Today on the buzz our broker, Thom Dallman is telling you all about our 59 Day Sales Guarantee and talking about some of our current featured listings. Michelle Guth with Diversified Mortgage is talking us through tax questions as regarding home loans, interest rates and the difference between mortgage banks and traditional banks. To wrap things up Dave and Thom are giving you an insight into the strength of our current home market. Enjoy! 

Seg #1


Dave Burnett:                    This is the Idaho Real Estate Buzz, I'm Dave Burnett. He is Thom Dallman, the Co-owner, designated broker of Core Group Realty. Coregrouprealty.com, that's the website, (208) 933-7777 that is the phone number. My recommendation to you is get online, go look at coregrouprealty.com and get familiar with the company. If you're thinking about buying, or selling a home that's a good way to introduce yourself to the company, what they have to offer and then you can make that call and talk to Thom.

Thom Dallman:                  Yeah. Give us a call we have people standing by if I'm not available, there's someone definitely hanging out ready to answer any kind of questions that you have. We'll make sure you get your answers.

Dave Burnett:                    Yep. The nice thing is with the website is, if somebody wants to email you, you can do that right there.

Thom Dallman:                  Directly, yep. Happens all the time, so I'm usually here and available most of the times. So, if I'm not in a meeting I will most definitely return your phone call, or return an email as quick as possible.

Dave Burnett:                    One of the things about Core Group that you'll find out about them, and that is something that when I first started talking with you and doing this show is the 59-Day Guarantee.

Thom Dallman:                  Yeah. We've got the 59-Day Guarantee for those people who are kind of in that situation where they just need that peace of mind knowing that their property is gonna sell. It's a program really designed for ease of mind, for knowing that we're gonna get that house sold, and that there's the guarantee that if it's not sold then you don't have to pay a listing fee. If we can't get it sold within the 59 days, you no longer have to pay the company the steep fee for it.

Dave Burnett:                    So, what that does is it takes pressure off the seller-

Thom Dallman:                  Yep

Dave Burnett:                    ...and puts pressure and your people to get that house sold.

Thom Dallman:                  Yep.

Dave Burnett:                    That means obviously that's what it's all about.

Thom Dallman:                  Make sure that we're doing everything ... Yeah, we do. It puts the pressure on us to make sure that we're doing everything possibly, not that we don't normally do everything possible to get a home sold, but there is that little added pressure for us. There are some regulations and some restrictions that go along with that program and stuff like that. Unique homes per second of are harder to sell-

Dave Burnett:                    Yeah.

Thom Dallman:                  ...so they wouldn't be included in the program. But, definitely something worth checking out if you're kind of in that situation where you just really need to get that home sold. So, we can walk you through the process of what it is, we come up with a price that you guys are happy with, and go from there on the program.

Dave Burnett:                    So, you can come consult with Core Group Realty at no obligation for that consultation to talk about your home and your sale.

Thom Dallman:                  Yeah, do it. We've had probably I think about seven or eight in the last couple of years that we've done on the program, and been successful with getting them sold. So, one not so successful unique property that we ... It was just a unique property, a pyramid house in the middle of the country that was really difficult to sell.

Dave Burnett:                    An egg-shaped dome in the middle of desert, hard to sell sometimes.

Thom Dallman:                  Hard to sell, hence, the requirement of it's got to be more of a common home that people would really desire if so.

Dave Burnett:                    Speaking of those traditional common homes, what are some of the listings that people could find at coregroup.com?

Thom Dallman:                  Yeah. We've got a couple of new listings so one of the spots on our website coregrouprealty.com, has the featured listings page. So, that shows all of our listings that we have currently active and available. So, we like to make sure that people know that they're there. One of the houses that we have is a really kind of a fun house, it's out in Middleton, the address is 26755 Breezy Lane. The reason why this is fun is because it's on five acres, and I like the verbiage that our agent has used for the description on it "Lush Landscaping with a babbling brook". It's a-

Dave Burnett:                    Wow. If you're not aware of this, five acres that's quite a bit of land.

Thom Dallman:                  That's quite a bit of land, especially in the valley for people to get into and still have the convenience of ... Middleton is a great community and has so much to offer. So, it's a stunning property out there, it's off of the Lansing and North View area of Middleton. But, it's a 3, 951 square foot house.

Dave Burnett:                    Nice big home.

Thom Dallman:                  Big home, six bedrooms, three and a half baths.

Dave Burnett:                    Nice.

Thom Dallman:                  It is a two-story with a below grade do it has a basement in it. The Master's actually on the main level so if you don't wanna have to deal as parents with the stairs and stuff you can [inaudible 00:04:35].

Dave Burnett:                    Exactly. Make the kids take the stairs

Thom Dallman:                  Make the kids do ... Exactly. Or if you just want to send your guests upstairs you can do that too. This house is being listed at $525,000 and-

Dave Burnett:                    Which really when you think of the acreage-

Thom Dallman:                  Acreage-

Dave Burnett:                    ...size of the home that's a pretty good buy.

Thom Dallman:                  That's a huge ... That's a really good buy. Private cozy patio in the back with a fireplace on it, so you can enjoy those cool evenings out on your fireplace. Just really a great property that is a must see, built in 19997, and just ... Check it out.

Dave Burnett:                    I keep going back to that five acres, 'cause I know people to think, "If I could go somewhere where I don't have to deal with my neighbors-"

Thom Dallman:                  Right.

Dave Burnett:                    ...and five acres you can go out on that back deck and just enjoy yourself and not have to worry.

Thom Dallman:                  You have lots of room too. Lots of room to not have to worry about anybody.

Dave Burnett:                    Exactly. That'd be perfect.

Thom Dallman:                  Yeah.

Dave Burnett:                    What else you got?

Thom Dallman:                  So, the next property that we have that just came on this week is at 621 Togstad Court, that's T- O- G- S- T- A- D.

Dave Burnett:                    Togstad, that sounds right.

Thom Dallman:                  Sounds right, right? In Nampa, this is a three bedroom, two bath, 1,400 square foot home that just came on the market. This is out in the Dove meadows sub-division off of MidLand in [Lunstar 00:06:03]. Super clean home, move-in ready, it's got a bonus room, den on the single le ... It's all single level, so no happen to go up and downstairs, it's 1,472 square feet, and three bed, two bath. It does have the large great room with bolted ceilings. Split bedroom design so the master is on the other side from the other bedrooms, we talk about that often.

Dave Burnett:                    Yep.

Thom Dallman:                  How convenient that is.

Dave Burnett:                    It is, it's nice you get a little privacy.

Thom Dallman:                  Yeah. Plenty of parking, RV parking, fully fence backyard with a built in outdoor kitchen great for entertaining outside.

Dave Burnett:                    Yep, which is a huge deal.

Thom Dallman:                  Yeah, and all of this for $176,400.

Dave Burnett:                    Nice.

Thom Dallman:                  Good price for this home out in Nampa.

Dave Burnett:                    My only warning on buying this house is you'll have to tell people how to spell the name of the street.

Thom Dallman:                  Yeah. That is gonna be one of those where you do have to spell it out for them.

Dave Burnett:                    I know that from experience, I live on a street that I always have to spell it at least twice.

Thom Dallman:                  Yeah. Exactly. Once again that's 621 Togstad Court.

Dave Burnett:                    Nice.

Thom Dallman:                  So, definitely worth checking out for 17642 and for that kind of space out there in Nampa, it's a good price point for there.

Dave Burnett:                    Yep.

Thom Dallman:                  Definitely worth checking out. We've mentioned this next house before, it's a new construction by Innovative Custom Homes. It's at 3572 West Hansen Avenue, I just like to mention that again because it's gonna be such a cool house and it's such a convenient location. It's right there-

Dave Burnett:                    And a good builder.

Thom Dallman:                  Yep. That's right there on the corner of 36th and Hansen, which is just a few blocks down from state street. Heather is putting a lot of stuff into this house that's just gonna be a great, great home once it's completed. I'm trying to remember when she told me it was gonna be completed, I think she's looking at around the beginning of November-

Dave Burnett:                    This is a home that has enough land, I mean, there's off-street parking. Am I correct?

Thom Dallman:                  Yeah. So, this is one of those homes where she can ... She bought the house, it was a tear down. They were gonna originally leave some of the ... As she usually does with these remodels, she usually tries to leave some of the original framework in and stuff like that to keep the authenticity of it. But, this one for foundation issues and stuff they had to go in and redo everything. So, it's almost a brand new construction, and she actually reoriented it so that you don't have to pull in and out of the driveway unto 36. 'cause 36 can kinda-

Dave Burnett:                    It gets busy.

Thom Dallman:                  ...get a little busy especially during the school year. So, she's reoriented it, so you actually pull in and out on Hansen-

Dave Burnett:                    Nice

Thom Dallman:                  ...which is great safety issue or safety concern. It is on a quarter of an acre .25 an acre, which is a good size lot for being in the ... This is considered the North end. So, it's gonna have RV parking, it has an RV parking garage it's like a bigger garage base for RVs

Dave Burnett:                    Which it gets this time of year it's nice to have it parked inside.

Thom Dallman:                  Right. Yeah, for sure. Four bedroom, three bath with a huge bonus bar ... Bonus room, sorry. They're putting a wet bar in so there is so much potential with this home and it's gonna be really kind of ... As always they do such a great job.

Dave Burnett:                    Yeah.

Thom Dallman:                  So, four bedrooms, three bath, North end 2,000 square feet. She came on the market, sorry, at 549,000, which is once again great price for new construction in North end. It's difficult to find-

Dave Burnett:                    It is.

Thom Dallman:                  ...house in North end that have room on it and-

Dave Burnett:                    Off street parking.

Thom Dallman:                  ...and off-street parking.

Dave Burnett:                    'cause that is a big bonus there.

Thom Dallman:                  Yeah. Definitely something worth checking out and seeing what's available there, and we have people standing by the can get you in contact with Heather and walk you through where they're at in the process and everything. So, this is in that process of almost completion being built and stuff. So, definitely worth checking out.

Dave Burnett:                    I would like to mention too this is the last weekend for the Parade of Homes.

Thom Dallman:                  Yes. Yes. Parade of Homes is going on, last weekend. We have magazines here at the office, it's goes on today until 5 o'clock, and then tomorrow 11 o'clock to 5 o'clock. So, last two days to get out there and see what the builders have going on and stuff like that. I guess, you can't really swing by the office. The office is closed but you can go online at the crazyparadeofhomes.com website.

Dave Burnett:                    Or just go to coregrouprealty.com, I think there's a link on the website.

Thom Dallman:                  Yeah, we have a link there in the blog. Definitely worth checking out because they've got some great houses out there that are worth looking at.

Dave Burnett:                    Perfect. This is the Idaho Real Estate Buzz, Thom Dallman the co-owner, designated broker of Core Group Realty, one of the sponsors of this show and of course, Diversified Mortgage. We'll take to Michelle Guth coming up in just a few moments. Core Group Realty, that is the website, (208) 93 ... The website I should say is coregrouprealty.com, (208) 933-7777 give it a call find out why they say, "You get more with Core."



Seg #2

Dave Burnett:    This is the Idaho Real Estate Buzz, I'm Dave Burnett along with Thom Dallman and Michelle Guth with Diversified Mortgage, equal opportunity lender, joining us. Actually, she does every week in studio talk all things about mortgages and really it's a wide area, you think interest rates banks. But there's more to it than just that.

Thom Dallman:  That's why we let Michelle and her team handle this stuff.

Dave Burnett:    Well, one of the things coming up when we were talking during the break, one of the things coming up is that is on Monday October 16th which you don't go, oh immediately tax day. But October 16th is tax day.

Michelle Guth:  It is tax day. It is the deadline for those that have filed extensions for 2016 tax year.

Dave Burnett:    So if you filed an extension, Monday's the day that they have to be in by midnight. And that can affect a mortgage and a loan?

Michelle Guth:  It can. So we talked in past segments where we typically have to verify two years worth of tax returns. So for example if somebody has not filed their 2016 taxes, we got their fourteen, their fifteen, and then a copy of their extension for sixteen. But now once we pass October 16th, we now have to have to have those taxes which in turn could impact their ability to qualify if those taxes in fact show different numbers than what we used from the preceding two years.

Dave Burnett:    Now what if somebody is in the situation where they've got to work out with IRS to pay payments. Is that going to make a difference?

Michelle Guth:  It does. That's a good point, Dave. So, typically when they file if they do have anything owing, those funds have to be paid in full, and we have to be able to document them they've been paid in full. And the reason for that is that in many cases, for different mortgage types we will allow to have the client go into a repayment plan with the IRS. But the difficulty with the timing of where we're at in the current year is that you have to have a repayment agreement established which that can take awhile with the IRS. And then we also have to show that you've made 90 days worth of payments in that repayment plans.

Dave Burnett:    Whoa.[crosstalk 00:01:56]

Michelle Guth:  Exactly. So if you're planning on buying the house in the next couple of months that's not probably going to work because we have to have that 90 day payment history. So they need to be prepared that they're going to require they pay whatever taxes are due for last year in full when they file. And we'll have to have proof that it's been paid in full.

Thom Dallman:  So what I'm hearing is a little bit of if you're currently writing up a contract or under a contract and have a lender that you're working with, and you have an extension, you need to make sure that you file your taxes and come to the lender and say, "Here's what I've done. Here's what the taxes look like."

Michelle Guth:  Correct. Yeah good point, and I would assume that the lender does know that at this point, but in many cases, I've had clients that said I have filed an extension, we've gotten proof of that, and have asked, are the taxes going to be consistent for what we used to qualify for ... oh yeah, we've made more money this year than last year, so they should actually be better. You then get the taxes and unfortunately the account maybe got a little extra creative or you had some added deductions that you weren't anticipating, or forgot about, and now my income dropped, and I'm having difficulties qualifying.

Thom Dallman:  Exactly.

Michelle Guth:  So, the other thing we do is up to this point when a person is self-employed, for example, we will have them give us a year-to-date profit and loss statement balance sheet, because we want to make sure that where they're at this late in the year, that the income is consistent with what we're using to qualify. But again, what is on that PNL, when it translates over to the actual taxes and some cases is very different.

Dave Burnett:    So where we're at today, with Monday being the day that the taxes are due, and need to be paid up, some people that are in that situation may be in deep trouble and may need to get ahold of their mortgage company Monday morning, and come clean where are things at. But how do we avoid that for the future, going forward as people that are taking out a loan?

Michelle Guth:  Well, just again, full disclosure to the lender, and you cannot hide anything. We're going to find out. I love the optimistic outlook of some of my clients, but sometimes I'm that optimism we'll get them into trouble when filing their taxes.

Dave Burnett:    Well when it comes to taxes, sometimes it's difficult to guess because then it comes back from the tax accountant, or if you do them yourself, it's like oh my goodness, I owe a lot more than I thought I was going to because of whatever reason. So, I guess doing a home loan and taxes all at the same time is kind of rough thing to do.

Michelle Guth:  It can be, but I have also mentioned in the past that if you're working with your lender, and you're getting ready to file your taxes and you're self-employed, let them do a tax analysis on it before you file your taxes. Because in some cases they could say you know what, we're now short some income, so maybe you want to reconsider filing as much in your deductions, and take the tax hit, so that you can qualify and claim additional income. So we can in some cases correct the issue before they're filed. But once they're filed those are the numbers we're working with.

Dave Burnett:    And again, in case you're tooling down the road going Uh-Oh, October 16th midnight, that is when those that have extended tax filings, those are due coming up here in just a couple days. So, let's go back to this whole thing, and again, I just want to reiterate this. You have to have 90 days worth of proof of payment to the IRS to show you're on time to those payments?

Michelle Guth:  Correct. And you cannot prepay it, so you could into repayment plan, say I'll just prepay 90 days worth. It does not work that way. They want to see 90 days of consistent payment history.

Dave Burnett:    So again, it seems to be reoccurring message in what Michelle is saying. Consistency is a big deal.

Michelle Guth:  Indeed.

Dave Burnett:    So that's the bad news. October 16th, that is a tax day.

Michelle Guth:  Well, and the other thing to consider if you do go into that repayment plan, let's assume we have that. Maybe you're doing new construction, we're not closing till January. And we have that ability to get those 90 days in. You still to give the lender full disclosure because that repayment, say it's you know, two hundred and fifty bucks a month, that has to go into your debt to income ratio, and you also may no longer qualify, if we have the added debt expense into your ratio. So, you have the flexibility, but it may not be an option anyway if in fact it is going to skew our numbers to the point you no longer qualify.

Dave Burnett:    But it is a good time to take out a loan. I want to touch just a little bit right now as far as lending and banks and everything appears to be going fine? They haven't raised the interest rate in awhile.

Michelle Guth:  They've been holding pretty steadying, absolutely. So still an incredible time to get a mortgage, there's still close to historic lows, I think we're extremely blessed with where the market has continued to go. And even for inventory, Tom correct me if I'm wrong, but I'm seeing that we are starting to get more inventory on the market? There's a little bit less of the competitive nature?

Thom Dallman:  Yeah, we're starting to see a lot more activity, actually. [crosstalk 00:06:32]

Michelle Guth:  You still see multiple offer situations, but time on markets a little bit longer, so it's taking out a little bit of that frenzy, so it's of my opinion that this is a great time of the year to buy, maybe one of the best time of year to buy, because a lot of people are saying we're just going to hunker down for the winter and wait till the Spring. Get out there and look at houses now.

Thom Dallman:  Right, there's still a lot of buyers coming in to town, and they're still people that need to sell and move. We're constantly talking to people that are moving out of town for whatever reason. Doing this. Things happen. Life happens. People still need to sell. So, it's still a great time to buy.

Dave Burnett:    And if you've missed segments where we've talked to Michelle before, or being it a new time now might be hitting a new audience. Getting preapproved, that is just the key.

Michelle Guth:  Do go through the full gamut with your mortgage lender, they're going to do a detailed analysis of your credit, your income, your employment history. So, there's a lot of moving parts and you definitely want to go through that detailed process versus just a quick little pre-approval you might try to do online. Go through the full process so that you have the peace of mind that when you're handed a pre-approval letter, that in fact it's a credit approval, and they have done all their due-diligence so that you can move forward with your home shopping experience without any nervousness that something may go awry.

Dave Burnett:    The name of her company, Diversified Mortgage. She is Michelle Guth. Could you do me a favor? Could you tell me a little bit about yourself, about the company, for those who just don't really know what is diversified mortgage?

Michelle Guth:  Well, we are a mortgage bank. Difference between, a lot of people think, mortgage broker, mortgage bank, well, we're really no different than going to a traditional bank other than the fact we do not have FDIC deposits. So we do our own underwriting, we fund our own loans, we have the ability of handling our own servicing, but where I feel like we are quite different is that you're gonna get that personal touch from a team that knows your transaction inside and out. We don't send your file off to a fulfillment center like you experience with some large institutions. Everybody in my office knows who you are and we're here from the beginning, and we're there at the end sitting at the closing table with you. So, we pride ourselves with building that relationship with our clients, and it's been a great, great haul, I've been doing this since dirt was discovered.

Dave Burnett:    This isn't you're first week in the business?

Michelle Guth:  Second week, Dave.

Dave Burnett:    Is it the second? Well, you know Tom the thing with Michelle I'm always stunned with is that, we can throw anything at her and she has an answer.

Thom Dallman:  She does. That's why I've been partners with her for so long. But yeah, just adore being able to go to her with any questions I have, and she'll come back with what she knows.

Dave Burnett:    The other thing that I like to point out the fact is that if you're dealing with another real estate company, and they say, yeah, we want you to go over to this lender, you don't have to take the person they talk to. If somebody wants to go to Diversified Mortgage, they can contact you and request you, correct?

Michelle Guth:  Absolutely. And I encourage people to get second opinions. Even my own clients, you know I tell them if you feel the need to get a second opinion, I encourage you to do so but I'm always confident they're going to come back around because when they see how much detail we take and time to really go through the process with them, we really build that trust with them Absolutely I think it's worth getting a second opinion.

Dave Burnett:    So, full disclosure, that's important to do. Make sure you're totally open and honest with your lending agent. And of course, again, pre-approval, pre-approval, pre-approval. Important to do. How do they get ahold of you Michelle if they want to talk with you at Diversified Mortgage? How would they do that?

Michelle Guth:  Give us a call at the office. Our number is 853-7878. You can also visit our website which is DMGloans.com

Dave Burnett:    And of course, getting the financing for the home, that truly is the thing, the motor that makes the car go. Because without the funds you're not going very far.

Michelle Guth:  You're not getting the realtor car looking at the houses.

Dave Burnett:    Thank you, Michelle, we do appreciate it. We'll continue on the other side. This is the Idaho Real Estate Buzz, being brought to you by Diversified Mortgage, and Core Group Reality. Call today: 208-933-7777. Find out why they say: You get more, with Core.




Seg #3


Dave Burnett:    This is the Idaho Real Estate buzz, I'm Dave Burnett, he is Thom Dallman the co-owner, designated owner of core group realty. Coregrouprealty.com that is a website, 208-933-7777 that is the phone number for you can call. You can call it right now if you want to.

Thom Dallman:  [crosstalk 00:00:17] we have people standing by.

Dave Burnett:    Yep. If you wanna get together with an agent this weekend and go take a look at homes, you can do that. If you wanna just get online, have question about that they can answer those questions for you as well.

Thom Dallman:  Yep. I have a quite the selection of agents if you are looking. We can definitely get you someone out there to show you something.

Dave Burnett:    Well on the good news is, the volume of properties that are for sale out there is beginning to come back up after we had a drought over the summer, just new listings not a lot to [crosstalk 00:00:47].

Thom Dallman:  Exactly. Yeah, we're seeing an uptake in activity, which is really good, we kinda needed that. So, I think people kind of got settled in for the school year and now they're kind of, I don't know, looking at new stuff and got their you know, got their thoughts going again on stuff they wanna do and stuff. So ...

Dave Burnett:    You know, I think there's a confidence. People now, they're beginning to see that the, you know, the financial market is kind of solidified. It's a good strong market, I think there's just all of the election stuff is all behind us and so for the most part people are feeling fairly confident about their world.

Thom Dallman:  Exactly. Yeah, I think so too. And it's good to see because yeah, it's been a struggle for home buyers out there who, you know, with that lack of inventory and that competing you know, competing on houses and stuff like that. Still, kind of going on, on you know, certain price points. We still are low on inventory on certain price points especially you know, those homes under 200 thousand. But, yeah it's nice to see. Nice to see kind of a loosening up of a little bit. So, it'll be curious to see of over the next couple months if that continues. And how that affects home prices and stuff like that.

Dave Burnett:    Yup. One of the things that we did, and when I said we, my wife and I did this past year. We made a decision. We decided that we weren't going to sell our home. We were just going to stay in it, we're going to pay it off, talk to Michelle Guth, we gotta refinance, got our loan shortened up, we're gonna pay it off. And we also took a little extra money to do some work in the house. I wanted to talk to ...

Thom Dallman:  [crosstalk 00:02:13] remodel stuff.

Dave Burnett:    Exactly. I wanted to talk to you a little bit about, you know, what are some of the things that are good to do? What are some of the things bad to do to increase the value of my home?

Thom Dallman:  Oh sure, it's one of those topics that I like to talk about because, so many people have these ideas of just throwing grand things into their homes. That may not necessarily be good for resale, you just can't get the value back out of 'em. Just thinking of one thing we talked about, swimming pools. Swimming pools are one of those ideas of, "Oh my gosh, swimming pools are so cool. I'd love a swimming pool. How much does that increase the value of my home?" Technically, swimming pools do not increase the value of a home very much because of the fact that it shortens your buyer pool.

Dave Burnett:    So to speak.

Thom Dallman:  Yeah, so to speak. Because there's not ... Yeah, buyer pool, swimming pool. But there's not as many people in the marketplace to buy homes with pools of because of the maintenance.

Dave Burnett:    They're a lot of work.

Thom Dallman:  Yeah, they're a lot of work. They don't want to deal with the maintenance on it. So, pools are one of those subjects where I've said it in the past, you know, probably say it again. You need to evaluate how long you're gonna be living in the home and it's more of a personal value to you and so forth. Just like I've had people ask me like, "Oh I think I really want to like put a bonus room in my attic. I have a space in my attic that just goes unused. We just throw our Christmas tree up there and what not. But, I'd love to do a bonus room in my attic." So, that's a tough one 'cause yes it will increase your square footage and can add a little bit of value to your house. But the cost of restructuring the ceiling, the roof if you will, or the ceiling. The flooring of the attic to be able to support weight up there.

Dave Burnett:    As well as the stairway.

Thom Dallman:  As well as the yeah, you have to get access to it. You have to put in a stairwell. Does your house have the area to be able to put stairs up there? And then, you know, how much space do you truly have? Sometimes those attic spaces feel really big but ...

Dave Burnett:    They're not.

Thom Dallman:  Once you get kind of, yeah, the walls up and the insulation up, and the sheet rock up, it really kinda dwindles the space quite a bit.

Dave Burnett:    It truly is a man cave.

Thom Dallman:  Yeah, right.

Dave Burnett:    It's not quite what you thought it was gonna be.

Thom Dallman:  So, you know, we've had people say, "How about if we just raise the roof a little bit?" And that's pretty cost prohibitive to do something like that and once again, it falls back to the cost of the whole project versus how long you're gonna live in the house. And what the extra square footage can do for value, and so a real estate agent will be able to kind of, connect you with a remodeler who can give you bids on how much it's gonna cost. Look at the future ... You know, kind of look at the ... What the additional value it would add to your home and your area and stuff like that, so.

Dave Burnett:    Well in the past I would say there were two areas that you can't go wrong in. I'm gonna say now there's three areas. Let me throw these out, see if I'm right or wrong.

Thom Dallman:  Alright.

Dave Burnett:    When it comes to remodeling, when it comes to improving within realistic limits you can't go wrong with a redo in the bathroom, you can't really go wrong with redo in the kitchen, and I would say you can't really go wrong now with redoing the patio and putting an outdoor cooking facility in there. Am I right or wrong? Maybe it's my personal taste but I'd love to have a home with an outdoor kitchen.

Thom Dallman:  Yeah?

Dave Burnett:    I would think they would add that.

Thom Dallman:  There are people that would like that, then there's people that are like, "Ugh, that's just extra space to clean." Yeah, outdoor kitchen areas are one of those things, I personally like it ...

Dave Burnett:    They're a hot commodity right now.

Thom Dallman:  And they are a little bit of a hot commodity. I don't know that people would spend a lot more money on a house to have it, but it is something that when people go through the house that are like, "Oo that's nice to have."

Dave Burnett:    It's a selling feature.

Thom Dallman:  Yeah, it's a selling feature. And so, I don't know that it really increases the value of a house per say.

Dave Burnett:    Well let's put it this way.

Thom Dallman:  But it increases the desirability if that makes sense.

Dave Burnett:    For me, if I had choice between a bonus room in the attic and an outdoor cooking facility ...

Thom Dallman:  It's gonna make much more sense.

Dave Burnett:    I'm going with the patio.

Thom Dallman:  Right? It makes much more sense for that.

Dave Burnett:    Yeah.

Thom Dallman:  Yeah, so as far as the kitchen and bathroom remodels, yes that is an area that increases values of homes, if you do it right. You don't want to over improve.

Dave Burnett:    Okay, and see I've talked about the fact that we redid our kitchen and I mean we did a kitchen. I'll have to give you photographs of this 'cause we did it. But we also intend ... I intend to stay in that house until they carry me out of it.

Thom Dallman:  Yeah, exactly.

Dave Burnett:    I mean that's my intention.

Thom Dallman:  So, go all out. Put in the nicest upgrades that you can, especially if you plan on living there for you know, 20 plus years. Go all out and enjoy the luxury of that for yourself. But, if you're looking at it as an immediate return on value later, putting in some of those higher end upgrades and stuff like that could actually cost you a little bit more, that you're not getting the value out of it. So, that's another reason that's why it's really super important to talk to a real estate agent that can look in your area and say, "Look, here's what the homes are selling, here's the upgrades that you have in your neighborhood, you don't want to out build yourself in that neighborhood and put you in a higher you know, price range than your neighborhood can support." So, you really wanna kind of keep in mind some of those ... Not to mention the functionality too, of kitchens and stuff like that.

Dave Burnett:    True.

Thom Dallman:  You know, sometimes getting those bigger appliances in there means cutting down on function ability and space that you walk around in. So, you really do have to be somewhat careful. But, yes those are two areas that tend to be a better spend on money. Especially in the bathrooms, keeping in mind, always make sure that you are thinking of functionality. I've seen a lot of bathroom remodels where they put, they're like in love with pedestal sinks. So, they put in pedestal sinks and then don't think about cabinetry. And people have toiletries and stuff like that. But they wanna ...

Dave Burnett:    And got stuff they wanna store.

Thom Dallman:  It's like all of a sudden you look around this room with this pedestal sink and no storage. It's like, "Where am I supposed to put my excess toilet paper in?"

Dave Burnett:    All the things you don't wanna talk about that's gotta be stored.

Thom Dallman:  Exactly. You gotta talk about it because functionality is super important. I went into a remodel once where the person that was doing the remodel was adamant that they had to have a bathtub in their bathroom. And so, they created this awkward bathtub that was in between a shower and the toilet. They enclosed the toilet but it was long so that when you're lying in the bathtub, you're literally feel like you're almost in a coffin to be perfectly exact. Because there's two walls on both sides of you, straight up. And all you had was like a little six inch ...

Dave Burnett:    To get in and out.

Thom Dallman:  Spot on each side, plus the front of the bathtub to get in. So, it's just an awkward design and not something that was necessary in a home like that.

Dave Burnett:    So as a real estate agent you went in and went, "That's interesting."

Thom Dallman:  Yeah, that's an interesting idea and you know, I personally would have turned the bathtub the other direction and did a combination bathtub shower.

Dave Burnett:    But that's the way they did it.

Thom Dallman:  But, they really wanted it separate so ...

Dave Burnett:    So, there are some areas and I guess cosmetics you know, when it comes to carpet, painting, you really can't go wrong. Unless you know, depending on the colors.

Thom Dallman:  Depending on colors, depending on you know, upgrading you know, to those really super plush carpets sometimes can you know, deter people putting you know, carpet in bathrooms is never a good idea.

Dave Burnett:    Yeah, well that's true.

Thom Dallman:  But it happens on occasions.

Dave Burnett:    But it is a good idea?

Thom Dallman:  So, but yes. But yeah, carpet you know, especially depending on the price point and what you want. Carpet can be a good idea, obviously not wanting to ... Hardwood floors are more desirable than carpets so not wanting to cover up hardwood floors if you have hardwood floors.

Dave Burnett:    But something to be aware of with hardwood floors, they are vulnerable to dents, scratches, dings, scraps, you might want to think about a durable laminate of some sort.

Thom Dallman:  Yeah, exactly.

Dave Burnett:    So, there's a lot to think of when it comes to wood.

Thom Dallman:  There's so many options and once again going back to your particular house, your neighborhood and not over remodeling your house, making it over what the rest of the houses are like in your area.

Dave Burnett:    And that's why talking to a good real estate agent can help you find out what's going on in our neighborhood.

Thom Dallman:  Exactly.

Dave Burnett:    There you go. Alright, we're gonna continue on the other side. This is the Idaho Real Estate Buzz brought to you by Diversified Mortgage and the folks at Core Group Realty. Coregrouprealty.com that's a website, you can find out why you get more with Core.


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