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Join in and listen as Dave and Thom talk about the rising interest rates, the truth behind those home improvement shows, and agricultural/rural living in the valley. Don't miss Michelle's segment where she talks about credit scores and what you want to know about yours. 

 

Seg #1

 

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 you can always go to, 933-7777 that is the phone number that you can always go to as well. Somebody will answer the call and get your call directed to where it needs to go. Thom another great weekend to buy a home!

Thom: Yeah, always a great weekend, isn't it? This weather out there is a little smoky but definitely prime weather to get out looking at homes, getting stuff under contract.

Dave: Well you know the nice thing is, if you really don't want to get out in the smoke that we've been dealing with the past couple weeks you can do it online.

Thom: You can! That's where most people start.

Dave: You can go to coregrouprealty.com and that's Core with a C, coregrouprealty.com and just check out the homes, the featured homes, the listings that they have and then kind of narrow it down to what you want to do. Talk to one of the agents and they'll get it all set up for you to go and view these homes. You can do it in your slippers in the comfort of your home. Air conditioned out of the heat and the smoke!

Thom: And just going along those lines of a good time to buy, one of the most common things we're hearing right now is as we talk about the lack of inventory and stuff that we have out there in the market and the prices are at prime highs, I know a lot of buyers are kind of hesitant on whether they should buy now or wait to see if there's any kind of downturn in the pricing.   But the thing to keep in mind I think that everybody should be thinking about is that interest rates are starting to eek up a little bit.

Dave: Could cost you if you wait too long.

Thom: If you wait too long you could be paying a whole other percentage is what the predictions are in the next twelve months is that interest rates are going to go up a full point.

Dave: That's a substantial amount of money, we can talk to Michelle Guth about that to find out exactly what that would cost on a $200,000 home but suffice it to say that if that is the case, we were talking before this show started I was off doing an event out of time, ran into a guy and we started talking about real estate.  He's been wanting to sell his home but he told me, he said he's kind of frightened to because he doesn't want to build, he doesn't know what's really out there, if there's something for him and I actually gave him your name and said call and before you even put a for sale sign on a house you can see what's out there and if there's something you're interested in, then at that point then you can sell your house.

Thom: Exactly, and of course, as we always mention, you need to make sure you're checking with your lender and making sure you get that pre-qualification to see what you qualify for and find what's out there in that price point and that size of home that you're looking for and see what the availability is. There are things that we can do, like if you're ready to list and get your home listed and for sale we can get you out there looking at property first beforehand before we get it listed so you have a general idea of what you want so that we can kind of plan it simultaneously so you get your home listed and get it sold quickly and get you into a new home. So there are things that we can do to definitely help that kind of a situation.

Dave: Let me get my broad brush out here.

Thom: Alright.

Dave: At this time of year as we're closing in on school starting, in all honesty are there some sellers that begin to go man, we were hoping to get it sold this Summer we want to move our kids to a different school district, or blah blah blah, there's always that deadline when school comes up that you need to get settled you don't really want to root your kids around with a broad brush in realizing that that's a generalization. Do you run into it this time of year where there's some motivated sellers?

Thom: Oh yeah! There are, there are people who are really wanting to get out of their house and there are I would say some families that have already moved the family to a new location to a new area so they can get the kids settled in and maybe one of the parents is still here trying to get that home sold. We get that on occasion so yeah there is definitely some of that motivation and that need to sell and get homes ...

Dave: Take the step. Well you have a featured listing you want to talk about, speaking of that. And it's actually a good segway into a home that is recently reduced price just a little bit and kind of a featured home.

Thom: Yeah we're going to feature 9724 Horseshoe Bend Road, it's a property that we have on .7 of an acre, it's on Old Horseshoe Bend Road just as you go up the hill from the Optimist Park just off of Hill Road. Great property with 4 bedrooms, 2 baths, it's got about 200 square foot basement, would make a great office it's finished and everything. We are pricing that at $250,000 this week so great price for the 3,440 square foot home.

 

Dave: Oh yeah.

Thom: It's an interesting property because it's actually it's on a rural preservation.

Dave: Rural preservation. What is that?

Thom: That's one that we don't hear of very often, but back in the day the zoning powers that be, planning and zoning deemed certain agricultural properties as ones that they kind of wanted to preserve. They had to make sure for various reasons whether it's agricultural to keep it producing agricultural or whether it is a property that may be kind of like this one that's up on the side of the hill to prevent landslides and so forth. They don't want to overdevelop those areas and stuff like that so they've kind of created this rural preservation zoning for some of these areas to kind of protect them. Protect them because of the agriculture or whether it's on a unique hillside or planned property.

Dave: This is kind of up on a hillside as you drive by its raised above the road by property 20 feet or so that you drive up into the driveway. Gorgeous home, I drive that route almost every day and drive by it.

Thom: Such a great location, such great views especially of the Owyhee’s out the front door so it's a unique property in the fact too that the front of it is all gravel and so it can be used for those people who may have some commercial stuff that they do out of their home.

Dave: Yes, it's a large driveway, working area.

Thom: Yes, up on that .7 of an acre as well so, pretty big lot. And it's got a couple sheds on it and those sheds do have electricity and water pumped to them so you can actually have your nice shop or build a shop there's currently a manufactured home on the property that they intend to take with them, that the sellers are intending to take with them so that manufactured home is set up on its own separate septic so that there is the opportunity to actually create a nice shop on there in place of that manufactured home.

Dave: If you haven't been up Horseshoe Bend/Hill Road for a while they did get the new bypass further down the way so it's not a very heavily traveled road really.

Thom: Oh no, not at all.

Dave: You go up to the skate park and there's nowhere to go, so it's not a thoroughfare in that sense until you get up to Floating Feather.

Thom: It's a very low traveled road. Super convenient to pretty much everything. It's got the Home Depot, WinCo shopping area right by there, so ... close to Eagle, you can jump on Hill Road and get to downtown Eagle in 5 minutes I believe.

Dave: And you're right there near 55 so you can get up to Horseshoe Bend, McCall, wherever you're headed as quick as you get out of the home.

Thom: Exactly.

Dave: So it is a nice location.

Thom: Convenient too.

Dave: So if someone is interested in seeing this home, what do they need to do?

Thom: Just give us a call, you can reach out to us, go online, check out our featured listings it will be on there if you want to get more information on it and check out the details on it, see some of the pictures. We've got some beautiful pictures, professional pictures done as we do for all of our listings so you can kind of see the 4 bedrooms, see kind of how it's set up. Just one more thing to mention on this too is that it does have the ability to on one side of the house, the building has been kind of almost separated almost to the point where you could create an in-law quarter if you will or a separate apartment, so there are so many possibilities with this house up there on Horseshoe Bend Road.

Dave: Well you get a little bit of acreage as well to give you a little elbow room to do what you want to do.

Thom: Exactly.

Dave: You might want to check that one out and you can do that at coregrouprealty.com, that's core with a c. Coregrouprealty.com or give a call to the customer care agent at 933-7777. You can do it right now as a matter of fact as somebody is always manning the phone you don't get that answering machine. Somebody manning the phone will get your call directed to where you need to go.

Thom: If you get the answering machine make sure and mention my name so I can know who dropped the ball!

Dave: Exactly, as there are people on staff that can take care of your needs, and that's the beautiful thing about CORE Group Realty that I've seen. Whether it's online, whether it's on the phone, just the staff here, we record the show in office right here off of Emerald. What is it? Emerald and Benjamin I think.

 

Thom: Benjamin, yes.

Dave: We record right here in the office place, and you have a good staff.

Thom: Yeah, they're great!

Dave: They're always going to act nice around you because you're the boss. I just come and go but they're always so nice.

Thom: I love hearing from the clients and other vendors that come through, our preferred vendors and stuff like that, how good they are, and how professional they are and how nice they treat everybody, so I have a really great group of staff right now that have been with me for quite some time and just enjoy working here and enjoy what they do.

Dave: You can call them 933-7777. We talked a little bit about interest rates, what's happening in the year but we will talk further about finances when Michelle Guth gets in here from Diversified Mortgage as we continue. This is the Idaho Real Estate Buzz, I'm Dave Burnett, he is Thom Dallman the ... your official title is official owner and designated broker, there we go, at CORE Group Realty. We'll continue on the other side at 580 KIDO.

Seg #2

Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnett and this is always the segment where we talk to Michelle Guth with Diversified Mortgage equal opportunity lender for you. Did I get that right?

Michelle: You nailed it, thank you Dave.

Dave: Alright, just gotta keep legal on that one. Want to talk a little about credit today, we've talked about it in the past but man oh man, your credit and your credit scores and reports, just so important when it comes down to whether you're purchasing a car or really purchasing a home it's very important.

Michelle: Undoubtedly, without a doubt I would say credit makes the world go around when it comes to lending.

Thom: I was going to say that!

Dave: The thing is, and I think, correct me if I'm wrong on this because I'm an expert at nothing, I know a lot about everything, I'm an expert at nothing.  When it does come to your credit score, sometimes a car dealer's harder on you than a home loan, kind of a different set of standards on a home loan is that correct?

Michelle: Absolutely. Credit reports under a credit rating, we use different algorithms to weight the importance of credit in different areas that you would see on consumer debt for example. So one of the misconceptions that I get from so many of my clients is they'll see their credit scores on different consumer websites and come and give me a credit score not understanding that when we pull a mortgage report it's likely going to be quite a bit lower on the mortgage report than they're going to see on a consumer rating. So when they're applying for car loans and such their credit rating is typically going to be a lot higher than they will see on a mortgage credit report.

Dave: Interesting. But I do know just from personal experience when it comes to your credit report if there is a mark that the lenders when it comes to home loans, they want to know why. If there's something off, they want a written explanation, is that correct?

Michelle: It depends, we do what's called an electronic underwrite so if that electronic underwrite comes back and states that no further explanation is required we typically won't ask for those letters of explanation but it depends on the extent of the credit hiccups as I like to call them. How recent they are. If they are two or three years old, it may be a non-issue. If they're in the last 12 months, it's certainly going to be a bigger issue so a lot of it's in the timing of the event as well.

Dave: Is there a time frame, how often should I get my credit report pulled?

Michelle: I recommend to all consumers that they should check their credit a minimum of once a year in some cases maybe twice a year. A lot of it's just for erroneous things showing on credit, quite often I'll have clients that will find that they have reporting from other family members with similar names and such and there are a few government websites you can go to where there is no charge to the consumer to pull the report. So I would encourage you to do that once to twice a year.

Dave: But if you check your credit, does that ding your credit?

Michelle: It does not when you're pulling your own personal report. It's when a creditor is pulling it it is a hard inquiry against your credit report.

Dave: And maybe you can explain it, why is that? Let's say Chase bank, you apply for a credit card and they check my credit. Why does it go against my credit that I just inquired?

Michelle: The credit agencies know that you're seeking to obtain credit therefore they know there's a future debt event which is likely to occur which is why it impacts your credit score.

Thom: Future possibilities.

Dave: If you're wanting to consolidate some stuff, come on people. 

Michelle: And that's a good point because in some cases we do recommend doing some restructuring of debt, it helps people with their debt ratio where we can maybe consolidate their debt and get some overall monthly payments down to help their monthly residual but it all depends on if you're acquiring new debt and your loan balances are going up, your monthly payments are going up, they're all factors we need to look at.

Dave: So you would probably say that to go online and apply for three to four credit cards probably a bad idea?

Michelle: Not a good idea, no. And the other thing, you bring up a good point Dave, is length of credit history. That makes up a percentage of your credit score is how long have you had that credit card. I've had clients come in and say "You know I knew I was going to be applying for a mortgage so I went and I closed all my accounts and paid them to zero" and we pull the report and they're surprised when their credit score has plummeted and the reason for that is even though they had always paid those account as agreed, the length of credit history was impacted because that does have a pretty significant impact on your credit score as far as how long have you had that debt. So if you had a five-year credit card that now suddenly has been paid and closed and you have another one you left open that's only been left open for a year you only have one year of credit history of open, active accounts. You really lost that weighted average between the two cards so if you're thinking of closing accounts, definitely I would recommend first look at your interest rates and look at the monthly fees but also determine which one maybe you've had the longest and try to keep those ones open if you do feel the need to have them close some accounts.

Dave: So it would be better for your credit score to do it that way. And if you'll indulge me Thom, if I can ask a personal question now.

Thom: Sure!

Dave: Here's one for you, I actually, I think we're buying a car and suddenly it came up that I had walked out on my JC Penny's bill of $121 and never paid it and they wrote it off and so I can't remember what the number was but there was a big ugly black mark from JC Penny and it took me forever and every time I inquired about that or challenged it, it drew it up and put it back up on my credit report again, is that typical?

Thom: Interesting!

Michelle: It can be. When you dispute an account a lot of times I assume they probably turned it to collections.

Dave: I never heard from them but I guess so!

Michelle: So when the collection agency sells the servicing that can cause it to pop up again on a credit report. If you inquire on it, it basically I like to say you're waking the sleeping giant. So you inquire on it then it's basically going to be a most recent active event on that account so it can continue to pop up without a doubt until it's paid to a zero account it can continue to be sold and continue to impact your credit score from years to come.

Dave: And we never heard from anyone other than seeing it on a credit report when we contacted Penny's and I'm happy to talk about it, I said "I'll pay you the $121 just get it off there." They said "No, we don't own this you can't pay us." So we were kind of stuck for a long time and actually this was probably ten years ago and at that point dropped it and just let it go and I guess it eventually disappeared.

Michelle: Fell off, yeah. And that brings up another good point. I have a lot of people that may have similar events and what they can do is they can employ a credit repair agency and what that agency will do is they'll go in and they'll file disputes which anybody who's tried to do that will understand the difficulty in the timing and how much follow up is required so it could be a good opportunity for somebody to really work on cleaning up their credit report by hiring one of those agencies that are going to work to get those erroneous items removed from credit.

Dave: And it's good to know, I have to admit, we hadn't pulled our credit report for several years probably two and a half years and when we did we had an AT&T write off in my wife's name, AT&T phone service, to which we never had. And after about 8 months of chasing this down turned out there was another Cynthia Burnett in California, and it was her bill.

Thom: Exactly.

Dave: But it was stuck on my wife's credit report.

Thom: I see that happen a lot especially for instance my dad and my brother they both are J first name and Dallman last name so my brother and my dad go back and forth over their credit reports all the time because they end up with each other's credit issues and stuff like that. And in the past we've had clients who do have some of these credit issues and what not and I think that's one of the great things about Diversified Mortgage and Michelle's Team is they're really good at getting people into where they need to be, if they need credit repair matching them up with a good credit repair company that will help them through that process staying in contact through that process. So that when it comes time to buy a house everybody's ready to go as soon as it happens as soon as the credit gets to that point. I have to give a really good kudos to Michelle for that.

Michelle: Thank you Thom, you bring up a good point which is why we say it's so important to get in, sit down with a mortgage consultant and go through your credit report so you are in a position to buy once you're ready to do so. Reviewing that credit report is so important.

Dave: More or less where do your scores need to be for purchasing a home?

Michelle: It depends on the program. We use a rule of around 620 as your mid-score. We'll pull all three repositories and we'll take the middle of the three. So ideally we like to see 620 or greater. There are some programs that will allow you to go below that but the under writing parameters are going to be far more stringiest. 620 and above is ideally where we like to see the minimum credit score.

Dave: Michelle Guth with Diversified Mortgage. Now if somebody wants to come in and schedule a chance to talk to you or one of your folks about their credit, about getting pre-approved for a loan, how do they get a hold of you?

Michelle: Please give us a call at 853-7878 or visit our website at dmgloans.com.

Dave: Just a couple minutes’ left of this segment. If you were to list the biggest mistake people make with their credit when it comes to applying for a loan and finding out things, what's the biggest mistake they make?

Michelle: Well one, not paying on time. Once you go over that 30-day delinquency you're going to have that major derogatory hit your credit report but the other is maxing out credit cards. I can't tell you how many times I've had clients come in and their credit cards are at the limit when we pull the report and they say "Well it doesn't matter I pay it off in full every month" but what they don't realize, there's 30-day lag period. So even though they're paying it off, they turn around and they charge it up immediately it never gives the credit report a chance to catch up to show it as a 0 balance. So when you do max out your credit cards that has one of the biggest impacts to credit score of anything outside of derogatory events.

Dave: I think I've heard you say it before, what is the percentage and where do I want my credit card to be? 

Michelle: 30% or less of your available limit. So if you have a $1,000 limit, $333 is the highest you should ever try to allow your balance to hit. So again even if you're paying it off you just don't want to exceed that. So whatever your limit is take it to 30% and consider that to be your limit.

Dave: Perfect. Michelle Guth with Diversified Mortgage again your phone number if somebody wants to call and set up ... I don't want to call it a counseling ... yeah I'll call it that, a counseling appointment for credit or for borrowing money how do they get a hold of you?

Michelle: 853-7878 or dmgloans.com.

Dave: Michelle will be your personal counselor.

Michelle: Would love to.

Dave: This is the Idaho Real Estate Buzz and as we've talked about in the past, it's not really about buying or selling a home but empowering you to have the knowledge you need to go forward and make a wise decision and make a profitable decision whether you're a buyer or a seller. We'll continue on the other side; this is the Idaho Real Estate Buzz here on 580 KIDO.

Seg #3

Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnett along with Thom Dallman of CORE Group Realty. Coregrouprealty.com, 933-7777 is the phone number to call. We were talking over the break about some of these shows on TV about homes ... let's talk a little bit here, you may get me going, you may get me wound up here in a minute. Reality versus myth. It's kind of like a sitcom or a drama, they create a problem, they have the solution, they resolve it all in 60 minutes.

Thom: Exactly, those reality TV shows like House Hunters, or International, or Fixer Uppers, Flip or Flop.

Dave: I guess that's the biggest thing, they show that we're going to go show them three different houses and they're going to make an offer on one.

Thom: Exactly.

Dave: They make it look very neat and tidy.

Thom: Yeah, it's so quick too. It's within 60 minutes you have looked at houses, you've bought a house, you've moved into them. The reality is..

Dave: You have coffee and discuss which one you're going to buy. But that's not really the way it works.

Thom: Yeah, just kind of starting off with just the basic concept of looking at homes. You don't have three homes to look at, those homes on the reality TV show, those are just ones that ... they've already identified the house that the person's buying or possibly has bought by the time that they actually record this. So they pick two other homes that kind of match and kind of give them, they make it look like they have an option but ultimately it's not just three homes that they look at. Ultimately I'd say on average most home buyers will look at about 20 homes before they write a contract on one. Before they find one that has most of the criteria of what they're looking for in a home.

Dave: Well, let me ask you this question because I've wondered this. I have a video production company that I run and do training videos on but as these people peruse TV shows, I've often wondered how it is that these houses remain on the market because it takes a while to put these things together. So that's where it's a little bit phoney baloney.

Thom: Yeah, once again these TV shows make it look like there's time to think about it, to have coffee, to put in an offer but in reality on the TV shows they've already purchased the house that they are going to move into and the other two homes like I said are homes that are just kind of currently on the market that they can get into.

Dave: Film and get out.

Thom: To film yeah in today's market homes are selling too quick, you can't do that you can't kind of hem and haw and think about it, sit over coffee and whatnot, you kind of have to make a quick move on homes in today's market.

Dave: Let me talk about another myth and by the way, I'm shooting from the hip you have no idea what I'm about to ask you. It seems like they always create a drama in one of these shows where something is structurally wrong with the house, either the electrical totally needs to be totally re-done. There's a sagging roof that needs to be re-done.

Thom: Oh yeah, those "fixer uppers."

Dave: If you have a fixer upper and you have something like that, I mean it's not just a "Oh it's another $8,000" it's a problem.

Thom: $8,000 is a lot of money to people, it can be a huge problem. The TV shows that run into and encounter those problems these people are investors; they have the money behind them. And so $8,000 fix it up while they dramatize it and what not it's really kind of easy for them to pay those kind of fix-ups. For the average person that's not so much true. You have to take that into consideration and make sure that you're following your budgets and when you initially go into a home and do your inspections you need to identify it and be able to identify if these problems could pop up and identify those before you purchase the property to make sure you're not getting stuck with this huge remodel bill for something that you weren't expecting.

Dave: Oh look, the basement is leaking we need to re-do all the basement walls. That is not something as a home-purchaser you do not want to hear that.

Thom: Any good investor, and I love that they create that drama around it because it makes for good TV, but honestly they probably already have inspected the house before they even purchase it, they already knew that that problem existed they just throw it on air as a surprise to them. Through the process of buying the home, they probably have already identified this, they know their budgets, they know what they're going to need to pay for on the house that they need to fix up.

Dave: By the way, we hope we're not spoiling these TV shows for you in doing this, but it takes time and what's a tell-tale fact and I pointed this out ot my wife on one, they were looking at two of the houses they didn't buy, they were looking at them. There were leaves on the trees and when they got around to showing them there were no leaves on the trees. They knew they weren't buying these ... these houses were just kind of a shill put up there because a whole season had changed before they showed the houses they rejected again. Whereas the one they bought, no. There were still a lot of leaves. That's just messed up.

Thom: It takes a little bit of time to go through the process of buying a home and so forth.

Dave: What are some of the other myths that these shows sort of propagate.

Thom: I would probably say one of the biggest myths that they show especially like on the Flip and Flop and Property Brothers and stuff like that. They always seem to sell those homes because of an open house. They do one open house, they get all these people through the house and all of a sudden they have five offers from people during that open house. On open house after just being on the market for a weekend. I don't know if it's the actual statistic that I read somewhere but in my mind the statistic that comes into my mind is that 15-25% of homes sell during an open house. Most people purchase homes when they're going out looking at homes. They don't buy them during an open house that's one of the biggest fallacies of the reality TV shows is that everybody buys a home during an open house.

Dave: Yeah it's like "We had four offers during our open house week." If you're selling and you're having an open house, do not expect those kind of results, it would be nice, but it doesn't really happen.

Thom: Exactly. That's probably one of the biggest things that we hear from home sellers is they ... "But they sell them all the time on TV during open houses so we need to have one." Which yes, they do provide a service and they do provide buyers for the certain homes ...

Dave: What does an open house do for a seller? I mean there's obviously a benefit if it's not just being sold.

Thom: It does bring traffic through, it does bring awareness through. A lot of agents go traveling around to open houses to look so they have in mind for their buyers and they'll bring their buyers through later.

Dave: In some respects, it's as much for the agents to come look at it as it is for the home buyer.

Thom: And for the neighbors to come check it out! We've talked about that before. But yeah there are agents that go and tour open houses keeping in mind what they have for buyers and looking for homes particularly.

Dave: Especially with inventory so low. You want to be familiar with all of the homes that are available out there.

Thom: A good buyer's agent will know and be good about what is available and what's out there.

Dave: I had never really thought about that before, that it's just a way for them to kind of do a little prospecting and see what's out there.

Thom: Exactly. And there are potential buyers that are coming through, there are lot of lookie-loos. There are a lot of people that like to spend Sunday afternoon just going around jumping around from open house to open house to get ideas for their home projects and things like that.

Dave: But the real estate agent, a good real estate agent they know immediately don't they? I mean they know if it's a tire kicker or I mean it doesn't take them 30 seconds to figure it out.

Thom: Yeah you can pretty much identify within the first minute or two of conversation with someone that comes into an open house whether they're in that boat or whether they're really looking.

Dave: Having been that casual Sunday stop by and look I always figured they had us ID’d within a minute. They knew whether we were really looking or just lookie-loos.

Thom: Exactly.

Dave: And I hate to ruin it for somebody who loves these shows because my wife and I will watch them all the time. We'll sit down and we'll knock out an hour and just do other stuff and watch one of these shows as they go.

Thom: It's amazing how much time can go by watching these shows, especially on a Sunday afternoon when you're just sitting on the couch having coffee and one episode after another and next thing you know it's 2:00 in the afternoon and your whole day has been watching these home fix-it shows!

Dave: Didn't do what I was supposed to do today. Oops! So I guess one of the other frustrating things you see, is that when it comes to getting the contractors and they have somebody they work specifically with for the show, sometimes it's a little difficult to get the person in to do what you want them to do.

Thom: Oh yeah and they do show it sometimes on the shows where they ... the project's been delayed because the roofer hasn't shown up to put the roof up or a framer all of a sudden got sick and so they're scrambling to find another framer. Those things actually do happen. There are times when you want something done and the person that's supposed to do it is not showing up. I'm currently going through something like that at my personal home right now! We have a little bit of a roof issue and our roofer has been ...

Dave: Missing in action?

Thom: Kind of a little bit, yeah! For various reasons and what not. We always get the excuses and what not but yeah, it happens. It happens out there in real life where you have delays of weeks sometimes.

Dave: And if you're doing a renovation it can bring the whole project to a grinding stop.

Thom: It sure can because there are certain things that you just can't move forward from without getting it done.

Dave: Which is part of the reason though why ... they have people lined up because they're on a shooting schedule. They need to get it done.

Thom: They've got their trusted providers and their trusted service people that they know will get in there. And with a TV show it's a little easier for them to kind of hold them accountable, if they want to be on TV and they want the publicity then you need to be showing up for this stuff.

Dave: I'm going to put you on the spot here, if you were to have a TV show what would you call it? You know you've thought about it!

Thom: I haven't!

Dave: You have! I would think that if you're working in real estate you've been thinking, "I can do a TV show!" We'll come up with a good name for a TV show.

Thom: I'll have to come back with that!

Dave: Flip or Flop's taken, sorry.

Thom: I love the flip and flop idea, that's such a great name and how it goes a lot of times. You either have a flip that's good or you have a flop that you walk away with almost no profit from it.

Dave: So that one was a stroke of genius. We're going to continue on the other side and take a break. We'll be back with the final segment here on the Idaho Real Estate Buzz, 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/designated broker of CORE Group Realty. It's CORE c-o-r-e. Coregrouprealty.com is the website, and 933-7777 is the phone number to dial if you'd like to talk to the customer care agent or get a hold of Thom or anyone here at CORE Group Realty. So just dial 933 and just start hitting 7s until the phone rings.

Thom: And it will eventually get through to us!

Dave: You know, we've talked about a number of different kinds of properties, I was fascinated to find out some of the things about condos and the way financing works for condos. We've talked about manufactured homes, stick built homes. What other topics have we not talked about when it comes to homes?

Thom: Gosh, there's so many different topics that we could probably talk about but the first thing that is kind of coming to mind in my head is a little bit of something different that I am working on right now. That is an agricultural farm.

Dave: Like a ranch?

Thom: This does, it does have a home so it technically could be considered a ranch!

Dave: What's the difference between a ranch and a farm?

Thom: In my mind a ranch is more animal related whereas a farm is more agricultural for crops. So that to me is the difference between the two. Some people may beg to differ but they're usually classified in the same way. So if you search for them you are searching for farm slash ranch properties so they can be utilized either way depending on the set up of the land.

Dave: I was just trying to think, not to shoot it down but I've worked on a dairy farm as a kid with dairy cows but the farmer called it a farm.

Thom: Oh, interesting.

Dave: But he always referred to people that had cattle, not milk cows, as a ranch.

Thom: I wonder if that's because ... well your crop would be considered milk then I guess?

Dave: I don't know I'm going to lay awake thinking about that now. That's why God made the internet.

Thom: That's a good research into something like that.

Dave: It can be something that somebody can buy, they buy and sell all the time.

Thom: Yeah exactly it's they're currently around 60 active farm/ranch properties available in the Treasure Valley that's Ada, Canyon, and Gem counties is what I looked at, been looking at because they are looking at specifically selling in Emmett. Because this is such a unique type of property your kind of have to expand your area a little bit, you can't just look in Emmett for what these ranches are selling for because they don't sell them very often.

Dave: So he's looking to sell?

Thom: He's looking to sell some acreage/orchard property over in Emmett.

Dave: So now for you as a real estate agent, you have to identify are you wanting this broken up and sub-divided, are you wanting to sell it as one big plot of land. Is that where you're at in the process?

Thom: Exactly, we're trying to find out what their motivation is, one of the many things that you look at with all these properties is what are the potential zoning's and stuff. Can it be subdivided? Has it already been thrown into the planning and zoning for it to be subdivided into different areas and stuff like that. There are varying degrees of farms out there, few have those planning and zoning conditions already sent in to break them into subdivisions some don't. Some are just pure farm land or orchard land or ranch land that they're just wanting to get sold in its current condition. That's one of the many things that we're going through as we're looking at this one versus the other ones that are out there for sale. The ones that have sold so far this year we've had 13 of those ranches sell so we really have to kind of buckle down and do some comparisons on looking at the condition, the type, even looking at water rights. That's a huge part of it, how much water shares do they have available to the land for irrigation purposes and so forth because that's huge. You don't want 50 acres that have very little water and wanting to try and grow crops on that.

Dave: And back to the zoning issue to talk zoning. That can be a huge issue. I knew the guy who originally built Eagle Knoll Winery out there on Highway 16 and originally as he built it, it was zoned ... they zoned it commercial and he said the taxes are going to kill me on that I'm trying to plant grapes out here so he went through a big fight to get it zoned agriculture and then eventually they put a golf course in so I don't know it must be commercial I don't know. I don't know what a golf course would be.  You can go round and round about the zoning out there.

Thom: Yeah there's all kinds of complications that come with that so you really want to do your due diligence when you're looking at these properties of talking to the planning and zoning committees within that district to make sure that you do know sufficiently what that zoning is, what the potential is for the future what you're planning to do with it and if it fits the current zoning on it. Huge part of the due diligence on these properties when you're going through that process.

Dave: As we look back in the past for those who've lived here any amount of time, they'll remember on Fairview right there across ... well right there where The Village is at, that was a dairy farm.

Thom: Oh yeah.

Dave: So at one point that was all dairy land and at some point, the owner of that farm said "You know what? For sale!"

Thom: For sale and it gets converted it happens all the time as population grows and people move into town and all these new subdivisions, these subdivisions are technically farm land that have been converted so planning and zoning does allow for re-development and growth.

Dave: You're looking at an orchard so somebody that's looking for an orchard, do they need to call you?

Thom: Yeah! Please do! I don't have the specifics, it's still in the initial phases and stuff like that. They're still working through their process of what they want to do. We're looking at comps and what it would price at. Once again this is a unique property so the pricing on it is a little different than you would do on a single family home and so forth as far as looking what it would sell for and stuff like that. And you have to kind of compare the fact that it's an orchard versus some of these farms are just alfalfa fields for hay for feeding and stuff like that. You really have to compare the crops as well.

Dave: Because there is labor involved with orchards and harvesting the crops and maintaining the pruning that goes on. I say that like I know what I'm talking about because my father in law owned an orchard down in the Buhl area.

Thom: Oh really?

Dave: Yeah built a house, he bought five acres and it was orchard, apple orchards and he built a house right in the middle of it..

Thom: Oh nice!

Dave: And so then he learned about farming apples. So it's kind of interesting to watch that happen. The nice thing is, when it comes to CORE Group Realty and I say this un-solicited, whether you're talking condos, whether you're talking a ranch, acreage and an orchard, whether you're talking bare land or you're talking your traditional home, CORE Group can handle it and has the people to be able to get it figured out. Someone to come in and look at acreage with trees on it, not everyone can do that.

Thom: Yeah exactly, it takes the work and the dedication and the knowledge of what to compare it to and to be able to find someone that has that knowledge is huge and important. So luckily we've been around long enough and we've done enough sales and the people we have ... if we don't know it, we have the resources to find the information out.

Dave: If you can't do it, you'll find someone who can. 

Thom: Yeah exactly!

Dave: By the way, in just the last couple of minutes, want to talk about the website which is coregrouprealty.com if you want to check that out online this weekend and then talk to the folks at CORE Group Realty. We started the show talking about some of the fears people have and some people who really would like to sell but they don't know if there's a home out there, it's the perfect place to go and start looking to see what is out there in case you wanted to sell your home which you then can move into.

Thom: For sure, go look at it, we have a direct feed from our local MLS that gets fed every 15 minutes.

Dave: Which by the way, that's Multiple Listing Service. It's an acronym you use every day, but to them ...

Thom: Multiple Listing Service.

Dave: Which is a list of all the homes.

Thom: Every single home that is out there and available, everything from the single family to the condo to the farm and ranch. It all feeds into our website.

Dave: So you could spend a lot of time just surfing around.

Thom: Oh yeah, looking at all the different possibilities out there and really getting a good idea of what is available and once again, we're at another month of inventory going down so there's not as much as there usually traditionally is.

Dave: And I think we were around two months plus a few days of inventory?

Thom: Yes, and now they're saying here in Ada county we are at two months even.

Dave: Wow. That is amazing.

Thom: So yeah, go check it out, it's a really super user friendly system, easy to search for specific property depending on what you're looking for even down to the school district if you're looking for a specific school district for your kids. Anything that you need to look for and search is in our system and makes it so easy.

Dave: Coregrouprealty.com is the website, 933-7777 that is the phone number and Thom and his staff always available to talk to you about real estate whether you're ready to buy, whether you're ready to sell, or whether you're just thinking about it, they'd love to chat with you and see what your possibilities, what those could be. And they also encourage you to interview that person who's buying or selling your home. It's the biggest financial decision you'll probably ever make in your life, I know it is for me and that way you want to make sure you're getting the right people, the right fit and CORE Group Realty would like an opportunity to do that for you.  We'll do this again next Saturday and we do it every Saturday at 2:00. You can catch us online as well at coregrouprealty.com and go back and listen to past shows as well. I'm Dave Burnett, he is Thom Dallman with CORE Group Realty on 580 KIDO.

 

 Diversified Mortgage
(208) 853-7878
7977 West Marigold
Garden City, ID 83714
http://www.dmgloans.com/Home

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