Today on the Buzz Dave and Thom will do their regular update on our latest listings and listings that we have coming soon. Dave will be talking with Michelle Guth of Diversified Mortgage, here to bring you information about loan limits, and changes to conventional financing. And to wrap things up, listen in as Thom and Dave discuss acreage property, subdividing, and purchasing investment land. We have a great show for you, don't miss it!
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 to go to and of course 933-7777 that is the phone number to call as we go into the Idaho Real Estate Buzz. Thom, it's all about real estate.
Thom: Everything you can imagine real estate, we'll be talking about.
Dave: And not just selling homes, because that's easy. You do that as it is, but as we've talked about before, it's a chance to empower you the purchaser or the seller with knowledge and information so that you can get a good deal and get the deal that you're looking for and that's really what it's all about. The website, tremendous help in doing that.
Thom: All kinds of information there for anybody who is looking for anything they want. They can find it there.
Dave: And if you're listening and you're thinking "Thom's got a cold."
Thom: I do.
Dave: Don't feel sorry for him, he picked up that cold on the airplane on the way back from Mexico.
Thom: Yes, don't feel too bad!
Dave: So, he's got a little bit of a frog in his throat so we'll work our way through it today. On the website at coregrouprealty.com one of the tabs that I love, one of the sections you can go to is the Coming Soon’s, a chance to sneak peek property.
Thom: Exactly, yeah, that's our section to give a little bit of a preview into what's going to be coming on the market pretty soon so it's a great way to kind of get the advanced notice, beat the competition out there to the home with our inventory still so low. Every advantage that you can get on the market is a good one. It's definitely a good place to go check out and let us know if there's something you see that you want to get into before the rest of the community gets to see it on the MLS.
Dave: What do you have coming soon?
Thom: We are really excited about this property and this actually is going in under two different categories because it's an agricultural property as well as a residential with land on it with acreage. This is a beautiful 41.57-acre property. It's at 18840 W. Goodson Road in Caldwell. It's got a beautiful 4,630 square foot home on it with 4 bedrooms, 4 baths. This is coming on at $795,000.
Dave: But again, we're talking 41 acres!
Thom: We're talking about 41 acres and a 4,630-square foot home with 4 bedrooms and 4 baths. Huge home, huge property. It's currently got cattle on it that they're running currently set up for if you have cattle and you want to bring some cattle in. They have corrals, they have barns, it's a farm ranch use so you can convert it if you don't want to do cattle and so forth. I don't even know where to begin with all of the different things that this provides. Obviously, it's got beautiful views where it's at, it's got rolling hills all around it. The house itself is actually a single level with some below grade in it. It's got a 3-car garage, it was built in 2003. It's got granite counter tops, breakfast bar, kitchen island, really just a beautiful home of course with all that land and plenty of space for RV parking. It has got central vacuum and that equipment, it's got a covered patio deck on the back ...
Dave: Let me ask you a question, because you used a term and we've talked about it before but this term bothers me so much. You said "Below grade."
Thom: Below grade, yes.
Dave: That doesn't mean "bad." That just means underground like basement?
Thom: Yes, it's got basement space, it's got a finished basement.
Dave: I hate that term. Some of the house is "below grade." Makes it sound like it's a problem.
Thom: Yeah it’s a term that's commonly used when you have those walk out daylight basement and just basement space in general. It's considered "below grade" and it's just a common term that's used but doesn't mean that it's "below grade" with the rest of the grading.
Dave: We just need to come up with a different term for that! Let's talk a little bit about that 41 acres. I'm trying to wrap my head around, how much land is that?
Thom: It's a lot.
Dave: I mean, obviously if you're not running cattle on it. But I mean, an acre is, I mean if you get a lot that has an acre on it, that's enough to keep a horse on.
Thom: Yeah, usually, depending on the city ordinances of where you're living, usually you can have one animal per acre within city limits. One large animal I should say and it kind of breaks down, you can have pigs, you can have two pigs, and so forth like that, depending on once again, city ordinances.
Dave: Check with your local ordinances! With 41 acres, I mean that's a decent sized farm if you wanted to farm.
Thom: Oh yeah, that's a pretty common size for some good agricultural possibilities into it.
Dave: How often do you come across acreage like this with a nice property?
Thom: I would say not very often, they don't pop up as frequently because people do tend to ... it's their business. People buy them for the long term and tend to work the land and work their cattle or work their farm for a while.
Dave: And it's passed through family a lot of the times. I was just trying to think, I am trying to think of the last time we had this much acreage with a nice home that we've talked about on the show.
Thom: Yeah, we haven't had one in a while. It's definitely not a common one especially with the house. We've recently listed, or are in the works of trying to get a listing that is an acreage parcel. 20-some acres out in Emmett but it has no house on it, it's just land!
Dave: OK so here's the deal. This is if it's something you're really interested in or know someone, let them know right away because this is on the Coming Soon tab, it has not been released to the general public yet it's only known to CORE Group Realty and the folks who are going on the web and your agents there.
Thom: And the listeners!
Dave; If you're a listener, you now know you can go to coregrouprealty.com. 41 acres over 4,000 square feet, this house out in Caldwell area. What's the address once again if somebody wants to hit Google maps?
Thom: Sure, it's 18840 W. Goodson Road in Caldwell. 83607.
Dave: So that's on the Coming Soons. So, what would be nice is, if one of the listeners of this show who is interested, or one of the family were to jump on there and get it bought before it even gets posted, that would be awesome. Which does happen!
Thom: Exactly, which does happen! People are like in that transition thinking "Oh, it's the holidays, no one's really selling or buying homes right now." But we just had a listing that went on this last weekend that sold immediately.
Dave: So it's not on the Coming Soon!
Thom: No, we didn't get a chance to get it into the Coming Soons. 1356 Raptor Drive in Middleton just sold I think it was within 3 days that it sold.
Dave: That had to have happy homeowners!
Thom: Oh yeah! They were happy they got asking price and got it sold quickly. So it's happening out there!
Dave: So if you're looking to sell a home, of course we talked the last couple weeks with a couple of your listing agents as well. If you're looking to sell a home, they get it priced right, the right home, they're gone. Boom, it's gone.
Dave: I'm intrigued by that with the 41 acres because we just don't hear of that all that happen.
Thom: Yeah they don't pop up very often. So you're really going to want to jump on it especially if you're looking for that, so.
Dave: Get a look at it, at coregrouprealty.com. What are some of the featured homes that you have listed?
Thom: I have a featured home right now that just came on the market at 6970 South Southdale Avenue. We've kind of talked about this one a little bit, it's been on the Coming Soons for a little while, took a little while to get it up and running and ready for showings. They went through and they stained the fence on the outside of the house, they've got a custom kitchen in there with tile backsplashes, a large open family room, it's a 3 bedroom 1 bath at 1,456 square feet on .41 of an acre so it's a nice land size for being in Boise city limits. This one is at Fox Meadow Sub out by the 5 Mile/Lake Hazel area so a really nice area. Beautiful home, 3 bedroom 1 bath 1,456 square feet at $160,000 with RV parking, storage shed in the back, irrigation on it.
Dave: And the street it's on again?
Thom: It's Southdale Avenue.
Dave: So if you're looking at the website, that's not on the Coming Soon, that's on the Featured Listings so just go look for the Southdale property so you can see photos of that, it's now up ...
Thom: It's ready to go and now up for anybody who wants to go check it out and write us an offer on it!
Dave: Which is good that it is happening because a lot of people think "Well, Christmas, it's December, nobody's really looking ..." Not true!
Thom: Not true, we've written a lot of offers the last two weeks after coming back from Mexico I was very proud of my agents and the number of contracts that they wrote while I was away. There's a lot of buyers out there still looking so if you're wanting to list your home, still a great time to get it listed, to get the process going. If you're wanting to wait until after the Christmas holiday, now is really the time to just get in to the process. Keep your list of to-do items from your listing agent that will get it ready so you can hit the market strong in January.
Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnett. He is Thom Dallman who is the co-owner and designated broker of CORE Group Realty and the website again coregrouprealty.com and that is Core with a "C” just like you'd expect it to be, or call 933-7777 they have some folks who will help guide you through that in case you're thinking now where was that? How do I find that on the web? Some folks that will answer the phone right now that can guide you through that to see that property. Might be a good Saturday drive, could drive by Caldwell and take a look at that acreage out there. We're going to continue on the other side with the Idaho Real Estate Buzz we'll talk to Michelle Guth with Diversified Mortgage find out what's happening in the lending world and more to come for you. It's the Idaho Real Estate Buzz I'm Dave Burnett with Thom Dallman, here on 580 KIDO.'
Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnett and Michelle Guth with Diversified Mortgage joins us again as she does every week to talk about all things lending, loans, and money, which is what makes the deal go round. Welcome back and we're talking about loan limits and the fact that something's changing with how much money you can borrow.
Michelle: That is correct, so received some exciting news. We've seen the same loan limits for several years and we haven't seen any increase by Fannie Mae or HUD with respect to how much a person can borrow to stay within the program requirements. As of January 1, we are going to see the conventional financing is going to go from a limit of $417,000 that you can borrow all the way up to $424,100 so we're getting a $7,100 increase in our loan limits.
Thom: Wow, that's nice.
Dave: Let me ask an obvious question here, at least obvious to me. There's so many million dollar homes out there. If I'm buying a million dollar home, what kind of loan do I get?
Michelle: It's jumbo financing so instead of being conforming ... so what the loan limit refers to is that maximum amount you can borrow. So once you go over that new limit of $424,100, you're in jumbo pricing. There is still financing available but it has typically a little more restrictive guidelines in many cases, potentially higher down payments and so forth once you get into that jumbo arena.
Dave; OK but it's not unusual to find a home for half a million dollars, while it's an extravagant home it's not out of site. So we're talking people typically will have equity going into a loan like that so that increase is a big deal.
Michelle: It does, it makes a big difference. So if they sold a home and they have a certain amount of equity, that allows them to get in with the lesser down payment without having to potentially come up with more money just to avoid that jumbo pricing and program criteria.
Dave: So how important is this to like CORE Group Realty, to Thom and his group that these extra funds are there, is there a bigger benefit for the seller or is it for the buyer or for both? How does that work?
Michelle: It's for both, and I think it's going to open up the avenue for people who are in those price points you know $500,00. $400-$500,000 if a person only has 5% down they can go to a little higher price point and stay within those lending limits. Same thing if they have a certain amount of equity to work with they can push their price point up a little bit with even say 20% down and still stay within those loan limits.
Thom: Exactly which is nice for the projection that they're still looking like home prices will continue to rise a little bit throughout 2017 so it's nice to have that little bit more leeway for people to get a little bit more financing for the house price increases that may happen.
Dave: What is it, this is coming out of left field, but what is the average price for a home in the Treasure Valley? Do we have an average? If would somebody would say "What's a bulls eye average" of a home?
Thom: The average for Ada County is at $250,000 around that $250,000 price range is the average current price range that they talk about. Running around that.
Dave: Well this really makes it ... more so than for Idaho but for California where a half a million dollar home is nothing. For other parts of the country this is really a big deal to see an increase is it not?
Michelle: It is, without a doubt. And I think it's a sign of the times that the median home price is going up nationally. I mean the housing market is doing extremely well so it's still an incredible time to buy and this is going to give us a little more leverage for people that are shopping in the higher price points. Now the nice thing is with Thom mentioning the average median home price in our market is less than the confirming limit so the other good news is HUD which is Housing and Urban Development which offers our FHA program, they also have increased the loan limit for our market for Idaho. So Ada county, Canyon county for example, previously the max you could borrow on FHA was $271,050 and now it's up to $275,665. So again, for an over $4,600 increase if they can borrow on an FHA loan. And where I think that comes in a huge help for some consumers is we still have some clients that are still getting back into the housing market after having lost a home to short sale foreclosure for example. So on a foreclosure for example you cannot get a conventional loan for 7 years so they then have to look at a program such as FHA which is more lenient with a foreclosure which only requires 3 years since the trustee deed had been transferred. SO the nice thing is for those individuals where maybe they do have a decent down payment but they can't get a conventional loan, they can still do FHA financing and that helps them get into that higher price point without having to put as much down to stay within those FHA loan limits.
Dave: Michelle Guth with Diversified Mortgage with us again today. Let me ask you this question now we've touched on this in the past, now they're talking about the price of homes increasing when we saw the housing bubble and everything burst and everything fell apart. Things were priced ridiculous. I mean, I remember getting my tax statement for my home in Eagle and it's like "Are you kidding me?" It is based on more solid ground this time around?
Michelle: Oh absolutely. In my opinion I think a lot of the primary reasons for the housing crisis was the loan programs that were able at that time. We talked about where it's got a bit more stringent but now I think realistically it's pretty reasonable with what the expectations are to obtain a mortgage. Back then, there were no expectations. You literally had to have a credit score and that's about it. You didn't necessarily have to have a job. So as a result, we had people purchasing a homes that were well within excess of what they could comfortably afford in the long term. Thinking there was going to be added equity, thinking they could just sell it and make a profit and then when it crashed we had people that had maybe bought multiple rental properties with nothing down and negative rents and I mean there was a multitude of things that caused the housing crisis.
Dave: Thom let me ask you this. When Michelle comes to you with this information with the increase in the amount of money that somebody could borrow on these loans, this is something that you immediately share with your agents so that they're aware of that?
Thom: Oh yeah! I'm planning on taking this back and making sure everybody knows about this. It definitely will affect their communication with buyers so they can communicate that with them and say "You might be able to afford a little bit more with the new limits" and they might be able to go up a little bit higher. This is definitely information that we will share and part of the relationship with Michelle and diversified is this information going back and forth and being able to be educated and that's one of our main focuses, one of our CORE values is seeking knowledge and knowing what the market place is doing and being able to share that with our buyers.
Dave; Now these two loans again are what kind of loans?
Michelle: One is a Conventional Conforming Loan product and the other one is an FHA product.
Dave: So with the increase of limits are there any other requirements involved with it or is it just that homes are worth more now so we're going to increase it?
Michelle: Exactly so they're just giving a little more latitude with maximum lending limits. Now we have not heard on our other two programs VA and RD, also known as rural development RSDA they have not made any announcements yet to change their loan limits but I'm hoping that they as well will follow suit but we have not heard any updates with respect to those two programs as of yet.
Dave: Is that pretty typical that they just all kind of walk in step?
Michelle: For VA, VA has followed the conforming limits for years so I would be surprised if we didn't see VA follow suit eventually but it's hard to say, we have not heard anything as of yet.
Dave: So if somebody is interested in finding out more about these kinds of loans, how do they get a hold of you?
Michelle: Give us a call at the office, myself or one of my team members would love to visit with you. We can be reached at 853-7878 and if it's more convenient, I encourage you to even visit our website and that is dmgloans.com!
Dave: And as we go in to the holidays are your hours restricted or are you busy busy busy?
Michelle: They are not, we are busy busy busy. December's been a great month, we're going to hit the year with a bang so we're excited to start next year but yeah it's definitely not a slow time and we'll be working through the month so please give us a call.
Dave: Thom was talking about the misconception that well, it's December nothing's going on but talking about houses on the market 3 days gone, sold.
Michelle: I think a lot of it is people were all trying to buy homes in the Summer and there was a little bit of a shortage so a lot of people said "I'm just going to wait until things slow down a little bit." Well I think a lot of people had that same mindset and they're like "OK, there's still a lot of people out there shopping!" So it's still a great time to buy, get out there and keep an eye on the inventory.
Thom: Pretty much though.
Dave: And on average if I were to buy a home let's say I closed a deal today, how long does it take to get in to the home?
Michelle: It depends on the complexity of the person's file but typically 30 days is on average but with a holiday in December it could take a little bit longer but on the norm it's about 30 days.
Dave: Which isn't too bad at all.
Michelle: Not at all.
Dave: Michelle Guth with Diversified Mortgage again, one of the sponsors of this program and if you are looking for a loan, if you're looking to re-finance, if you're just looking for information, Michelle can do that. Of course, Diversified Mortgage is an equal opportunity lender and you can check that out ... in fact if you can't remember her website just go to coregrouprealty.com, thank you so much Michelle.
Michelle: No problem, thank you.
Dave: And thanks for the reminder of the Equal Opportunity Lender there. She gave me that panicked look!
Thom: "You haven't said it yet!"
Dave: Say it dummy, say it! We'll continue on the other side 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, 933-7777 is the phone number to call if you'd like more information about CORE Group Realty you can find it on the web or give them a call and the customer care agent will help take care of you and guide you through everything you want to know. Thom of course is the co-owner and designated broker of CORE Group Realty. You know Thom the first segment today we talked about some acreage out in Caldwell, 41 acres.
Thom: Beautiful home out there.
Dave: I've often wondered if you were to get, and I thought about this at home time, if I were to get a bunch of acreage, splitting that up into several homes and having family live on the property ...
Thom: Oh sure! Of course, you'd have to go through your planning and zoning to do all of the appropriate paperwork and make sure you've got it all broken up and stuff sure.
Dave: But it is, it brings to mind a conversation we've had before. We've never really talked about it much on this show before, but about Multi-generational living. Not necessarily in separate homes on the same property, sometimes within the same building.
Thom: Exactly, oh yeah. It's become more prevalent I guess in recent years just because of the increase in costs and so forth and college for students and costs of living for the elderly and so forth that multi-generational homes have actually increased again versus where they were say back in the 80s. There was a recent study done by PEW Research Center that talked about in the 80s it was roughly 12% of the homes that were purchased were multi-generational families. The homes that were being lived in were multi-generational whether it was adult kids moving back in with parents, whether it was the aging parents that have moved in with their kids for support and stuff, it's actually jumped up to about 19% in this day and age. Which, 19% doesn't sound like a huge number but when you compare it to the number of Americans, that's roughly about 60 million Americans that are living in multi-generational homes.
Dave: Well let's break this up a little bit because I feel you just really kind of identified it, it really kind of comes under two categories. Kids moving back in with mom, and moms and dads moving in with kids. In your dealings with CORE Group Realty and buying and selling homes, are you seeing some of that where people are looking for ... I guess let's start with moms and dads living with their kids as they get older.
Thom: I'd say that's the top of it, the most number of people that we see looking for those multi-generational homes are the ones that have elderly parents that they want to live with them because of the cost of elderly care in homes and the medical care that is a part of that. It is now becoming easier to just find a house that has a second master that you can then have your parents move in with you and have their own space and be able to function on their own without having to be stuck in a facility. Not that you're "stuck" In a facility, but ... it's a little bit better choice of living.
Dave: Well, we're living longer, I mean, that's a given, and really once parents retire for the most part they're healthier than they have in the past and they still have very active lifestyles but and I come back to this, I have a father-in-law that's 94 and we have told him and I would have no problem, he's a snow-birder so for half of the year he's in Arizona, I have no problem with that if he were to come back and live with us for the other half of the year. So when it comes to parents living with kids, are there two options as far as the traditional mother-in-law room which is kind of separate from the house, and then something built into the structure of the house?
Thom: Yeah! I mean, you see a variety of homes out there, there's even homes that have been built with whole separate almost apartment units if you will.
Dave: That traditional "mother-in-law" room.
Thom: Exactly, we had a buyer recently that was purchasing a home in Seguro Canyon that had a, I'm trying to think of the proper term for it ... it starts with a "c" ... it has separate living quarters basically above the garage so a separate area, basically a whole different apartment for a family member to live in so that's what they were purchasing it for was so their family member could stay in the apartment while the rest of the family lives in the house. I know that Heather Echeverria herself has mentioned they're building an apartment above their garage in their home so that their teenage daughter who is going to be going to BSU soon can have her own space and to save money instead of putting her in the dorms and stuff they're going to just built a separate apartment for her. Luckily Heather Echeverria is a custom home builder, she's a part of Innovative Custom Homes so they can build their own facilities.
Dave: I was going to mention, if somebody's interested in doing that, in building a home that Heather right here with Innovative Custom Homes part of CORE Group Realty would be a perfect person to talk to as far as what designs work, what doesn't work, and what they have.
Thom: Yeah and working with whatever lots size and dimensions because you have to make sure that you have the right size of land if it's a home that might have two masters in it or a separate apartment and stuff. The Parade of Homes last Spring, one of the homes that stood out specifically to me had a whole separate living quarters in it for a separate family member which was really nice for them to be able to get access and have their own separate living and not feel like they're not necessarily invade each other's space but still living together under the same room.
Dave: Living in a home where I have a college student who has moved back home, to save money while she's in college, it's expensive #1 to get out and to try to go to school full time, to try to work and try to pay for that, and then to try to pay for an apartment it is very expensive to do that. But I can say for us, we have a situation where we have a fourth bedroom that is off, has it's own bath suite, the only problem is it would be nice if she had her own little kitchen facilities so she can do her thing there. It is something that is not uncommon right now for perhaps someone's divorced trying to get back on their feet.
Thom: Yeah it's happening more and more.
Dave: People move back home with kids of their own so suddenly those empty nesters have a full nest again!
Thom: Exactly, and in some cases, the parents especially if it's like you mentioned kind of the divorced situation where it's a single parent now with their kids, moving in with their parents. Parents love that, because then they get to spoil those grandkids and kind of be there for the grandkids. Some parents. You know, some grandparents I should say!
Dave: But I mean we're kind of moving back to the past, I mean there was that time where kids lived on their family's land and it was given back in the days where you had a ranch where you had 20 acres kind of like I mentioned before where Bill, you go over there and build your house over there on the other side of the property. We're kind of moving back to the past with that.
Thom: A little bit yeah! If you think about going back to caveman times you know, if you follow the beliefs of back then, they lived in family units. Everybody living under one roof and under one cave if you will. We've kind of spread out and now we're kind of going back to that with the extended family units living together. I think it's always been kind of a part of our DNA and that's why we built homes and that's why we have our families in our homes with us is because we like to be in that bonding experience of being with other people like ourselves. But if you unfortunately grew up fighting with your brothers and sisters like I did ...
Dave: Another state would be a great idea! I'm not saying all of my family's in another state, but I'm just saying! It is something that is changing whether it's going back to the future or a changing dynamic up to 19% living in multi-generational homes. If you are looking for a home perhaps that is set up and ideal for you, for in-laws or for your parents to live with you, an elderly parent or maybe for kids in that situation and whether it's Innovative Custom Homes here that could do it for you or existing homes, you have agents and you have homes that would qualify for that.
Thom: Yeah! There's currently about 150 homes on the market that have what's common for two is the dual masters. It has two master bedrooms in there for that, for that situation. And roughly about 40 of them are under $400,000. So, affordable, there are several in the $200,000 range all the way up. The highest priced one of course is $3.5 Million so if you're in that market, we can definitely get you in to see that one. But yeah, there's options out there whether it's an existing home or whether it's a build job. Builders are aware that this is a need that has to be met. They're available.
Dave: Very good. Coregrouprealty.com, that is the website to go to if you kind of want to browse through that. Now is that something you could put in? What would you put in at CORE Group Realty, what would you put in that browser to bring up homes that have two masters.
Thom: I do believe it is under one of the criteria’s "special features" that says two master bedrooms.
Dave: OK so when you look at homes put in "two master bedrooms."
Dave: You can look at that on your own at your leisure at home this weekend at coregrouprealty.com or if you're having trouble getting to that just give a call to 933-7777 and the customer care agent will help walk you through that to find that or you can set up an appointment with an agent to look at some homes as well or go talk to Heather here at CORE Group Realty. Thom Dallman who is the co-owner, designated broker of CORE Group Realty. We'll continue on the other side here on our Saturday afternoon together here on 580 KIDO.
Dave: This is the Idaho Real Estate Buzz I'm Dave Burnett along with Thom Dallman who is the co-owner and the designated broker at CORE Group Realty. Coregrouprealty.com 933-7777. Call that number if you're interested in listing your home or perhaps finding out more about buying a home and Thom, of course you're always so quick to say: Come in, interview us, find out if it's the right fit.
Thom: Yeah, chat with us, make sure you're talking to multiple agents and really finding that right fit for you. That person that you know that you can trust, that you can feel at ease with because this is one of your biggest purchases, one of the biggest moments in your life, one of the biggest investments in your life and you need to make sure that you have someone that you know is going to help you through the process and not get you into any trouble.
Dave: CORE Group Realty of course you'll see their signs all over the Treasure Valley, it's a black sign with the name CORE Group, there's a sign right next to me here. It's a red CORE Group and a couple of ... oh I guess it's a house! It looks like it's diamond but it's in the shape of a house but look for their sign and you'll see that is a home they are proud to list. I think it's something your agents really do a good job of is getting the value of that home and getting it priced right because it is sure easy to get it priced wrong!
Thom: Oh yeah, it's so funny because we do, when we do lose a listing to another agent a lot of times it's because that agent has promised them a higher price and so we always keep an eye on those houses that happen like that and see that they sit on the market because whatever agent has said "Oh we'll get you $20,000" more on your house and then it sits on the market until they drop the price down to usually where we have said the price should be.
Dave: And typically if you see a house on the market for a long time no matter who's listing it, no matter who's listing it, it's not priced right.
Thom: Yeah, exactly. There's something to be said a little bit with the elections and the holidays there is a little bit of a slow down but yeah if it's priced right it should still sell, we have buyers out there actively looking for properties and stuff like that. So if it's sitting there with no showings for weeks on end then you definitely have a pricing issue on the property. We are very straightforward and honest with our clients. We don't try to buy the listing by promising higher prices, we try to be spot on with our pricing so that even if you do get an offer on a home that's priced a little too high, then you run into issues with appraisals during the process. You get an offer in, you go through the appraisal process, they can't find any comparable’s to justify that high of a price and so then you have some issues there where you either have to drop the price or someone has to come to the table with cash.
Dave: Coregrouprealty.com is the website 933-7777 to set that appointment or you can stop right by their offices here on Emerald just about a block and a half up from the Boise Town Square Mall so make sure to do that. Earlier in the show we were talking about a property that you have in Caldwell with 41 acres on it.
Thom: 41 acres, yep!
Dave: Which puts me to thinking and we've talked in the past about bare land and just going out and buying a lot or buying bare land.
Thom: There's a ton of it out there right now.
Dave: But I guess, when you think about it, unless you're specifically looking at "I need a lot to build a house on," there's a lot of different reasons for buying bare land.
Thom: Yeah, whether you're looking to farm or to ranch all the way to yeah you just want an acreage property to put your house on and kind of run a business out of it, there's multiple reasons why you'd want some land including bare land to just build a basic home on.
Dave: I've talked to people in the past though where they've bought lots for an investment.
Thom: Oh yeah?
Dave: Is that a good plan? Is that a bad plan? What is the trick to that?
Thom: I guess it would really kind of depend on what kind of investment you're looking for. If you're looking to hold it for a while and try to hope that something happens where a development comes in to the area, that takes a lot of research into knowing what the city is planning, how readily those plans can come about because there's plans that get submitted to the city for development in areas that can sit there for 10 years before it actually happens. You have to kind of weigh those out when you're looking at those development opportunities ‘and really do your research into what you're holding on to it for. A perfect example is we are working with a family, they're trying to sell a lot they bought a 20-acre parcel in an area that they thought was going to be booming, they bought it 6 years ago and unfortunately ...
Dave: It didn't boom!
Thom: It didn't boom, nothing's happened and they bought it ... I'm sorry it wasn't 6 years ago it was 11 years ago right at the height of the market and so now they're looking at this acreage property that's really not worth ... it's not even worth half of what they actually bought it for so they're struggling a little bit with that loss on the investment. Once again, it's going back to really looking at the area, making sure you know what's happening in that area and doing your due diligence and researching into it.
Dave: Well if somebody wants to maybe there's a subdivision and you know I'll invest in this lot and I'll hang on to it for 2 years and then sell it in the subdivision, that doesn't always work out.
Thom: Check your CC&Rs! Check with the Homeowner's Associations because a lot of those in subdivisions and building lots they have certain requirements that the home has to start being built within a certain time frame of that purchase of that lot. We tell people all the time that are looking at building lots and doing that same thing, holding on to them that they really need to make sure that they're looking into what the rules and regulations are of that subdivision to make sure that it is permitted to hold on to it that long. As well as county zoning and city zoning, there might be stipulations in planning and zoning that might now allow for that or building permits that might not last because building permits from my understanding do have an expiration on them as well if they're not used within a certain amount of time.
Dave: Is there a difference and I don't think it's something that CORE Group specializes in but you have access to through Multiple Listing. Is there a difference for a vacation sort of property or land up near Cascade or Donnelly or up in Garden Valley. Is there a difference in that kind of land?
Thom: Recreational land versus actual ..
Dave: Versus subdivision land in the town.
Thom: Yeah there's a differentiation, I'm trying to think off the top of my head how it's differentiated in MLS and I think it's more of just a classification on MLS but there is a definite concept for recreation versus even large parcels of land that 40 acres that we talked about. 40 acres here in the valley will probably be more for your farming and your agricultural where 30 acres up in the mountains that's going to be recreational. That's going to be for being able to take your tents up and go camping and your 5th wheels and what not.
Dave: If somebody has 40 acres in the mountains that they'd like to give me, I'd like to talk to them!
Thom: Yeah, right?
Dave: And maybe we should have held over Michelle Guth for this segment. When it comes to bare land and buying it, what is the loan process? What happens there?
Thom: Yeah there's not a lot of options. For loans there's really only from my understanding 2 kinds of loans that you can get. Personal loans through a credit union, or conventional loan with 20% down. Those are the only kind of loans that lend for purchasing vacant land without a home on it.
Dave: So your options really run out.
Thom: Yeah, it's cash, personal loan via a credit union, conventional loans with 20% down or if you happen to find someone that can do an owner-carry, the owner owns the property outright and will be willing to carry a loan for you so you can do an owner carry on them as well.
Dave: I think about land here in the valley, I've lived here since 1988 and I think about the land and people that have tried to, you know, guess ahead. I think about Fairview Avenue which now when you drive up Fairview Avenue from Boise to pretty much all the way Meridian and the end of Nampa, it's very different. I remember the day when Fairview and Eagle were right now where the Village of Meridian sits at was a dairy farm forever and the barn was set there with it's buildings forever now for that farmer I'm sure he came out very good in selling his land but it sat there a long time for sale.
Thom: Oh yeah I’m sure it was. Yeah there really is, I'm not sure there's an exact science to researching that development and growth and stuff like that. I know there are researchers out there and there's people that do that, to best determine with things like that. Once again just like any property that you buy, it's an investment, it's a risk. It's speculation, it's a hope that the economy continues to grow and that the city continues to grow. You really want to do your due diligence when you're looking for those kinds of investments.
Dave: You go back through history, you'll see. Pocatello is one that is not originally where it is supposed to be.
Thom: Oh really!
Dave: Yeah because somebody bought all the land up speculating that it would go up and the railroad moved the whole operation somewhere else. So history does repeat itself sometimes but obviously something that IS available for you to do if you're looking for bare land whether it's a lot to build a home on or it's an investment, again CORE Group Realty is a place you can come and talk about that.
Thom: Yeah! Come and see one of our agents or give us a call, we will happily get you set up so you're finding that proper property. Let us know what you're looking for we can help kind of point you and direct you to the right people to talk to. For example we just recently had some people that purchased a property that is a building lot it was a 1 acre property I believe. Now they're four months into it and they are want to start the building process. Come to find out the building permit that they were told that is on the property was actually associated with the building for a lot next door so they're now facing a $2,500 bill to actually get a new building permit on that lot and obviously for obvious reasons are kind of upset that they sellers misunderstood where their building permit was and stuff like that. That's where it comes in, we've always instructed our clients to make sure you're calling planning and zoning if you're buying a house to find out what the building permits are like how long they last for, what land they're issued to, do your due diligence in following up during your inspection time frame. A lot of people think a lot of times "Oh it's a building lot, I don't need to do an inspection!" That is so not true. You need to check the easements. We had another recent purchase where we encouraged the buyer to check with planning and zoning to find out what's happening with the land. He came back and found out that they had proposed plans to widen the street which was going to take 20 feet off the whole front of his acre .... or it was a quarter acre property. It was going to take 20 feet off of the whole front shortening that lot by ... that's a pretty substantial amount to take 20 feet off the front of a lot. He was very happy that he did that research and contacted planning and zoning and found that out.
Dave: Do your homework, simple as that. Thom Dallman, CORE Group Realty is the company 933-7777 the phone number. Coregrouprealty.com, we do this every Saturday afternoon and we invite you to join us again next week. It is the Idaho Real Estate Buzz on 580 KIDO.
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