Tune in as Dave and Thom talk about our latest listings and all that they feature, and for those who are not looking to buy or sell just yet Thom is giving tips, tricks, and ideas about how to make your current home feel new! Michell Guth of Diversified Mortgage joined us to discuss loan types and how greatly they can vary. We are here every week to provide you with the most current and up to date real estate information, enjoy!

Seg #1

Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnett along with Thom Dallman of CORE Group Realty, Thom is the designated broker and a co-owner of CORE Group Realty where we gather together to help you learn and get a little bit of knowledge about real estate. It's not just about selling homes, it's about empowering you to go out and make a wise financial decision because Thom, buying a house- biggest financial move that somebody like me that I'll ever make.

Thom: One of the biggest investments that people make in their lives for being their first home or buying their second home or buying any home.

Dave: I go back to when I bought my very first home back 150 years ago it was right next to Abraham Lincoln's house, I think we paid $36,000. It wasn't a very big home. I could spend more than that on a pickup right now, a used one.

Thom: Exactly.

Dave: But it was about $26,00 and I think right next to them it was $67,000. Now you're looking to drop $150,000 that is a modest home.

Thom: Yes, that is a modest home.

Dave: So it is important that you are empowered and you have the knowledge you need to go forward with your buying or selling and that's really what this is all about with the Idaho Real Estate Buzz and CORE Group Realty

Thom: Yes, we love giving all kinds of helpful information that people can use and make sure that they're educated when it comes time to get out there and talk to real estate agents and talk about what they're going to do. Whether they’re looking to list or to buy

Dave: And if you’re familiar with the show if you've heard it before you know in the opening segment we talk about what CORE Group, what they have new listings on or whether it's the Coming Soons or the new listings and you have four new listings this week?

Thom: Four brand new ones that just came on this week, actually towards Friday. So very good homes. One of them we actually talked last week was a coming soon so now it's converted to an actual listing.

Dave: Well, let's start with that one.

Thom: Oh sure, that's the one that was at 3879 Baja Way in S. Boise. Area code is 83709. That's that five Mile Estates subdivision. This one's the 5 bedroom, 3.5 bath on a half-acre so great yard. 2,600 sq. ft. house with 5 bedrooms and 3.5 baths and a 4 car garage.

Dave: When you get that many bedrooms you probably have high school kids and have extra cars to go in that garage.

Thom: Exactly, talking about those high school kids it has an amazing theater room in this house. So it definitely has that rec room bonus room for either the kids hanging out or for the man cave or for whatever you want to use it for.

Dave: Perfect.

Thom: RV parking on it. It's a 2 car garage on the house and a 2 car garage basically a shop so it's either you can use the shop for 2 more cars or use it for a shop.

Dave: Which is nice, a lot of people looking for that for their hobbies or whatever they're into if they're a mechanic whatever a lot of people looking for those shops. It's a perfect opportunity.

Thom: Exactly, exactly. So yeah once again that's 3879 Baja Way. Listed at $350,000 a great price for a 2,600 square foot home with 5 bedrooms.

Dave: Again and that is important for the people that have larger families. What's second on your list here?

Thom: Second on the list here right down the way a little bit still in South Boise is on Devonshire in Devonshire Subdivision, it's 6531 S. Cheshire Ave., this is a 4 bedroom 2.5 bath also with a 3 car garage. Nice 2 story house it's got garden space, nice yard. It is listed at $219,900. So it is 2,100 sq. ft. Walk in closets, fully fenced and just a nice little house with a 3 car garage. Garages are important.

Dave: Well you know what, they are! If you look at mine, mine's a storage room too.

Thom: Exactly!

Dave: But you know, is there kind of a rule of thumb how many ... I mean obviously I guess it depends on your preference for how many people and how many square feet is average?  If you have 3 people in your family on average you're going to want this amount or does it just vary?

Thom: It just varies for personal lifestyles and the way that you live your life. Our custom home builder Innovative Custom Homes, they do a great job of planning that for people so yeah a three-person family could need a lot of space if they do a lot of entertaining so it really just kind of depends on lifestyle and kind of around that.

Dave: I didn't know if there was kind of a rule of thumb for you as an agent if you're looking for four people, obviously you're going to want 3 or 4 bedrooms.

Thom: So yeah it varies, maybe a parent works at home so they need that extra 5th bedroom for an office and stuff like that. So really kind of depends on the situation and the family specific dynamics.

Dave: I guess that's kind of where the interview process when you sit down with the folks here at CORE Group Realty, you find out what their needs are. Do you work out of the home? Do you have hobbies? That way you can figure out kind of what people are looking for

Thom: Exactly. And traditionally people want to meet at the first house that they find online, we wholly encourage everybody to meet with agents first, really set that expectation, set those parameters for what you're looking for in a house and the expectations of going out and seeing these houses when you're available and stuff like that. It's always good to be prepared with your agent and have that communication.

Dave: I guess that's kind of the blessing and the curse of the internet.

Thom: Right?

Dave: As a customer I can say no I know I saw this at coregroupreatly.com and this is the house I want, there might be a lot more out there but I guess it's a curse and a blessing. You can see what's available out there. Coregrouprealty.com and that's Core with a C by the way, coregrouprealty.com you can see what's available and kind of make a plan but just go into it with an open mind and realize that the real estate agent is one who's experienced in this. Trust them, let them know what you're looking for then trust them and they can refine that as you begin looking at houses. Suddenly realize no, we don't need that extra shop, you can eliminate that.

Thom: For sure.

Dave: So just trust your agent, and make sure you interview the agent and that that agent is in tune with what you're looking for.

Thom: Exactly and make sure you're setting those expectations of ...

Dave: Realistically.

Thom: Yeah, realistic expectations of where you're qualified at, where you're looking at, what your lifestyle is, what kind of home you need and stuff like that.

Dave: Number three on the list of your new listings?

Thom: Number three we're going to move over to the bench actually. It's 2130 S. Pacific Street, a great little 2 bedroom, 1 bath house. 1,200 square feet. 1,256 to be exact. Single level house on a corner lot, fully fenced. Has a great garden space, storage shed, it has a 1 car garage? The current homeowner is using that 1 car garage as a shop. So he's got a bunch of stuff in there from what I hear, but this is just right over here at Overland and Pacific so it's a really nice location, convenient to get downtown, to get up to the freeway, really convenient to get everywhere. This 2 bedroom 1 bath house is listed at $178,900 so really good price point for being on the bench and its location. Once again that's 2130 S. Pacific Street.

Dave: You know one other thing in an article I read this week and we're talking right now about homes that are currently built but I read that construction is up in America? And that Idaho is #2 in the nation when it comes to new construction and that's homes and commercial by the way. But we're #2 in the nation per capita for new construction.

Thom: We've got a lot of new construction going on out there, a lot of options for people who are maybe not finding the right house and want to get something built or something brand new that nobody else has lived in.

Dave: Or if you're looking to move out of your house and get something new the folks at CORE Group Realty have specialists in that area, and they also would love to get that property to list as well.

Thom: Exactly.

Dave: Because listings are a little tight right now.

Thom: Yes, still at an all-time low of inventory right now.

Dave: But you have four new listings?

Thom: But we've got four new listings this week!

Dave: What is your fourth one here?

Thom: Oh the fourth one is 7086 W. Ring Perch Court, so this is in South Fork Subdivision. South Boise off of Cole. It's a 5 bedroom 2.5 bath with a master on the main floor. It's a 2 story house but the master is on the main floor which a lot of people like that. It has a large bonus room, beautiful hardwood floors, 3 car garage. Listed at $340,000. 2,816 square feet for $340,000 right over there in South Boise. Nice little home there. And once again the address is 7086 W. Ring Perch Court.

Dave: Now the nice thing is, if you want more information about these, there is a 24/7 phone number that you can call for CORE Group Realty, and right now they have one of their care specialists online that if you want help, need navigation or want to find out a little more information, you're not ready to talk to a real estate agent they're not a licensed agent but they can answer questions that you might have.

Thom: Correct, they're great at helping people through the website, through finding kind of getting set up and everything and, whatever they need on the website and so forth.

Dave: By the way that phone number is 933-7777. The phone number to call if you want more information. Another article I was reading this week about homes and that is the fact in Idaho that the value of homes from July of last year to July of this year, up 16%.

Thom: Yup that's about right, I think that's the same statistic that I heard, with this low inventory and everything, it's driving prices up. Homes are definitely selling for top dollar right now.

Dave: Now mind you, this is not liquid money.

Thom: Exactly. 

Dave: But I can't think of too many other investments you can make where the value goes up by 16% in a year!

Thom: In a year, right? Exactly.

Dave: Somebody who bought last Summer, they're going "Nice! I'm doing well."

Thom: They are doing well, and we've actually had a few listings where they did buy either just last year and for whatever reasons they have to go and so it was a pleasant surprise for them to be able to sell their home and not get in too much trouble. Because usually you have to stay in a home a couple years for it to gain that equity but definitely going up right now.

Dave: Definitely a nice feeling to know that the home you bought that now is worth more than what you paid for it to realize that you got a little cushion there whether you're looking for retirement down the road, to be able to live in it cash free and that's the situation my wife and I are looking at, having our house paid for in the next 5-6 years.

Thom: A great feeling.

Dave: It is, and whether you're making an investment and moving up, it is a great way to do that. CORE Group Realty is the company we're talking about, Thom Dallman who is the designated broker and co-owner is with us here as we talk all things real estate on the Idaho Estate Buzz. You can get a hold of Thom by calling 933-7777 in fact, if you called right now and said "I want to talk to Thom Dallman right now" the care specialist probably gonna get you a message.

Thom: Yes, it will get to me, for sure!

Dave: So we just want to encourage you, if you're thinking about buying a home, I just want to challenge you to give CORE Group a try, come and interview them, talk to them, look at their website, see what they have to offer and when it comes to social media and how they market their homes, it is very important for you if you're selling your home or buying, that all of these things are involved. We'll continue, going to be talking to Michelle Guth with Diversified Mortgage coming up, find out what's happening when it comes to interest rates and what's happening in the world of borrowing money as we continue with the Idaho Real Estate Buzz here on 580 KIDO.

Seg #2

Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnett and we talk every week with Michelle Guth with Diversified Mortgage about what really is making the whole thing go and that is finances. Michelle, welcome back to the show once again.

Michelle: Thank you, glad to be here.

Dave: Thom, something I'm kind of curious about here and I've talked to Michelle about it before and found it fascinating. That is that not all loans apply to certain situations. If you're doing different kinds of property investments or buying.

Thom: Oh yeah.

Dave: Things are different.

Thom: Oh yeah, they are, I guess a good example is recently we've had a lot of people kind of looking for more acreage properties with very kind of specific price points that they can go.

Dave: In other words, they don't want to spend a whole lot of money.

Thom: They don't want to spend a whole lot of money but they want the acreage and a lot of those acreage properties have manufactured homes on them, and Michelle can attest to this, those manufactured homes have a very different process when it comes to getting your loan qualified for them. What are your thoughts on that Michelle?

Michelle: With lending standards, manufactured homes do have different criteria with credit score requirements in many cases and in many cases the collateral itself. So unlike a frame-built home single family residence, the manufactured homes have to meet criteria for several programs such as we have to prove it's only been moved one time from the manufacturer to its current site so if it was sitting in a manufactured home park and somebody bought it, it might not be fanciable.

Dave: Is that just because of the wear and tear on the property?

Michelle: The concern is the structural integrity of the home has been impacted due to multiple moves so they want to see it has been moved just the one time from the manufacturer. Other criteria is, is it on a permanent foundation? Each county has different criteria as to what they consider that to be, but they have to have title eliminated and what that means, is that it's literally a manufactured home starts out like a vehicle with a title. So we have to eliminate that title and make it real property. So in the event that they sold it down the road it's not like personal property, it is affixed to that property and it is no longer titled.

Dave: OK

Michelle: So that, with certain other criteria, you can't have basically additions to the home without having to have all these added certifications done, so there's a huge number of criteria with respect to manufactured homes.

Dave: So in some ways, a manufactured home, it can get complicated.

Michelle: It can get complicated, and it's not that it's not a good product out there, it's just not a product that's going to be offered to every consumer and that specific property may not meet the lending requirements where it is fanciable.

Thom: So just a few more loops to jump through.

Dave: So as long as we're talking about manufactured homes, if I were to buy acreage at Cascade near the lake, and it was my cabin, or my vacation home up there, does that throw me in a whole different category?

Michelle: It does more just for down payment requirements, coding it as a second home versus a primary residence, you're going to have a higher down payment requirement of 10% or greater if it is a second home, with regards to the manufactured home again, if you want to do a construction-type loan you can do that but you'd want to work typically directly with the manufacturer of the manufactured home and place the property on the lot.

Dave: Now you said there's different credit criteria, is it more difficult, do you have to have a higher, better credit score? Lower? You said there's a difference, what is it?

Michelle: Correct, most lenders have a higher credit score requirement for manufactured than they do for frame built. Our state bond program has pretty lenient requirements for that but with respect to most banks, standard mortgage banks, big community banks, we all typically have much higher credit score requirements for manufactured.

Dave: Why is that?

Michelle: That's a good question.

Dave: That's why I asked it!

Michelle: In years past, the default rate's been higher on manufactured home properties than frame built so they just consider it a higher risk product as a result.

Dave: I got you there then. OK so manufactured homes, a different creature. I also know and we've talked about this in the past, that if you are looking like at a condo, that's not just a regular loan.

Michelle: It is a regular loan, but again, has different criteria’s, so just like manufactured you're getting the same type of loan product, it just has different requirements for the property itself. Condominiums for example, you do not own the land, so as a result, you have to meet certain criteria with the number of owner/occupant dwellings within the complex. So there's criteria with respect to that and what a lot of people don't take into consideration so often we see really good deals on condos but when you factor in the cost of those dues on top of it? There's a big difference in the price point if you went from a condo to a single family residence, in some cases you're getting $30,000-$40,000 in purchase price power. Going with the single family that has either no HOA dues or minimal dues.

Thom: I just had this experience! I had one of my clients reach out to me for a condo and were like "Oh my gosh this condo is beautiful, it's a great price point, would love to check it out!" and I'm like "By the way, did you notice the ... " it was like $600 a month in HOA fees for this condominium complex and they were like "Oh no, we didn't' see that!" We definitely excluded it.

Michelle: And that brings up a good point, again, when we've talked about in past segments getting qualified when I send them out the door they know what their criteria is, is what is the maximum I can spend not only on price point but on home owner's association dues and taxes combined because those are two variables that have a huge impact to their overall payment, so we have to look at that as part of their shopping.

Dave: Michelle Guth is with us from Diversified Mortgage, Equal Lending Opportunity. Now Michelle, a phone number if somebody wants to get a hold of you, maybe they want to get some loan information about a manufactured home or condo, how do they get a hold of you?

Michelle: Just call us at the office at 853-7878.

Dave: Now I guess another question that I guess I'm going to kind of throw out to you because we've talked about manufactured homes and condos, what other kind of property's out there, bare land?  What other kind of properties are out there where you've got a whole different set of rules?

Michelle: Well, those are the two primary criteria, land loans again, that is very different. Not all lenders will even offer bare land financing and it normally requires a higher down payment requirement.

Dave: Well why wouldn't they offer the ... I mean, the land ...

Thom: And it seems like there would be less risk for land!

Michelle: Actually, I think most lenders take a different approach where it is a higher risk because you don't have the collateral, you don't have anything there that's necessarily going to appreciate, so bare land, if it doesn't have already utilities to it that's going to be another overlay, most bare land lenders want to see that there's at least neighboring utilities to the lot or access them in a very near distance so that would be some of the added criteria but those are normally going to require a higher down payment requirement and a lot of them want to see that you're going to build on that land within a certain period of time, so they're going to implement some sort of a balloon on that loan to make sure that either they're getting paid out, or construction is going to take place.

Dave: And is that because since there's nothing on it, it's easier to walk away from it? Is that the bottom line?

Michelle: I think that's probably one concern, absolutely, not having any collateral on their it's just not typically going to be as much of an appreciating asset for the bank in event of foreclosure. I mean we saw when the market completely crashed and we had these huge developments of land and the values went way down on them and they sat there for many many years before they were ever purchased because there's not a lot the bank can do with them at that point. At least if they have a property that they foreclosed upon, maybe even had these investment groups that have picked them up or they'll put them out as rental properties where they can get some level of income coming in on them so they're not sitting there in the event there was a major housing crisis. So I think that's one of the concerns.

Thom: Very interesting.

Dave: Other properties of interest to me, vacation homes? Mountain cabins? Those kind of things. Is that tough to get a loan on?

Michelle: No, not typically. Again higher down payment if it's secondary residence. As long as it's typical for that area so if you wanted to buy a log cabin up in a mountain area, that's pretty typical, most comparable sales are probably going to be like properties, but if you have found a huge log home in the middle of downtown Boise that might be a little more complicated because the comparable sales are probably not going to be there of like type properties. So it comes down to like properties for the area for what you're buying.

Thom: And I've seen a couple log homes in Boise, so, they do exist.

Michelle: It's not to say you can't, you may get financing on them, it just depends.

Thom: One of the segments that we had with our customer care specialist Naomi, who invested in a duplex, is there different financing for duplexes and triplexes and fourplexes?

Michelle: There is, again, if the code is owner occupancy versus investment property. So investment property on multi-families requires 25% down payment, but if you're buying it as a primary residence you may even get as little as 3% down FHA for example for one of the products as long as you're occupying one of the units.

Thom: Just one of the units?

Michelle: Again, it's the intent of what you're going to use that property for will dictate what we have to have for down payment. One of the other questions I get quite often is townhomes, is that the same as a condo and the criteria. But a townhome is actually the same as a single family residence because you own the land it sits on, so we're going to follow the same criteria we would if it was just a standard frame built stick home. But again, pay attention to the HOA dues because that could be a big variable when you buy the properties that have attached walls like townhomes and so forth, the HOA dues tend to be a little bit higher.

Thom: Same with patio homes.

Dave: Michelle Guth with Diversified Mortgage with us today. By the way, if anyone has questions again I want to throw the number out there if they have questions about loans, about getting pre-qualified which you preach to us all the time: pre-qualified pre-qualified pre-qualified! How do they get a hold of you?

Michelle: Several options, you can talk to myself or one of my team members by calling again the office at 853-7878 or you can apply on our website which is dmgloans.com.

Dave: Or you can stop by your office!

Michelle: Anytime, we're right there on Marigold and Glenwood, so easy to find.

Dave: Kind of across from the Jacksons there and you can just stop on by and talk to the staff there. Had a chance to visit here a while back and just, you have some great people that work for you, they're just pleasant to work with and knowledgeable and a lot of fun. So, whatever you're looking for whether it's a vacation home or whether you're looking at a condo or a manufactured home ... see I learned a couple things today about manufactured homes about the credit score having to be a little bit higher. To me in some ways, that seems a little backwards from the way it should be, but I guess I can see the logic in why they do it. Diversified Mortgage the folks to get a hold of and talk to. Michelle, thank you so much for joining us today.

Michelle: My pleasure, thanks for having me.

Dave: We will continue on the other side here, it is the Idaho Real Estate Buzz, I'm Dave Burnett with Michelle Guth and Thom Dallman here on 580 KIDO.

Seg #3

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 who's going through an extensive remodel of her home right now and I just listen to her every day talk about the headaches of they've totally gutted out their kitchen, moving cabinets around, not having a stove for a couple weeks while they're re-configuring and stuff like that.

Dave: Is she married?

Thom: Yes!

Dave: I will say this, having been through this before, if you're planning on doing a remodel and maybe you might want to call CORE Group and talk to them a little bit about that, you need to be prepared! I was not prepared, and I think that the kitchen is 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 a pot of coffee ...

Thom: It's hard to do when you're getting your kitchen ripped up and you have no counter tops to put that stuff.

Dave: It is something to think about, but the end results if you do a remodel on your home, can be absolutely spectacular.

Thom: Can be, yes and you want to make sure you're doing the right ... and we've talked about this in past segments, that you're doing the right updates and the right upgrades for your subdivision or your area that you live in to make sure that you're staying competitive with your surrounding homes and not over-doing 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. What are some of the simple things that people can do?

Thom: Oh sure, gosh there are so many different little things you can do! One of my favorite things that I always tell people is do an accent wall. Go into a room and just paint a nice accent wall of a nice neutral color of, you know, something that just really brings out some characters in the walls. Faux-finishes are coming back around, so is wallpaper, so it's 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 make it feel like a brand new room.

Dave: So you can go down to Home Depot, non-paid sponsor by the way. 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: Yeah, total change of feel 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: For sure, easy, easy to roll on some paint.

Dave: Now I will say this, carpeting makes a big difference and I say this because my wife and I, we had this extra bedroom, this fourth bedroom that had just started collecting stuff and so we went and we threw all the stuff out, we went to the landfill and got rid of a bunch of stuff and all's we did is 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 in at a local place and paid $250 for this roll in 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 where if you're just doing one room at a time, can really spruce up your house with minimal cost.

Dave: And really makes you feel good about it, I walked in to 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 older carpeting, it's huge. And doesn't necessarily have to cost an arm and a leg.

Thom: One of the other things you can do too is they've got some great lighting fixtures out there where if you wanted to just go in and replace a couple light fixtures, changes the ambiance in the room. Put in some fluorescent light bulbs to brighten it, but can totally change the feel of a room with just a light fixture hanging from the ceiling in the middle of the room may not necessarily be something that you 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 hand, you can do that again yourself. Just make sure you turn the power off, and black wires go to black wires, white wires go too white, make sure it's grounded.

Thom: I highly recommend making sure your electrician is doing that part, but yeah.

Dave: It's really not hard to do and really not all that expensive either.

Thom: No, not at all.

Dave: I think a lot of homes, you get into homes that aren't custom built 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, you get to pick your light fixtures and put in not just the mass market light fixtures that most homes have and stuff so definitely a great option.

Dave: We have paint, we have carpeting, and we have light fixtures.

Thom: Going a little bit further, into the kitchen, doing a backsplash. Doing a brand new backsplash in your kitchen can completely ... you know you don't have to change your countertops, you don't have to go in and get new cabinets and stuff, just go in and do a new backsplash. Completely change the feel and the look of your kitchen which is the backsplash, so there's some really inexpensive and some really great tiles out there and some really amazing higher end ones as well that look just crazy different things with like metal pieces in them and stuff like that, that's a big trend right now is to have metal embedded into your backsplash 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 to paint cabinets and have a brand new look in your kitchen with maybe darker or lighter, doing a white wash on the cabinets, so another expensive go down and get like you said a gallon of paint of the cabinet paint and get the cabinets changed. One of my favorite ways of changing the feel of a room and I do this quite often especially if we have kind of a darker room is doing the big stand-up mirrors against the wall.  Not only the mirrors you hear the mirrors make you feel like the room's 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 help brighten up a darker room.

Dave: And it’s kind of fun to go out and shop for that mirror for the room and find the right mirror and place it just right.

Thom: I'm a big fan of mirrors if you here at CORE Group Realty, the office here or at my home, I have mirrors kind of everywhere propped up here and propped up here. It's not a vain thing, I don't look at myself in them, but I just like the way that it makes rooms feel more dimensional.

Dave: 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 up 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 and yeah!

Dave: The same trick works for your home to make it look bigger as well.

Thom: Exactly.

Dave: I guess another one for your bathroom if you put mirrors up on some of the walls, if you have a small bathroom and you walk in and it's just a narrow bathroom if you put mirrors up there it will help make that bathroom look bigger.

Thom: Totally makes it feel bigger obviously seeing the dimensions of the room kind of expanded with the mirrors, definitely a great way to go. Another big trend too that we are seeing are the floating shelves, the floating bookshelves or the floating shelves to put up on walls.

Dave: How does that work? Floating bookshelf?

Thom: It's a little bit of a system to get them attached to the wall sometimes, but you just think about putting those floating walls as a decorative piece and putting some books on it, putting your DVDs or whatnot your DVD collection, it's just a great way to expand a wall and to make it feel like there's a custom piece going on there, stagger those shelves to make it artistic looking or what not. So some great options out there for changing a wall by 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 many plants but she went down and got plants for inside the house and put plants around and really changed the feel of the house by making it more ... it came alive in a sense that suddenly there's living things in there and 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 the grocery store and getting a $20 bouquet of flowers each week and having fresh flowers sitting 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, make it just feel like you're outdoors. That can definitely be a definite bonus for making a house feel a little bit fresher.

Dave: A couple of minutes’ left in this segment, any other ideas?

Thom: Sure! Curtains! Curtains are a huge way to change a room, there's some really great options out there for sheers and stuff like that so you're still letting light into rooms without blocking them and stuff like that. Completely changes the mood of a room with what your curtains are. Do accent colors, add some throw pillows to your couch or your bed wherever you're putting these curtains and really kind of accentuate 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, so.

Dave: So really what we've come up with is really all the way up from $20 all the way up to several hundred dollars, ways of re-making rooms to make them feel new again or at least give them a different look so at least that way ...

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 that can help freshen up.

Thom: Great little helpful tips.

Dave: That can freshen up your look as well. And by the way, if you'd like to talk to one of the representatives who has gone through, we'll leave her name listed at this point but she's going through a remodel, they'd be happy to hook you up. All's you've 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 the co-owner and designated broker of CORE Group Realty here on 580 KIDO.

Seg #4

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 for CORE Group Realty. Coregrouprealty.com that's the website if you want to go check it out this afternoon or maybe tomorrow morning at your leisure, get up on a Sunday morning and go to Coregrouprealty.com and see what's out there in the marketplace. That's where you can do it and find out whether it's multiple listings or all the listings that they have they are available for you there at coregrouprealty.com.

Thom: Yup, that's the site!

Dave: You know we've talked a lot over the past about financing with Michelle Guth with Diversified Mortgage but you know there's another financing that's available out there, and in an odd sort of way I did this in a roundabout backwards way one time. I owned a home and I sold my home, the loan actually my father-in-law bought the loan out from the mortgage company.

Thom: Oh, interesting! So he carried the note.

Dave: He carried the note for me, and that was after he had sold one of his homes and, you know, he liked the fact at that point I'm almost embarrassed to say it but we were paying him 6% interest but that's much better than the 8% we were paying to our bank at the time.

Thom: You got an advantage for that, and a lot of owner-carries kind of go the reverse where they ask for a little bit more interest rates on it. You had a good advantage on that one.

Dave: Yeah, but that way my father-in-law made the money on it and it worked out OK but that was an owner-carried contract and you don't have to have family members involved but there are people out there selling and they're willing to carry the note.

Thom: Exactly. just speaking of this, one of the misunderstandings out there for sellers and home-owners on that topic is that they have to own the home free and clear. They can't have a loan on it. Loans typically have a due-on-sale clause in them, so if they find out that you've sold the home to someone else, they're going to ask for that loan to be paid off.

Dave: I guess you could do that loan but that's not going to last very long, because the bank's going to find out and want all their money.

Thom: And it's technically illegal, I think it's called a wrap-around loan that pretty much is kind of illegal these days.

Dave: Somehow the thought of jail and owing all that money at once ... not real positive. But if somebody does own their home outright, that's a great way for them to turn into an investment.

Thom: A great investment for them! There's certain advantages and disadvantages of owner-carries. We do have people asking for it on occasion and a few of our agents are writing up those contracts and being very diligent on making sure that everything is correct and protecting both sides but the main advantage obviously for the buyer is if you don't qualify for a traditional loan like if you have bad credit, if you are self-employed and don't have the history yet or what not, it's a great option for not having to have all that criteria that goes along with a regular loan, loan processing.

Dave: But that's at the decision of the seller.

Thom: That's at the decision of the seller, so the seller still has to kind of decide on that and take the risk so that's the risk factor that the sellers have to kind of go through when they're thinking about this and whether they want to do it or not is they have to think about that risk of what happens, they have to go through the foreclosure process just like a bank does to get the people evicted.

Dave: Let me ask you this Thom, if somebody's doing an owner-carry contract, I mean, the job of the title company is really really important at that point to make sure that every i is dotted and every t is crossed.

Thom: Yes, I want let an agent do an owner-carry contract unless it gets put through a title company to go through and make sure that everything is calculated correctly, all the payments are processed, they'll do the long-term escrow on it so the buyers are actually paying the title company and the title company pays the owner. Highly highly highly recommend and encourage that it goes through a title company to make sure that everything is on the up-and-up and done the correct way.

Dave: So in other words, if you own a house and it's paid for and I buy it from you, we're not just going to scratch a deal where it's "Tell you what Thom I'm send you a check every month" that's craziness.

Thom: Yeah, no. You want paperwork definitely because it is a transfer of ownership as far as the title is concerned, and the sale goes through just like a regular sale does and it goes through closing and it goes through escrow. It gets recorded to the state, and then the owner goes on as a basically a mortgagee as a lien holder on the property.

Dave: So for me as a owner, what are some of the advantages of carrying a contract?

Thom: Obviously the interest is one of the biggest advantages. You get the interest cash coming in, the money from the amortized loan amount. Sometimes for sellers, they can get a higher price on the house, you're not conforming to the loan requirements and having to get appraisals so they can ask for a little bit more of a purchase price in the event that the market continues to rise over the next year, two years, however long it takes for the buyers to get financed. They can calculate kind of a round-about higher price point of what it's going to be in 2 years when they can actually get a loan to pay it off. So a higher price point, the cash, it's a fast closing, you don't really have to go through as much title paperwork because you don't have the lender there with all their requirements and stuff. You can usually get it closed a lot faster. And then of course the tax savings as far as you're not getting capital gains if you sell a house straight out you don't have to deal with the capital gains because now that's become an ...

Dave: An investment.

Thom: An investment! That's what I'm going for.

Dave: So, what are some of the disadvantages of as far as the owner is concerned obviously there's a risk that somebody may go upside down on you, but what are some of the other disadvantages?

Thom: Well, I think that's one of the biggest disadvantages is remembering that you're going in with the risk of the buyer defaulting. You have to go through the foreclosure process you have to do evictions and stuff like that if they're not making their payments and so forth.

Dave: Let me ask you this though, if I own the house and let's say you're selling me the house and I go upside down on you, you get your house back.

Thom: You do.

Dave: At the full value.

Thom: Yeah you gotta go through the process to get the buyers out, but yeah ultimately you do get it back so it's kind of an advantage/disadvantage.

Dave: It's not that you're going to lose the house but it's just the pain in the neck that would be the disadvantage.

Thom: So, once again one of the disadvantages is making sure you've got the right loan terms and stuff like that and the knowledge and that's why it's important to make sure that you have an escrow company helping you manage that aspect of it. I think one of the advantages again for the seller and disadvantage for the buyer is the down payment. It usually requires a larger down payment obviously, and that down payment goes directly to the seller so it's cash to them, a nice big down payment and that payment usually is what's used to cover all the closing costs, commissions if there are realtors involved and stuff like that. So it's gotta be a pretty hefty down payment so that's kind of a disadvantage for the buyer is that they're investing that money in it with their risk of are they going to be able to make the payments and qualify for a loan in a year or two years whenever the term is up and stuff.

Dave: Is that something that with CORE Group Realty that you have listings that you know are owner financed?

Thom: We usually know if the sellers own it right out or not, that's part of the paperwork that we can do and if we want to approach that or not. There's a lot of people that are interested in owner-carries that we will do the due-diligence of following up with the listing agents on the buyer's side. We'll follow up with the listing agent to qualify and see if the house does qualify for an owner-carry if they're even interested in it. There's not a lot of sellers out there that are interested in it, a lot of sellers need the cash from their sale to do whatever they're doing next and so forth, or they have loans. A majority of the loans do have loans on them.

Dave: And thinking about it, and thinking this through it might be a case where a lot of people, where if they have parents who have passed away and they suddenly have inherited a property that is paid for from their parents, that might be something they'll sit and think about and go "Maybe could turn that into an investment."

Thom: Great way to get just that extra little interest incoming on it.

Dave: And I guess who you go through like you said, a title company once the paperwork's all done and everything's signed, all you do is just get a check from the title company.

Thom: Exactly, that's pretty much it, you just sit back and receive that check.

Dave: So it's real positive in that sense.

Thom: It's a great way to invest into your own financial future I guess if you will, as a seller.

Dave: And that's exactly what it is, you're becoming a land baron.

Thom: Exactly, and for the buyers they get into a home that they want, who knows if in a year when they do qualify if the same home if they'll find the same kind of home. Who knows what the market's going to do in the next year. Prices might go up; the sellers may just want their current purchase price market value on the house. So there are some kind of disadvantages and negotiations and advantages that go along for the buyers as well on that price point. Depending on which way you go and the negotiations with that. And usually the sellers if they're going to do the owner-carry, they're not worried as much about the credit. They understand the purpose of why you're going for an owner-carry and so are a little bit more lenient on your credit scores and your qualifications as far as being able to make those payments.

Dave: And that could be length time of the job, maybe having changed jobs, not just that I'm a dead beat and I have bad credit, but there are all of those reasons that are out there. Maybe they just moved to the area and would not qualify but they do want to buy a home, it's a great option and opportunity.

Thom: And for the buyers another great advantage is the fact that then as long as they're making their payments, they get their credit history kind of built back up again and it shows that consistent payment on those loans so it's a great way to kind of rebuild credit if it's a credit purpose that you can't get a loan.

Dave: Owner-carry contracts, if you're interested in kind of finding out more about that, give Thom a call and one of his agents here at CORE Group Realty and find out more and find out what homes might be out there that are listed as owner-carry contracts. Another option for you out there. And really as we mention at the top of every show this is what this is about to give you options, to give you knowledge, and give you information as far as how to buy a home and what you're going to do and expect and really something we've never talked about before but it does exist out there and that is owner-carried contracts. Thom thank you so much. CORE Group Realty, coregrouprealty.com 933-7777. That is the phone number, and if you have a question about a topic you can go to the website and shoot Thom a note and we'd be happy to discuss it here on the show.

Thom: More than happy to.

Dave: Thom thanks so much we will do this again next week here on 580 KIDO.


 Diversified Mortgage
(208) 853-7878
7977 West Marigold
Garden City, ID 83714


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