaho Real Estate Buzz on 580 KIDO.
Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnett along with Thom Dallman and Michelle Guth joins us once again with Diversified Mortgage, Equal Opportunity Lender. Michelle, welcome to the Idaho Real Estate Buzz.
Michelle: Good day gentlemen.
Dave: You know, we were talking over the past few weeks about reverse mortgages and the fact that it's advertised on TV all the time. You see William Devane on them as a spokesman and somebody I should really trust, an actor.
Michelle: Tom Sellick.
Dave: Why do we trust actors for anything? Nonetheless, they pitch it. It truly is a good product: talk to a local lender, talk to Michelle, talk to your folks, it's a great deal which leads me to ask the question because there's so many radio and TV ads for lenders that I can go online and get a screaming deal out there. Can we talk about that a little bit? Maybe we won't name names, but can we talk about those online, or the television advertised lenders that are out there?
Michelle: I would love to talk this!
Dave: So, you've seen the ads for "Looking to buy a house? Go to this website!" or "Call this 800 number and we'll get you a loan for less money than you'll ever pay anywhere else!" What is the fallacy of doing that or really not necessarily the fallacy, I'm sure that they work or they wouldn't be in business, but what are the pitfalls you might run into with that.
Michelle: Well one of the biggest benefits of working with a local lender is if you have that trusted advisor that you can go to and meet face to face, address your concern and questions and know that they're going to be there down the road, Diversified Mortgage, one of the things that I am most proud of, is we literally we call them the DMG Family because we want to be their resource for years to come. I am proud to say that many of my clients have referred their children and then their children have referred their friends, I mean it's an ongoing relationship and we want to be there to help them. For questions down the road whether it be a servicing question and so forth. You're not going to get that with an online lender, it's churn 'em and burn 'em. We definitely approach our business model that we are basing it off of a relationship not as a transactional-based item which online lender? It's literally get them in, get them out and you don't necessarily get the same skill set of an originator that you would if you went in and talked to a local lender who has gone through all the rigorous state lending requirements and so forth and typically have been in the business for many years.
Dave: So if I go on to the phone and go "1-800 loan me money right now!" Where is that phone call going? In all likelihood?
Michelle: Well it's probably just going to a call center somewhere on the East Coast, and several of those people again do not necessarily have the skill set. Now that is not to say that some of them don't, but many cases they're a call center with people that are newly licensed that have the ability of taking a standard application but don't necessarily have the knowledge and product experience to properly educate the consumer. It's literally the get them in, get them in to the loan, and then ship it off to a processing center who is going to do the loan from there. So, you're not necessarily working in depth with that specific loan officer. It's, again, it's a numbers game. I can't understand why anybody would want to trust their biggest investment in their life to somebody on a 1-800 number that if there's a problem, they can't walk in to the door and say "Hey, I need your help." Well, good luck getting them on the phone!
Dave: You've seen problems with this Thom?
Thom: Yeah, yeah. I actually, I would honestly say that probably a good 8 out of 10 complaints that I hear from buyers that are going through the process and when they run in to issues with the lender it always ends up being one of these fly by the seat of your pants lenders, online lenders or what not that they're having issues with because of that. Availability; they're usually not available on the weekends, they're not available in the evenings to answer questions, you know a lot of times the closings get delayed because the paperwork has to be sent out of state and it kind of delays the process and so we get a lot of closings that are delayed because of them. I would say every time I get a complaint, my first though is usually "Who's the lender? Are they local or are they out of state?" And they usually are out of state or online.
Dave: So, for you as a real estate agent as the broker here, the designated broker at CORE Group, it's a comfort for you to be able to know if something's not going right, sometimes things don't go right, you can pick up the phone, call Michelle and say "Hey! What's the deal?" and you get an answer.
Thom: Exactly, and you know what the really nice thing about Michelle is and one of the things that we just love about our relationship is even when a loan is kind of going south with a client that we can't get a hold of their lender, I can usually reach out to Michelle and she will help us kind of guide us with some directions and some answers for the clients even though it's not her loan and she's not processing it. She is always willing and able to help no matter what the situation is. I love that about Michelle and the team over there and that they can give us that guidance even though the loan's not with them necessarily but the fact that they're there and they're present and able to talk to everybody is a huge factor when you're making the biggest choice of your life. You need to make sure that you're able, like Michelle said, to sit down, look them in the eye and say "What's the real factor? What's really going on with this loan? What are the costs of me getting this loan" and stuff. It's so important to be able to sit across from someone and have that conversation.
Dave: Do the online lenders just kind of put you in a little box and "Here's your loan, here's your that." I know in our conversations that we have every week that the one thing I really have learned, is there are so many different kinds of loans. There are so many different programs out there that you can tailor make it. Do they just kind of one-size fits all as opposed to you as a local lender trying to tailor make that loan?
Michelle: Well one of the downsides is many times they don't have access to our state bond program for example which we've touched on many times. It's one of the best programs on the market that offers down payment assistance to our consumers and they don't necessarily have to be first-time homebuyers. So that is the program that very few online lenders are going to have any ability or access to. So, in that regard, yes, there's good potential you have not been given the full product offering of what's available out there to the consumer. And on Thom's point, he brought up a good point with regards to having availability. So I've seen some of these approval letters that they get, and they will do a general approval letter that shows their approval limit. So, for example, if you had a client that was approved for $200,000 their letter says they are approved for $200,000. The problem with that as Thom would attest to, is if he is out negotiating on a house for $185,000, they don't want to necessarily show that they can go up to $200,000 on price. So, we do customize our letters to match that of the offer. And then in the event of a counter-offer we can update the letter accordingly.
Dave: Well and another thing I know you do and Molly was in talking about this one time as well as you that for me to be approved for $200,000 that's one thing. For me to make that house payment every month might be a whole other thing. I know your folks will sit down and say "OK let's look at your other expenses that aren't included in here to make sure that you can afford this house payment."
Michelle: That's a great point, and we do quite a bit on education and we do take the approach "What are you comfortable with?" versus "What can you afford?" and in many cases, you're right, they're going to go to the online lender, they're going to run the numbers and say "This is your max approval limit." Well it's not necessarily going to be in the best interest of the client and we want to make sure they do have a clear understanding of budget. Are they coming from an apartment for example where the utilities were covered in their rent? We're asking the questions "Are you factoring the utilities in to your budget to make sure that this is going to be a comfortable payment for you once you close on the loan."
Dave: Your child care, your potential child care that might be coming which anyone paying child care knows, it's expensive!
Michelle: There's all kinds of factors that should be looked at. And I think another good point to bring up is one of the big lenders out there which I'm sure everyone has seen the ad; I will not mention names as you said. They talk about this super fast loan. The funny thing is, it's not really any different than what most lenders have to offer, it's an online application which we have the ability to do, we have secure links which you can upload your paperwork to, but again you're going to have the benefit of knowing when you get to Idaho state, you're transferring from out of state and we have to do everything over the phone and the internet in the beginning. When they get here, I can't tell you how many of my clients have come in and said "OK, I am coming in to see you as soon as I get up there" and they come by the office and meet the staff because they've had the opportunity to talk to all of my team. We build such a rapport that again, we're going to be there for the long term, it's not going to be get them in, get them out. We do build that relationship even if it is an online application.
Dave: Talking to Michelle Guth with Diversified Mortgage. Michelle, if somebody wants to talk to you and set up an appointment, where do they call? Where do they go?
Michelle: You can give us a call at 853-7878 or visit our website which is dmgloans.com!
Dave: So, what have we learned today? That not necessarily do you get what you think you're getting when you go online. I don't know, it just bothers me, maybe I'm just old school, but not doing business with somebody that I can shake their hand, talk to, and reach on the phone. It just bothers me to do that. Especially, we're talking about the biggest financial transaction that most of us will ever make in our life.
Thom: Biggest investment you can have, why would you trust that to just anybody online?
Dave: The ad that I saw on TV that I saw in the middle of a late-night TV show, seriously? Let's be honest. Now, you may have had a great experience with an online lender, and good for you. But for me, I want somebody I can shake their land and know that they have my best interest because you know what? The bottom line for both of you guys, for Diversified and for CORE Group I'll say this, you don't just want my business, you want my business again, or my family’s business. That's how small businesses succeed. You don't have to say it, I'll say it for you, you want my business to return. I guarantee you if you're 5 years from now looking to buy a home, you will not talk to Jeb on the phone again, you'll get somebody else who's there. We just appreciate you guys and what you offer to the Idaho economy, the jobs of people that you employee here. That's a big deal.
Michelle: Absolutely, well said, thank you Dave.
Dave: That is a big deal. We'll continue on the other side again, Michelle phone number if somebody wants to talk to you about a loan or about the loan process?
Dave: We will continue, this is the Idaho Real Estate Buzz on 580 KIDO.
Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnett along with Thom Dallman of CORE Group Realty. Coregrouprealty.com, 933-7777 the phone number for you to call. You know Thom we talk about buying and selling a home and some people may not be in a position to buy or sell a home but there's a lot you can do to make your home that you're currently in feel new.
Thom: Oh, heck yeah! It's an interesting subject because we do have an agent that is going through an extensive remodel of her home right now. I just listen to her every day talk about the headaches, they've gutted out their kitchen and are moving cabinets around, not having a stove for a couple weeks while they're reconfiguring and stuff like that.
Dave: Is she married?
Dave: I will say this, having been through this before. If you are planning on doing a remodel and maybe you might want to call CORE Group and talk to them a little bit about it, you need to be prepared. I was not prepared when we ... and I think the kitchen's probably the hardest thing to remodel. Because that simple going in and throwing something in the microwave and heating it up or going in and starting that pot of coffee ...
Thom: It's hard to do when you've got your kitchen ripped up and you have no counter tops to put that stuff.
Dave: And it is something to think about, but the end results if you do a remodel on your home, could be absolutely spectacular.
Thom: Can be, yes. Make sure you are doing ... we've talked about this in past segments, you're doing the right updates and the right upgrades for your subdivision or your area that you live in to make sure you're staying competitive with your surrounding homes and not overdoing it and putting too much into it.
Dave: Suddenly you're living in the Taj Mahal, but really you're on skid row. It's not probably the way to improve the value of the neighborhood. But what are some of those simple things that people can do?
Thom: Oh sure! Gosh there are so many different little things that you can do. One of my favorite things that I always tell people is to do an accent wall. Go into a room, just paint a nice accent wall a nice neutral color or just something that just really brings out some character in the walls. Faux finishes are coming back around so those wallpapers. It's really kind of interesting to see the different wallpaper techniques and stuff like that. So, making an accent wall in a room can totally change the feel of it completely and totally feel like a brand new room.
Dave: So you can go to Home Depot non-paid sponsor by the way. So you can go down to the Depot and pick up a gallon of paint for $20 and totally change the look and feel of your home.
Thom: Yes, total change of feel just by one little accent wall.
Dave: The price you're going to pay for a pizza, you could be living in something that feels brand new. And it is something you can do yourself.
Thom: Oh, for sure. Easy, easy to roll on some paint.
Dave: Now I will say this, carpeting makes a big difference. Now I say that because my wife and I, had this extra bedroom this fourth bedroom that had just started collecting stuff. So we went and threw all the stuff out and went to the landfill and got rid of a bunch of stuff, and all's we did was we put a new coat of paint down and put new carpeting down. And the room was like a 12x11 so we went down and bought a roll at a local place. Paid $200 for this roll and it's like a brand new room.
Thom: There you go, as easy as that! And a lot of people just kind of assume that if you're going to replace carpet and replace flooring that it gets super expensive which it can, depending on what you pick. But there are some really good inexpensive options out there that if you're just doing one room at a time, can really spruce up your house with minimal costs.
Dave: And it really makes you feel good about it. I walked into the room earlier this week and I told my wife, I said "It feels like the house was brand new, when we first built the house." That difference of new carpeting versus old carpeting, it's huge. It doesn't necessarily have to cost an arm and a leg.
Thom: One of the other things you can do too if you wanted to, they've got some great light fixtures out there too. If you wanted to just go in and replace a couple light fixtures, it changes the ambiance of the room. Put in some fluorescent lightbulbs to brighten it can totally change the feel of the room with just a light fixture hanging from the ceiling in the middle of the room may not be something that you necessarily pay attention to but once you change it out, you can definitely feel the update to the room by doing that.
Dave: And if you're not handy, get somebody to help you, but if you're handy, you can do that again yourself. Just make sure you have the power off. Black wires go to black wires, white wires go to white and make sure it's grounded.
Thom: I highly recommend your electrician is doing that part!
Dave: But it's really not hard to do and really not all that expensive either.
Thom: No, not at all.
Dave: In fact, I think a lot of homes, you get into homes that aren't custom built homes but you get in there and they have a generic light fixture. A lot of generic fixtures so that if you wind up going and putting something new in, it really makes it look more like a custom home.
Thom: Exactly, I mean that's exactly what custom homes do. They're picking, you get to pick your light fixtures and put in not just the mass market light fixtures that most homes have but definitely great options.
Dave: So, we have paint, we have carpeting, we have light fixtures.
Thom: Going a little bit further into the kitchen. Doing a backsplash, doing a brand new back splash in your kitchen can completely ... you don't have to go and change your countertops, you don't have to go and get new cabinets, just go in and do a new backsplash! Completely change the feel and the look of your kitchen with just a backsplash. There are some really inexpensive and really great tiles out there and some really amazing higher end ones as well that do crazy different things like metal pieces in them, and stuff like that. That's a big trend right now is to add metal into the back splash in your kitchen. So yeah just doing a quick little change of that. On the other side of that is the cabinets. You don't have to replace cabinets, they have great products right now for painting cabinets. It's really becoming a big trend now too to paint cabinets and have a brand new look in your kitchen with maybe darker or lighter or doing a white wash on the cabinets. Another inexpensive, like I said, a gallon of paint, of the cabinet paint to get the cabinets changed. One of my favorite ways of changing the feel of a room, and we do this quite often especially when you have kind of a darker room, is doing the big stand up mirrors against the wall. That not only the mirrors, you hear that they make you feel like the room is more open, gives it kind of that dimensional feel to it that there's more dimension to it but putting it opposite a window will help to disperse the sunlight that comes through the window throughout the room so it helps immensely to brighten up a darker room and stuff like that.
Dave: And it's kind of fun to go out and shop for that mirror for the room and find the right mirror and the right place.
Thom: I'm a big fan of mirrors, if you walk through CORE Group Realty the office here, or at my home, I have mirrors kind of everywhere, propped up here, propped up there, it's not a vain thing, I don't look at myself in them but I just like the way that it makes the rooms feel more dimensional.
Dave: And bigger, they just feel bigger. In fact, it's kind of a trick on TV studios when you see a live show and the audience looks huge it's because along the back they have mirrors. They have reflective walls up there that makes the studio audience and the whole studio look bigger!
Thom: Look bigger, yeah.
Dave: The same trick works with your home to make it look bigger as well. Another one for your bathroom, if you put mirrors up on some of the walls, if you have a small bathroom, you walk in and it's just a narrow bathroom, you can put mirrors up there ...
Thom: Yeah, it totally makes it feel bigger. Obviously, seeing the dimensions of the room expanded with the mirrors, definitely a great way to go. Another big trend too that we are seeing are the floating shelves. Floating bookshelves or just shelves to put up on walls.
Dave: How does that work?
Thom: It's a little bit of a system to get them attached to the wall sometimes but yeah, just think about putting those floating walls as a decorative piece, putting some books on it, putting your DVDs or what not, your DVD collection and just a great way to just expand a wall and just feel like there's a custom piece going on there. Stagger those shelves to make it artistic looking or what not. Some great options out there for changing a wall, just adding shelves.
Dave: Another thing that my sister did in her house. She had moved but she went through and got a bunch of new plants. She didn't have any plants but she went down and got plants for inside of the house and put plants around. It really changed the feel of the house by making it more ... it came alive! You know, suddenly there's living things in there. It really did make a difference in the feel of the house.
Thom: Doing something as simple as going down and getting yourself a nice little vase, going down to the local grocery store and getting a bouquet of flowers each week and having fresh flowers set in a room or disperse them throughout the house just freshens up, obviously the smell of the flowers freshens up the room, freshens up the house, makes it just feel like you're outdoors. That can definitely be a focus for making a house feel fresher.
Dave: A little of moments left in this segment.
Thom: Curtains! Curtains are a huge way to change a room. There are a lot of really great options out there for sheers, so you're still letting light into rooms without blocking them and stuff like that. Completely changes the mood of a room what your curtains are. Add some color to the room, add some throw pillows to your couch or your bed wherever you're putting these curtains. It really accentuates those accent colors throughout the room using sheers, using curtains, using great textures, overlapping those curtains and sheers is a great way to provide dimension in a room as well.
Dave: So really what we've come up with is just $20 up to several hundred dollars, ways of remaking rooms to make them feel new again or at least give them a new look ...
Thom: A fresh outlook!
Dave: That's exactly what it is! So, if you're not in a position to buy a new home or maybe you're getting ready to show your home. These are some ideas to help freshen up your look as well.
Thom: A couple helpful tips!
Dave: And by the way if you'd like to talk to one of the representatives who has gone through, we'll leave her nameless at this point but she's going through a remodel, they'd be happy to hook you up. All you gotta do is give CORE Group Realty a call and that is 933-7777. This is the Idaho Radio Buzz, I'm Dave Burnett, he is Thom Dallman, co-owner and designated broker of CORE Group Realty here on 580 KIDO.
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 to go to no matter what you're looking for, one of the service providers, if you're looking for information the Coming Soon homes that are coming up, you can find it all at core - that's "core" with a "c" coregrouprealty.com or call 933-7777 one of the helpful attendants will answer that phone and direct you to the service providers to get you the information that you are looking for. You know Thom, we're, I hate to say this, but we're winding down toward the end of the year.
Thom: Isn't it crazy? Only two months left.
Dave: I call it the slippery slope to the Super bowl because you hit Halloween, the next thing you know you're eating turkey and then oh my goodness it's Christmas, then New Year's, and then the Super bowl. But along in the middle of all that, is tax season.
Thom: Oh, lovely tax season, oh yes!
Dave: There are so many things involved with buying and selling a home, and that's why we recommend and I'll go off script here, just recommend, use a bona fide, good, qualified agent to help you with the sale of your home because they can help guide you through a lot of these, I wouldn't call them pitfalls, but just things that you don't think about.
Dave: Whether it's home owner exemption or whatever it may be.
Thom: There are all kinds of tax savings that come along with the purchase and sale of homes, tax benefits as well as some tax problems that you may run into when you sell your home and so forth.
Dave: You gave me a tax number during the break and I went "Ohhh, what's that?" I've heard of it before, I didn't know it by the number, but if you sell a home you only have a certain amount of time to deal with the money that you make on some of that.
Thom: Correct. If you sell a home that has a nice amount of equity, you get a lovely charge on that equity called Capitol Gains.
Dave: If you don't reinvest it.
Thom: Yeah if you don't reinvest it. If you're just going to take the money out. Typically the government wants to take their little portion on that gain that you've made on it and do what they do! But you have a couple of options to kind of defer that. One of those being a 1031 exchange where you can actually take that money, invest it in a like property and basically defer the taxes on that by purchasing a similar property.
Dave: 1031 I'm going to assume refers to the IRS form?
Thom: I believe it's the IRS code that falls along that line of tax deferment plan.
Dave: Check with your local tax agent.
Thom: Yeah talk to a tax, a CPA, talk to your CPA, talk to your accounts on that code as well as we have some great connections at some of the title companies that have 1031 exchange departments that specialize in making sure that you're doing all the proper paperwork, make sure that they're following the code to a T as far as deferring that on a 1031 exchange.
Dave: Walk me through this. Say I have my house up for sale with CORE Group Realty. You sell it, you wind up and I have a lot of equity in my house let's say suddenly I've got an extra $100,000 more than the house is worth but I don't really know what I want to do. If I want to rebuild, if I want to buy something new, if I want to downsize, walk me through what you should do.
Thom: Sure! The way that the 1031 exchange works is that if you decide to invest that, it has to be in a similar property so it has to be another land property, another land purchase whether it be a house on that purchase or what not. It has to be of like or greater value.
Dave: So if I'm downsizing, then I have a tax issue.
Thom: You have a little bit of a tax issue because you can still downsize but you're going to still get taxed on the difference of what you've got for your equity that you invest.
Dave: So in other words if I have $100,000 and you find me that dream home that I've always been looking for at $70,000 then I've got $30,000 I've got to explain.
Thom: Exactly, there are still some tax consequences when you downsize and so forth. On the other end of that, you could purchase two properties. Say you wanted to buy a rental property as an investment to get some income, so you can purchase investment properties as well. You have 45 days from the time of closing on your original property to identify those properties and identify what you want to invest in and get those under contract. So that is a really important time frame to remember and to count because anything past those 45 days automatically disqualifies it and you're paying your taxes.
Dave: Which, I might point out, we're looking at 50ish days until the end of 2016. So if you were to sell today and you're not going to reinvest in a home the clock is ticking.
Thom: Exactly. After that 45 days, you also actually have additional time to get that closed. So you have 45 days to get it under contract and to find the property that you're going to get, and to actually close in 135 days. So you definitely want to make sure you get your inspections and stuff within that 45 days so that you're not having to cancel a contract and go find a different property.
Dave: That wouldn't be good!
Thom: There's a lot of stuff that you need to do within that 45 days if you are going to try to defer those tax savings so it's really important to A, be sure before you get your house sold if you're going to do a 1031 exchange figure out the process, figure out what you need to do, figure out how you're going to reinvest what into what kind of property and so forth so that you're really utilizing that 45 days to identify those properties and get under contract.
Dave: Now, is there an exemption available, a one time exemption or any kind of ... or do I have to explain that money to the government?
Thom: There is the concept that as long as you've lived in the house for 2 years out of 5 and are selling the property, there is a Capitol Gains deferment on that. A CPA can again kind of explain that a little bit more. So that's why you'll see some investors will actually live in a home and fix it up in the 2 years before they actually get it on the market and sold so you can actually avoid some Capitol Gains that way too.
Dave: But again, check with your tax accountant, make sure you know with your CPA to make sure you're falling within the guidelines. And again, I come back to, work with a real estate agent, someone like Thom or somebody who's credible who can help walk you through that and explain "Here's what's going on" and maybe you can do a 1031 but check with your tax accountant.
Thom: And we can give you guidance for good options with people to talk to, like I said, either CPAs or title companies can help you walk through some of these processes as well and kind of explain that depending on which part of the title company you talk to.
Dave: And again, we come back down to this when you think about it. For the average person like you and me, this is the biggest financial transaction you'll probably ever make in your life. I mean, so, most of us aren't multi-millionaires so if we're dealing with $200,000 worth of money, that's a big deal.
Thom: That's a huge chunk of change to be nonchalant about. Usually you want to make sure that you do have those, like I've said, those trusted advisers, those people who can guide you to the right source, the right decision making for that money and what's best for you. What's best for your family, what's best for future gains.
Dave: Is this something that you've got a blog on your website?
Thom: I think so, yes!
Dave: I'm kind of forcing your hand!
Thom: Yeah no, I think this is a great one to do a blog on. We haven't done a blog on a 1031 exchange in a long time so I definitely think this is going to be showing up here in the next week or two on the blog site of coregrouprealty.com.
Dave: Yet another thing you can find on the website!
Thom: Another great resource.
Dave: Some of the blogs that you've done in the past you know, how to take care of your home ...
Thom: Maintenance ideas.
Dave: I mean, there's all kinds of stuff on there.
Thom: Exactly, as we go into seasons and stuff like that, we like to put posts on there about the coming attractions in town so it's a great resource to go to if you're thinking about going out with the family and doing something this weekend. Check out what's happening, we try to post the events and stuff like that.
Dave: I'll be honest with you, I like the virtual tours you can do on the homes. Some of them have invested in where you can actually go through the home, look through the home, look up, look down. I get fascinated by that. Coregrouprealty.com that is the website where you can go to to get answers about CORE Group Realty. And Thom, again, I like pointing this out because every time we talk to somebody about this show, they always say "I like the fact that they say to interview the agent and the company and make sure it's a good fit instead of just trying to rope you in and sign a deal."
Thom: Yeah, I think it's a huge benefit for you to once again, trusted adviser. This is the person that is going to help you with one of your biggest investments it's gotta be someone that you trust and believe in and you need to interview them and make sure they are a fit for you that they get you, that the expectations that you have for them as an agent are set, and that you understand their expectations as a home buyer or seller for you as well. Make sure that your philosophies match up.
Dave: If you're looking to buy or to sell, either way, they have agents really specializing in the selling and the buying there at CORE Group Realty. Come by, talk to the folks here, easy to find here on Emerald just a block up from what is that, Milwaukee?
Thom: Milwaukee, yep!
Dave: It's just a block West of Milwaukee and the Towne Square Mall. You can stop in Monday through Friday, and what are your hours?
Thom: 8-5 Monday through Friday so we always have an agent on duty here there is always someone standing by ready to help anyone that comes in.
Dave: And if you're busy 8-5 you can call 933-7777 and the personal care attendant will be happy to set up an interview and a time for you to sit down on off hours with one of the folks here from CORE Group Realty. Or you can always go to coregrouprealty.com, that is the website to check out for all things real estate and the reason why we do the Idaho Real Estate Buzz is to give you knowledge, power, and information as you go forward as we plunge into Winter.
Thom: Yes, here we come.
Dave: It's not far out. Thom Dallman, thank you so much, this is the Idaho Real Estate Buzz 2:00 every Saturday we do it here at 580 KIDO and of course you can always catch it online, we have the shows podcast for you at coregrouprealty.com
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