Today on the Real Estate Buzz tune in while Dave and Thom discuss the current inventory in the valley and talk about our current listings. Stay tuned for Michelle Guth of Diversified Mortgage, talking about the do's and do not's of getting a home loan. Later Dave and Thom fill us in on the current supply and demand situation as well as discussing the opportunities you are giving up when you choose "for sale by owner".

Seg 1


Dave Burnett:                    This is the Idaho Real Estate Buzz. I'm Dave Burnett along with Thom Dallman. Thom is the co-owner and the designated broker at Core Group Realty. CoreGroupRealty.com, the website for you to go to find out all things real estate. Thom welcome back again.

Thom Dallman:                  Thank you. I appreciate being here. It's always fun to have these moments with you to help educate everybody on real estate and give them information that they can find useful.

Dave Burnett:                    Well you know, one of the things that I really like to do at the top of the show because right now, and in fact, I saw where real estate sales are down in part just because of lack of inventory.

Thom Dallman:                  Oh my gosh.

Dave Burnett:                    There's not a lot of inventory out there, which in some ways makes it as tough for the agents as when it's bad times.

Thom Dallman:                  Exactly.

Dave Burnett:                    But Core Group, of course you have the website, CoreGroupRealty.com, and you have a number of new listings ready to go this week.

Thom Dallman:                  Yep, yep. This week we've actually had few new listings come on, which we're really super excited about to be able to have some options out there for people, especially in those price points under $200,000. That's where the big struggle is for inventory. It's just they're being snatched up. There's just not a lot of it out there, and for those first-time home buyers, for those investors that are looking for rental properties, they're somewhat hard to come by a little bit. We have a couple of those that have actually come on this week that I'd like to talk about.

Dave Burnett:                    Whatcha got?

Thom Dallman:                  The first one kind of starting out in New Plymouth. We'll work our way into Boise, but out in New Plymouth, we have a new listing that's coming on that's a three-bedroom, one-bath, 1,000 square feet. Once again, great starter home or great investment property for rentals or whatnot. It's been actually a rental for the last 10 years and has had no vacancies in it, so we're happy to report that part about it. Anyways, this is coming on at $95,000 out in New Plymouth. It's 507 East Idaho Street in New Plymouth, so if you are in the market for investment properties, you probably know then there's not much that comes on under $100,000 that actually has three bedrooms in it. So great opportunity for a property here to invest in, for sure.

Dave Burnett:                    At that price point, there are people out there that could scratch a check for it.

Thom Dallman:                  Yep. Exactly.

Dave Burnett:                    Which would be nice to avoid having to finance, but that is an incredible ... And that is in New Plymouth.

Thom Dallman:                  That's in New Plymouth.

Dave Burnett:                    So, if you're going to CoreGroupRealty.com, under specifications, put down New Plymouth, and it'll draw that property right up.

Thom Dallman:                  Yep, 507 East Idaho Street, so great property, built in 1935 on .15 of a lot, so standard lot, so not a lot of maintenance to have to worry about.

Dave Burnett:                    Nice.

Thom Dallman:                  Yeah. Great property to check out.

Dave Burnett:                    What else you got there?

Thom Dallman:                  Moving into Nampa, we've got 1108 11th Avenue Street. This a two-bedroom, one-bath, 1,000 square foot as well. It's 1,032 to be exact. But this came on at $159,000, so once again great price point under $200,000. Anything under $200,000 is awesome to find in this marketplace. This one has actually stainless-steel appliances. It has a marble shower with glass doors, so it's a really nice renovated home. For being a two-bedroom, one-bath at 1,000 square feet, built in 1925 but recently remodeled, got some great options there for you, .11 of a lot, so 1108 11th Avenue South in Nampa is where this one's located.

Dave Burnett:                    And being right there on 11th Avenue, you're close to all the action, close to-

Thom Dallman:                  Close to everything.

Dave Burnett:                    Everything you need to be.

Thom Dallman:                  Yeah, exactly. All the restaurants in downtown Nampa, especially The Brick. If you haven't had a chance to go to The Brick, go to The Brick.

Dave Burnett:                    Unsolicited endorsement.

Thom Dallman:                  Unsolicited plug, but that's one of my favorite, especially Sunday brunches while they're doing one, is one of the best brunches places.

Dave Burnett:                    Okay, I may go check that out, but if you go, tell them Thom Dallman at Core Group Realty sent you in there.

Thom Dallman:                  Exactly.

Dave Burnett:                    That's nice.

Thom Dallman:                  Yeah, 11th Avenue, great once again, starter home, rental home, whatever you need it to be. It's there for you. It's like I said, newly renovated. It actually has RV parking in it as well.

Dave Burnett:                    Nice.

Thom Dallman:                  Two sheds with electricity in them, so whoever wants to use their shed, husband or wife for gardening or you know spouse or partner.

Dave Burnett:                    Storing your stuff.

Thom Dallman:                  Yeah, right? You got lots of space there to do that.

Dave Burnett:                    Excellent. Up next on the list.

Thom Dallman:                  Up next, we're gonna go down to Pierce Park and State Street, off of State Street and Pierce Park to 6535 West Dufferin Court. This is a three-bed, two-and-a-half bath, two-story, 21,000 square feet, $314,900 is what that came on the market as. The HOAs do include landscaping with front and back mowing as well as fertilizing, spraying weeds and trimming and so forth. This is a high-end patio home that's near Park Place. Talk about the location, like being convenient to the Glenwood State area-

Dave Burnett:                    You got all the Green Belt down there.

Thom Dallman:                  Yep. Easy access to the Green Belt, easy access to downtown. Great opportunity here, and for those who don't want to deal with maintenance of the lawn, yeah, hello. Sign me up for that.

Dave Burnett:                    And you're really, there off Pierce Park is just a great historic area of Boise where a lot of people don't know what is now Plantation Golf Course, at one time was a lake.

Thom Dallman:                  Oh really?

Dave Burnett:                    People would ride a trolley out-

Thom Dallman:                  I don't think I even knew that.

Dave Burnett:                    Yeah if you look right near there, I think it's Lakeside Boulevard right next to Plantation, which people go, "Lakeside Boulevard? There's no lake." Well yeah, there used to be. Because it was a lake, people would ride the trolley out and go ride on the boats out there, so very historic area of Boise.

Thom Dallman:                  That is something I did not know. Thank you for that. I'm gonna use that.

Dave Burnett:                    Yeah, well I can give you more Thom.

Thom Dallman:                  I know you can. That's what I love about doing this with you is because you do have some great information about the-

Dave Burnett:                    You're nestled right between State Street, which used to be called Valley Road.

Thom Dallman:                  Okay.

Dave Burnett:                    You have Hill Road, and then they had Valley Road, but they changed the name of Valley Road to State Street.

Thom Dallman:                  Oh okay.

Dave Burnett:                    So, there you go.

Thom Dallman:                  Interesting. Is it because Valley Road went kind of along the valley?

Dave Burnett:                    It did, and Hill Road was right along the base of the foothills there.

Thom Dallman:                  Oh, interesting stuff.

Dave Burnett:                    Yeah, so Hill and Valley Road.

Thom Dallman:                  Interesting stuff to know.

Dave Burnett:                    Little more history for you, but that really is ... Pierce Park is a great area.

Thom Dallman:                  Oh yeah, it's awesome over there. I don't live too far from there. 6535 West Dufferin Court was that listing, so check it out. And check out, while you're at it, 2749 North Lancaster Drive. This is a three-bedroom, two-bath, single-level. It does have an upstairs bonus room, so it's 2,217 square feet. This house did come on at $425,000. Interesting aspect of this house is it's owned by Heather Echevarria, who is Innovative Custom Home Builder here at Core Group. Her superintendent actually owns this house. He built it back in 1984, when he was into construction and so forth. He's built it, lived in it, and maintained it, and just recently went through and remodeled the whole thing. It's a beautiful home. It's right off of Hill Road on Lancaster. So I mean talk about a great location, you know, a mile from Camel's Back, a mile-and-a-half from 13th Street and Hyde Park.

Dave Burnett:                    Into the downtown area.

Thom Dallman:                  Yeah.

Dave Burnett:                    And really not that far from Optimist Fields, and then to Highway 55 to go to McCall.

Thom Dallman:                  Pretty much everything.

Dave Burnett:                    You got it.

Thom Dallman:                  So great location. It's on the foothills, so once again, just meticulously cared for, recently remodeled, great opportunity to have a North End home in a prime location. That's 2749 North Lancaster Drive, three-bedroom, two-bath. Now there is potential that this could be sold this weekend because we did a big Broker Open yesterday on this property so-

Dave Burnett:                    Wait, is that a golf tournament? A Broker Open?

Thom Dallman:                  No, no. That would be fun, however, a Broker Open is when we kind of invite the real estate community, all the real estate agents, all the brokers and so forth to come through the house. We had a special kind of showing for them Friday from 10:30-12:30. We set up snacks and drinks and had some door prizes for everybody who went through actually three houses. We did three houses. We had our listing on North 21st Street that Heather has as well, Innovative CusThom Homes has. We have that one available, as well as this one on Lancaster. Then the Real Estate Dream Team here has a house on La Fontana as well, that we've talked about in previous episodes, available that's kind of off of Cartwright. We did this big event, and had all these brokers and agents come through and check out the three houses, and threw it out on social media too, so that the public could come through if they wanted to as well.

Dave Burnett:                    Not to put pressure, but hurry.

Thom Dallman:                  Yeah, right? Hurry. This might go under contract really quick this weekend.

Dave Burnett:                    All right, very good.

Thom Dallman:                  If you are in the market, please reach out to us, reach out to your agent if you already have one, and get a showing. $425,000 is the price point, three-bedroom, two-bath, 2,200 square feet on Lancaster, 2749 North Lancaster.

Dave Burnett:                    Sometime when we're talking about Core Group's social media, the different ways you market, the different way you do things with Core Group, I'd like to talk more about that Broker Open.

Thom Dallman:                  Yeah, sure.

Dave Burnett:                    Because I'm sure there's gotta be logic behind it and everything, but we're out of time this segment. But maybe coming up in the future, we could talk about some of the different things that you do with Core Group to help move and get a home sold.

Thom Dallman:                  Oh definitely. We can definitely go through that.

Dave Burnett:                    This is the Idaho Real Estate Buzz. You can always call Core Group at 933-7777. Check them out at CoreGroupRealty.com. CoreGroupRealty.com is the website you can go to. By the way, this show is brought to you by Diversified Mortgage, equal opportunity lender and Diversified Mortgage, call 933-7777, 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 of Diversified Mortgage, equal opportunity lender, joining us in studio again today. You gave me the list of things we're going to talk about today, and I saw immediately we're looking at some "do be's" and "don't be's."

Thom Dallman:                  Whoa, "do be's"?

Michelle Guth:                  May, how about do's and don'ts, maybe?

Thom Dallman:                  This isn't Oregon. I don't know if "do be's" are allowed.

Dave Burnett:                    The area's Idaho. Let's start with this, with some of the "do's."

Michelle Guth:                  "Do's."

Dave Burnett:                    In other words, a "D-O-apostrophe-S-B-E."

Michelle Guth:                  Perfect.

Dave Burnett:                    Not "E-E's."

Thom Dallman:                  Not "Do-E's"

Dave Burnett:                    Some of the do's if you're getting a home loan. Michelle, welcome once again.

Michelle Guth:                  Thanks, Dave.

Dave Burnett:                    If somebody was getting ready to get a home loan, there are certain things you want to do, and let's start on that positive note. What are the things we want to do?

Michelle Guth:                  Key item, of course, is credit. Quite frequently, I'll have people ask, "What should I do to have my credit in the best possible position that I can?" One of the things is credit mixture. We've talked about that on previous segments. We want to ensure that you have different types of credit, so having great credit with just a car loan, for example, is not allowing you to maximize your credit score. We need different types. That different type is revolving credit. That is a key item on credit.

Thom Dallman:                  That would be credit cards?

Michelle Guth:                  Exactly, so anything that's a variable rate line of credit that you can access and adjust from month to month is a type of account that you need to have on your credit report.

Dave Burnett:                    Let me ask you this. Let me slow you down a bit, because we're told by those financial "do be's," the financial guys that know, you don't want credit card debt, you don't want to be mounting this. But you do want some credit card debt?

Michelle Guth:                  You absolutely want some credit card, not necessarily, I wouldn't say debt, credit card access and utilization. I would agree with them that you do not want to end up incurring a lot of credit card debt, obviously, for reasons such as high interest rates, and so forth. But you do want to have that activity on the credit cards. For example, again we've talked about, you do not want your balance ever to exceed 30% of your available limit. But ideally, having that access to that credit card, whether it be just charging a tank of gas, and paying it off after the statement cycle, so you don't incur interest, is great, just to have some activity, at least once every 90 days, to keep that account active and current.

Dave Burnett:                    That 30% rule, that's tough, because it's easy to ... just one more thing, and there's always an emergency. It takes a bit of discipline.

Michelle Guth:                  It does, and I've had people also that like to utilize them for the points, and they are disciplined. They will pay them off in full every month, but what they don't realize by maxing out that credit card, even though they're paying as agreed, they're really hurting their credit score.

Dave Burnett:                    By running it up, but it off before that, it doesn't help you?

Michelle Guth:                  Correct. Yeah, if you [inaudible 00:02:49] close to the limit, it's going to start impacting your credit score. That's key number one. Other items are not going out and acquiring a lot of debt, or even inquiries in general, if you anticipate you're going to be requesting a mortgage in the next six months.

Dave Burnett:                    Okay, so don't apply for any credit.

Michelle Guth:                  Exactly. You go to the department store card, and they're offering you that special for 10% off, but you know you're going to be applying for a mortgage in the next few months, don't do it. Those inquiries also drop your credit score. There's several different key factors that impact us when we're trying to run an electronic approval. They're looking at one of those items being, are they recently trying to acquire and accumulate debt. That is considered a risk factor, so avoid that.

Dave Burnett:                    Just stay with your established debt, that's a "do." The debt you have, keep established with it, keep paying it off as you go, and keep it under 30%.

Michelle Guth:                  Correct. The only exception to that would be is if you do not have much for credit, then yes, I would say, probably get those accounts established, and then let them cycle, and basically mature, in the preparation that you're ready to go in about six months.

Dave Burnett:                    Okay, so six months, more or less?

Michelle Guth:                  Correct. It typically is four to six months’ worth of payment history, before you really start to see the benefits of it on your credit report.

Dave Burnett:                    Okay, four to six months. Alright, other do's?

Michelle Guth:                  Other do's, is job stability, so ideally, if you have a job that's somewhat flexible with hours, it's important to try to keep your hours consistent, working the maximum number of hours that are available to you, so we do have that consistency employment. We don't want to see a lot of job-hopping. FHA, for example, does not want to see more than three jobs in the preceding 12 months, so that can pose an issue-

Thom Dallman:                  [crosstalk 00:04:27] interesting.

Michelle Guth:                  To qualify for FHA financing, for example. Try to keep the job stability in place, as well.

Dave Burnett:                    I don't really want to see three jobs.

Michelle Guth:                  No, definitely.

Thom Dallman:                  Yeah, right.

Dave Burnett:                    It's not good. Let me ask you this. When it comes to working hours, does working overtime help? Do they consider overtime as something special and unique?

Michelle Guth:                  Overtime does help, if you've been receiving it consistently for two years. Bonuses, overtime, commissions, they want to see a two-year history, typically, in order to give you credit for that. There are some exceptions to it, but it's typically the two-year rule. If you are working overtime, or again, commissions, bonuses, and we've had a two-year history that we can absolutely utilize that toward your income.

Dave Burnett:                    But if you just add, "Hey, I had a $5,000 bonus this past six months," that's not really going to matter for one time.

Michelle Guth:                  Correct, we're not going to give you credit for it, but it's a great compensating factor.

Dave Burnett:                    Okay, very good. Other do's?

Michelle Guth:                  Other do's is primarily sit down with a mortgage lender right off the bat. Again, if you are thinking of purchasing a home, you want to have that consultation to make sure that we are advising you to take all the appropriate steps, so you're in the best possible position to buy a home, once you're ready to do so.

Thom Dallman:                  Do you advise your clients to check their credit score every so often, just to make sure that there's nothing surprising that pops up on them?

Michelle Guth:                  Absolutely, all consumers, I think, should be checking their credit. It's a great point, Thom. There's different agencies that you can check. One of them is Annualcreditreport.com, which is one of the government entities. Again, to reiterate, when you pull your own credit, it does not count as an inquiry. Under most bureaus, they'll allow you to pull once every six months from each of the three, so basically pull one every 18 months. You're cycling through each one of the three repositories. By all means, I would encourage you to pull at least every six months-

Thom Dallman:                  Six months.

Michelle Guth:                  And at a minimum, once a year.

Dave Burnett:                    Speaking of the three, what are the three most commonly used credit agencies?

Michelle Guth:                  Equifax, TransUnion, and Experian are the three repositories that all mortgage creditors will pull, and we'll take the middle score of the three. There's multiple credit agencies that you can pull reports from, but it's the three repositories that are actually reporting from each of the agencies.

Dave Burnett:                    What's the difference?

Michelle Guth:                  They each somewhat have different algorithms that they use to weight importance on credit score, but there's quite a few similarities, as well, which is why we'll take the middle of the three. We don't average the three. We take the middle of the three.

Dave Burnett:                    It's like the Olympics, throw out the high, throw out the low.

Thom Dallman:                  Exactly.

Dave Burnett:                    And take the average score.

Thom Dallman:                  The middle score.

Michelle Guth:                  The middle score. Thank you, Thom.

Dave Burnett:                    Okay, I guess it wouldn't be the average. You guys are keeping me on track today. We have these important things to do, and that is to make sure you're not overusing your credit cards, to make sure that you're staying current on your payments. Does it help at all to pay ahead? Does that show in your credit report? If you're paying 15 days early on something, does that show, or it just shows it as on time?

Michelle Guth:                  It'll show it as on time, but if you're paying early, then you're also knocking that balance down, which is a good thing.

Dave Burnett:                    Okay, alright. Other things that we should watch for and things we need to think about ahead of time, or while we're in the process of getting a loan?

Michelle Guth:                  Again, I think it's just the timing is most important, making sure that we've done everything we possibly can as early on in the process, so that we can optimize that credit score. Mortgages are heavily credit score driven. The higher we can get the score up by doing all the practices we just talked about, is definitely going to help get us a boost in score, which is going to help us get a better rate, and possibly a better loan program. Some of the programs we've talked about through our state bond agency, it does have minimum credit score requirements, in order to get some of the down payment assistance programs. Again, it's a key item to take that very seriously, to make sure we can optimize what options we have available.

Dave Burnett:                    When it comes to credit scores, can you break down, more or less, and I know they all use a different system, but what would be considered bad credit, okay credit, good credit, and excellent credit. Is there a formula for that?

Michelle Guth:                  Not necessarily a formula, per se, but ideally, if we see a credit score of 720 or above, we're doing cartwheels. We love to see 720 or higher.

Dave Burnett:                    That makes it much easier for you.

Michelle Guth:                  It does make it easier, and definitely once we get to that threshold, you start seeing a drop in interest rates and the mortgage insurance premiums. Once we get below a 620 credit score, that's where it really starts to get challenging. Even our bond program has a limit of 620 to even do any of their programs. But FHA will allow you to go lower than that, but it's really difficult to get an electronic approval once you start going below that 620 credit score. In most cases, you're required to have the electronic approval to even proceed.

Dave Burnett:                    If somebody, let's say they went through a rough patch a few years ago or over the past couple of years, I would assume then you're advising come on in, get the credit score run, and your folks will talk to them about how to get that improved over the next six months to a year?

Michelle Guth:                  Correct, absolutely. We give them the best guidance we can to try to get them on the right track, so they're in a position to be able to qualify.

Dave Burnett:                    We've talked about this in the past, but for a lot of people, credit scores, it's something, for some people, very personal. They don't like talking about their finances. They don't like doing it. But it's a cold, hard reality when it comes to getting a loan.

Michelle Guth:                  It is, and again, no judgment. We've seen it all, so we're just here to offer the guidance and get you towards the goal of home ownership.

Dave Burnett:                    One of my favorite stories that you've told before, but I always like it is the gal that came in to get her credit scores, who thought, "There's no way I can get a home." But you ran it, took a look at it, and said, "Yeah, there is a way."

Michelle Guth:                  Yeah, they actually qualified on the spot, so they were quite taken aback. Don't make assumptions. Let's take a look at it and see what options we have.

Dave Burnett:                    Alright, that way you get to be a doer. [crosstalk 00:10:09] you get to be a doer and take some positive action. Michelle, if somebody wants to get hold of you there at Diversified Mortgage, how do they get hold of you, and how can they set up a consultation?

Michelle Guth:                  You can give us a call at 853-7878, or visit our website, dmgloans.com.

Dave Burnett:                    Just a full disclosure, I've used Diversified Mortgage. I like to brag on your staff, Molly, all the people there at Diversified, just a great group of people and so easy to work with.

Michelle Guth:                  They are wonderful, I have to agree. Thank you.

Dave Burnett:                    Very good. Michelle Guth with Diversified Mortgage. Give them a call. If you don't remember those numbers, of course, you can always go to the Core Group website, as well, to check it out. There's a link right on there for Diversified Mortgage.  We'll continue on the other side. This is the Idaho Real Estate Buzz, being brought to you by Diversified Mortgage and Core Group Realty. Call today, 933-7777. Find out why they say, "You get more with Core."


Seg 3


Dave:                    This is the Idaho Real Estate Buzz. I'm Dave Burnett along with Thom Dolman of Core Group Realty. Coregrouprealty.com is the website for you to go to. And the phone number, 933-7777. Easy to remember, 933 just start hitting the sevens ... No, let me back that up harder. 208-

Thom:                   Yes.

Dave:                    933-7777

Thom:                   Don't forget that-

Thom:                   208.

Dave:                    Yeah, keep forgetting they did that to us. 208-933-7777, that's the phone number to call and you can get hold of a customer care agent right there, and they will help direct it. Whether, you need to talk to a real estate agent-

Thom:                   Mm-hmm (affirmative).

Dave:                    If you need to talk to Thom, if you need to just get information on the website, they can help direct that call and get you the information you need.

Thom:                   Yep, someone's always standing by. So, just feel free to give us a call anytime.

Dave:                    You know Thom, something I wanted to ask you about and I ran into somebody this week that has been looking for a home-

Thom:                   Mm-hmm (affirmative).

Dave:                    And I will say this right up front, they are not using Core Group, they had another real estate company they're going through.

Thom:                   Okay.

Dave:                    But they said they're giving up.

Thom:                   Why?

Dave:                    They're giving up. [crosstalk 00:00:59].

Thom:                   Why are they giving up?

Dave:                    They've made offers on three different homes, they were outbid and they decided [crosstalk 00:01:02].

Thom:                   Oh yeah.

Dave:                    They said you know what, we'll just wait 'til the first of the year. And I said, you may be paying more because, the interest rate may go up by the [crosstalk 00:01:10].

Thom:                   Yeah, you never know.

Dave:                    First of the year-

Thom:                   Yeah.

Dave:                    So-

Thom:                   Interest rates are ... Have been historically low but, those could change at any time now. Especially with kind of some of the uncertainty that's happening in the marketplace and in the ... In just politics in general. But yeah, this low inventory ... This low inventory problem that we're having right now is really kind of the cause of those issues.

Dave:                    Yeah.

Thom:                   You know, we're ... And the numbers just came out recently from Boise Regional Realtors, they just came out this week ... At the beginning of this week, that showed that our ... For the first time in, I'm gonna say I think it was 24 months, two years. For the first time in two years, our medium price point actually dropped a little bit.

Dave:                    Wow.

Thom:                   In July, from June's numbers. So, we got-

Dave:                    And they've been pretty high.

Thom:                   Yeah.

Dave:                    Let's be honest.

Thom:                   Yeah. No-

Dave:                    Second really inflated high.

Thom:                   So, don't get me wrong, it only dropped to like a grand or two grand. But it was [crosstalk 00:02:03].

Dave:                    Still.

Thom:                   A little bit of a drop. So, you know and there's the questions like, does that mean that we're gonna see continuing drops or, is that just an anomaly for July or, whatnot. I do know that we had more homes go pending in July. So, I'm really super curious to see what August numbers end up with because, more homes went pending in July than actual new listings that came on from July versus June. So once again, leading to that even more drastic drop in inventory.

Dave:                    So, stay tuned for information on that because [crosstalk 00:02:39].

Thom:                   Yeah.

Dave:                    Have to average it out to see what's really-

Thom:                   It's-

Dave:                    Going on here.

Thom:                   Yeah, it's an ... It's such an interesting market right now. Sales actually in July for both Ada Canyon and, Kenyan County were down from June to July. In June, we had 1182 sales, and in July, we only had 1055 in Kenyan count ... In Ada County, sorry. And then, Kenyan went from 48 to 426. So, quite a drastic drop in homes sales for July. Curious to see what happens in August. Like I said, there was more homes that went pending, but less inventory that came on.  They did an interesting report that showed ... Compared our numbers ... Our inventory from 2014 to 2017. This is the Boise Regional Realtors that came out with this. And this is for existing homes only. This did not include the new construction stuff.

Dave:                    Right.

Thom:                   Our existing home in October of 2014 was 3.2 months supply. So, that means ... That meant that if nobody ever listed again existing home, not a new construction, just an existing home, we would have lasted 3.2 months before we ran out. July of 2017, we were at 1.4.

Dave:                    Yikes.

Thom:                   1.4 months. That's how much-

Dave:                    Wow! That is-

Thom:                   Inventory of just existing homes.

Dave:                    Boy, would I like to have that last house for sale. The price would go way down.

Thom:                   Right? Yeah, yeah. If you think about the whole concept of-

Dave:                    Supply and demand.

Thom:                   Supply and demand, yeah. There's so [crosstalk 00:04:11].

Dave:                    And that's kind of what's [crosstalk 00:04:12].

Thom:                   Demand right now still.

Dave:                    Happening though.

Thom:                   Yep, yeah. There's still so much demand out there, but there's just no supply. So, I know that people are hesitant because they say oh, but if I sell now, then what am I going to buy. Because, everything's at the top of the market. But, it's that gamble and that risk that you take in order to get the equity out of your home.

Dave:                    Mm-hmm (affirmative).

Thom:                   If we do experience any kind of a downturn, we may not be back to these numbers, you know.

Dave:                    Mm-hmm (affirmative).

Thom:                   They say it's all a 10 year cycle. Every ten years-

Dave:                    Yep.

Thom:                   You go up and down. So, if we experience a downturn, it may be another 10 years before we get back up to it. so, you know especially for those people who may have smaller houses, that are thinking about eventually getting into bigger homes.

Dave:                    Well, let me ask you this question. And, this goes back to my conversation with this person that they're gonna give up until January. Now-

Thom:                   Yeah.

Dave:                    Number one, I said to them, 'cause they're using somebody else. I said, well give Thom a call down here-

Thom:                   Mm-hmm (affirmative).

Dave:                    And have him put you together with a real estate agent that ... A real go-getter.

Thom:                   Yeah.

Dave:                    Because, right now you don't want just a real estate agent-

Thom:                   Yeah.

Dave:                    Whose sitting behind a desk and deciding whether they want to work or not. You need somebody who's a go-getter.

Thom:                   Yeah.

Dave:                    It's gonna have ... that's not afraid to roll up their sleeves and really work to get the [crosstalk 00:05:24].

Thom:                   And work hard.

Dave:                    And get the job done.

Thom:                   Yeah, that's what I love about my agents that I have on my team right now, is that they're all super eager, super knowledgeable of the marketplace because, we kind of do something that's a little bit more unique in our mark ... In our office versus other offices. Where we get together three times a week to talk about hey, what's happening with your buyers? What are you doing-

Dave:                    Mm-hmm (affirmative).

Thom:                   That ... Is successfully helping you get contracts accepted. So we're constantly talking about that as a team, and sharing that knowledge so that ... When it comes time to put in offers that are gonna be in a multiple offer situation, we can go ... My agents are trained to be able to go in with the strongest offer. They work with the clients and make sure that the offer is gonna be competitive with the rest of the offers, and maybe even be the ones that win out. So, we have some tactics, and some things that we do that kind of help offers get accepted in the industry. So, everything from doing escalation clauses, all the way up to writing personal letters from the sellers on why they should be picked for the house, which surprisingly enough, we hear it quite often from sellers. I chose this offer because, this is a buyer that cherishes the house as much as we've cherished the house for the last-

Dave:                    Mm-hmm (affirmative).

Thom:                   10 years with my ... brought up our family. And they have a family that they're just starting. So, those personal letters are like [crosstalk 00:06:50].

Dave:                    But if you have an agent [crosstalk 00:06:51].

Thom:                   Some people think that's kind of ... There's a lot of agents out there that are like, nah, the personal letters. They don't-

Dave:                    Yeah. If you have an agent that gets that though.

Thom:                   Yeah.

Dave:                    And they understand that-

Thom:                   Exactly.

Dave:                    And can make that fit, it may give you the competitive edge you need.

Thom:                   Exactly.

Dave:                    The other question I have tied along with this ... And you were talking about those first time home buyers.

Thom:                   Mm-hmm (affirmative).

Dave:                    When it comes to homes being built, there's nobody building $150,000 homes.

Thom:                   Not-

Dave:                    Is there?

Thom:                   That I'm aware of.

Dave:                    No, I don't think anybody ... I don't think [crosstalk 00:07:13].

Thom:                   I know I-

Dave:                    Why would I if I was a builder?

Thom:                   Exactly.

Dave:                    If I could build a $300,000 to a $500,000 home-

Thom:                   Exactly.

Dave:                    And sell it-

Thom:                   Exactly.

Dave:                    Why would I? So, that does make that entry level home ... It is tough-

Thom:                   That's where the ... That's when I said the inventory on the existing homes is at an all time low.

Dave:                    Mm-hmm (affirmative).

Thom:                   The existing homes are the ones that are especially in those lower price points-

Dave:                    Yeah.

Thom:                   Under $200,000. Those are the ones were having a really difficult time. So, when I say there's a listing that's ... Like, one of our listings that's at 159, that's huge.

Dave:                    Yeah.

Thom:                   You know, there's not a lot out there in that price point. So you gotta move quickly, you gotta be ready to jump on it and ... Yeah, and get those offers in and make it a competitive offer.

Dave:                    Which again, you need an agent who is up early-

Thom:                   Mm-hmm (affirmative).

Dave:                    Is checking or, when something comes up-

Thom:                   Mm-hmm (affirmative).

Dave:                    They're calling you right ... They're not going oh, I'll call Billy Thomorrow. They're calling you right now saying, there's a home that just came open in Meridian for $170,000.

Thom:                   Mm-hmm (affirmative).

Dave:                    Are you interested?

Thom:                   Yep. Let's get out there [crosstalk 00:08:13].

Dave:                    You need somebody who's [crosstalk 00:08:13].

Thom:                   Let's take a look at it and-

Dave:                    A go-getter.

Thom:                   Yes.

Dave:                    Exactly.

Thom:                   For sure.

Dave:                    So, that's what I want to encourage you to do. And again, if you don't use Core Group Realty, that's fine. But you at least owe it to yourself to call 933-7777, schedule an interview, sit down, talk with a number of the reps and find out who fits right, and what the right fit for you is. Both ways.

Thom:                   Yeah.

Dave:                    Both for the agent, and for you. And if you're happy, I can tell you this, the people that I've met and that I know here a Core Group, they're go-getters, and they're gonna go out and get the best deal possible for you whether you're buying or selling either way.

Thom:                   Yeah, for sure.

Dave:                    So-

Thom:                   That was cool.

Dave:                    I guess-

Thom:                   Interview. I always say interview your agent-

Dave:                    Yep.

Thom:                   Make sure you find someone that's a trusted advisor.

Dave:                    Well, if you know who you need to do that.

Thom:                   Yeah.

Dave:                    You just need to have ... You're making the biggest financial decisions-

Thom:                   Mm-hmm (affirmative).

Dave:                    Of your life, and you need somebody you can trust that has your best interest at heart. So, I guess we go back to the fact of ... This is about educating you.

Thom:                   Mm-hmm (affirmative).

Dave:                    And, we can't candy coat it. It's a tough time right now-

Thom:                   Yep.

Dave:                    Selling ... It's funny, when the market is bad-

Thom:                   Mm-hmm (affirmative).

Dave:                    And jobs ... There's no jobs at market, it's tough. It's tough now too, but in a totally different way.

Thom:                   Completely different. Different way than-

Dave:                    You need an agent who's a go-getter, who's not gonna come to work at 10 and take their lunch break at 11. First of all, you need to get that right agent.

Thom:                   And go coughing at two.

Dave:                    Yeah, and coughing at two, home by five. Call Core Group Realty, 933-7777 or go to their website, coregrouprealty.com. You can contact Thom through the website as well. There's a spot there where you can send an email. We'll continue on the other side. This is the Idaho Real Estate Buzz being brought to you by, Diversified Mortgage, and by Core Group Realty. Call 933-7777, find out why they say, you get more with Core.


Seg 4



Dave Burnett:                    This the Idaho Real Estate Buzz. I'm Dave Burnett along with Thom Dallman of Core Group Realty. coregrouprealty.com is the website. 208-933-7777-

Thom Dallman:                  Don't forget that 208.

Dave Burnett:                    So dial the 208-933, and then just push 7 until it rings, and a cusThomer care agent will pick up and get you directed where you need to go. 208-933-7777. You know, Thom, in my neighborhood where I live, out in Eagle, I just saw there's a couple homes that have sold, come and gone. They are sold now. But I just saw one pop up this week with ... I'm not going to name the company, but it's one of those do it ourself kits for selling.

Thom Dallman:                  Oh, yeah. Almost along the lines of the for sale by owner?

Dave Burnett:                    Yeah. That kind of thing.

Thom Dallman:                  Yeah.

Dave Burnett:                    It is an option. It is a choice that people make.

Thom Dallman:                  It is.

Dave Burnett:                    For some people, it works great. I'll tell you this story here in a minute of my father-in-law. I've told it before on this show, how he did his by himself. But one just popped up. I wanted to talk a little bit about these do it yourself kits for selling. Advantages, disadvantages, and this is coming from a real estate guy.

Thom Dallman:                  Yeah. Exactly.

Dave Burnett:                    What do you think?

Thom Dallman:                  It just really kind of depends on the individual. I guess going just a little bit to the National Association of Realtors always does surveys every year, and they kind of run stats, so when you kind of look at the stats between 2015 through 2017 that they've put out, only about 8% of the nation's homes sell for sale by owner.

Dave Burnett:                    How many?

Thom Dallman:                  8%.

Dave Burnett:                    That's not very big.

Thom Dallman:                  No. Roughly about 90% of the homes out there sell with a real estate agent.

Dave Burnett:                    Okay.

Thom Dallman:                  It's because of the fact that there's so much intricacy in selling a home, and so much that you can miss out on that people end up ... A lot of for sale by owners end up going to a real estate agent because-

Dave Burnett:                    They give up.

Thom Dallman:                  ... Yeah. They give up, because times goes by, and they can't get it sold. They don't have enough marketplace exposure, stuff like that. It's not always just about getting it onto an MLS, because that's what those companies kind of offer, is, "Hey, we'll just put it on the MLS, and then you just take care of everything else."

Dave Burnett:                    We've just thrown another house on the heap.

Thom Dallman:                  Right.

Dave Burnett:                    I mean, really, you're just putting another house on a big pile that's listed out there.

Thom Dallman:                  Exactly. Exactly. You do still need alternate exposure out there, the social media aspect of it, the professional photos aspect of it, and things like that. Those are all things that your qualified real estate agent would get into with a listing with you. Staging it, making sure that it's available, making sure you know who's coming through the home, stuff like that. I would say from these stats, roughly 89 to 90% of the homes sell with a real estate agent because we do help negotiate. We do help with that. Those parts of the thing that sellers find most difficult. One of the top stats on that report shows that that's the number one thing that for sale by owners said that they struggled with, was getting the price that they wanted, because for just negotiation purposes, things like that, not knowing the marketplace as sufficiently as a real estate agent does, and stuff like that. All those little things kind of tie in a little bit to that, not being able to get that price that you want. And actually, the for sale by home owners traditionally sell less than what a real estate agent can get them to sell for.

Dave Burnett:                    Is that right?

Thom Dallman:                  Just because the [crosstalk 00:03:45], and negotiating-

Dave Burnett:                    See, because that's a selling point, for doing the for sale on your own. You're saving that commission.

Thom Dallman:                  You're saving commission, but you're also, on the reverse side, selling the home for less than what you potentially could sell it with a real estate agent.

Dave Burnett:                    The other thing wrapped into that ... I'm just thinking out of my head. If you were to do this yourself, you need to be very disciplined. You need to be ready to be interrupted any time, because that phone call could come in and say, "Hey, saw your house was for sale. Could we come look at it in ten minutes?" What are you going to say?

Thom Dallman:                  Right.

Dave Burnett:                    "No. I'm watching TV, and I'm sitting here in my underpants. No."  You're not going to say that, so then you've got to get dressed. You've got to make sure the house is ready. You've got to get ready to be interrupted, whereas an agent, they can say, "Let's schedule the best time and deal with that." That's what they're paid to do.

Thom Dallman:                  Think about, as a for sale by owner, you get that phone call from a potential buyer, and that buyer shows up to look through the house, and maybe the seller thinks enough to ask, "Oh, so are you prequalified? Are you going to get a loan for this house?" They say, "Oh, no, we're just kind of testing the market to see what's available." You've just now wasted your afternoon.

Dave Burnett:                    Yeah.

Thom Dallman:                  Real estate agents typically don't take out buyers unless they are prequalified, especially in today's marketplace, when there's such a low inventory, and stuff like that.

Dave Burnett:                    So you have to figure out what your time is worth.

Thom Dallman:                  Yeah. Exactly.

Dave Burnett:                    So let's say, I don't know, let's say the commission is $5,000. You've got to decide if every hour that you get ticked away with somebody going, "Yeah, we just kind of want to come out and look at it," what is your time worth?

Thom Dallman:                  Mm-hmm (affirmative). Exactly.

Dave Burnett:                    What is your ... Oh, look at that. You don't get to go to the lake this weekend. You don't get to go to McCall this weekend. You don't get to go camping this weekend because you might miss a call.

Thom Dallman:                  Exactly.

Dave Burnett:                    Again, doing it yourself may be the right answer for you, but you have to consider all these things that go into this.

Thom Dallman:                  Exactly.

Dave Burnett:                    That's not fun.

Thom Dallman:                  Your time is valuable. Everybody's time is valuable, and being held hostage to your house, because you don't have an agent who's bringing other agents in to show the house, and stuff like that, that can be not so much on the time frame of selling the house. For sale by owner is typically about two or three times longer than listed traditionally.

Dave Burnett:                    See, because right now, though, the thinking is it's such a red hot real estate market that it's going to sell no matter what. Not necessarily true.

Thom Dallman:                  Not necessarily, because you still need the exposure. You still need that marketing. You still need the professional photos. You still need-

Dave Burnett:                    Somebody's got to get back into your neighborhood.

Thom Dallman:                  Exactly. You got to get the people aware of it.

Dave Burnett:                    Yeah. That's a tough one.

Thom Dallman:                  That's a tough one. That's where a good real estate agent has that marketing, has the social media presence, has the advertising out there in different locations in different areas. For example, here at Core Group, we have this radio show. We have our Facebook page that has 8,000 followers right now. We have the coregrouprealty.com website that we list our featured properties on. There's a multitude of marketing areas that we reach, and stuff like that, to get the home out there, and get the most exposure, and stuff. Doing things like broker open, if necessary, bringing other real estate agents in to see the house, so that they can compare it to what their buyers are looking for.

Dave Burnett:                    And you have your agents get together, and they kind of brainstorm, and one may go, "You know what? I've got a guy that may want that house." When you're doing it yourself, you've got you.

Thom Dallman:                  You've got you.

Dave Burnett:                    And maybe your wife or husband to go with it.

Thom Dallman:                  Exactly.

Dave Burnett:                    Which, again, it may be right for you. You might be disciplined enough to, but I know for me, I just wouldn't be disciplined enough to deal with the headache that comes with. Then, on top of that, you might show your home ... "I want to come look at your house." "Okay," and the guy turns out to be a real jerk.

Thom Dallman:                  Yeah. Exactly.

Dave Burnett:                    Then you're dealing with a guy who's a real jerk, looking at your house. You're going, "I don't want to sell my ... I don't want to inflict this guy on my neighbors."

Thom Dallman:                  And I hate to be negative, but that jerk could be someone who's scoping out your house to come and steal stuff from you eventually.

Dave Burnett:                    Yeah.

Thom Dallman:                  You just never know what kind of person's going to be coming through your house. That's why real estate agents are important, to be able to vet those people, and so forth. I think one of the other biggest advantages to having a real estate agent versus doing a for sale by owner really involves around the inspection time frame, as well as a lot of for sale by owners lose money because they're not 100% knowledgeable on what items are required to be fixed for loan processes, versus what doesn't really need to be fixed, if that makes sense. A lot of for sale by owners will just go ahead and they'll get a list of things that the buyer wants fixed, and they'll be like, "Okay. Fine. I'll just go through and fix everything." They're spending money that they really don't need to, because there may be things on there we can go back and say, a real estate agent can go back and negotiate, and say, "You know what? These aren't necessary. These are just cosmetic things. They're not necessary for your loan that you're getting, so the seller doesn't need to and doesn't want to fix that," and stuff like that. There's that loss of money in fixing and repairing things that don't necessarily need to be done.

Dave Burnett:                    I realize that when you go through a do it yourself kit that they give you the list of here's what you do, then you do this, and you do this, and you do this, but that's ... I don't know. For me, that's really frightening. Okay. Title company, okay. Lender. Title insurance. Is it an inspection or is it an ... What is it exactly where you're going, here?

Thom Dallman:                  Yeah. The whole title process.

Dave Burnett:                    All the legalese that goes along with it. Maybe you understand it, maybe you get it, but I know for me, I don't.

Thom Dallman:                  Exactly.

Dave Burnett:                    Whereas you got somebody, I can call up, say, "Thom, I need to do this," and you've got the answer.

Thom Dallman:                  We've got the answers. We've got the trusted advisors, the trusted people that we work with in the industry. We have a whole slew of people that we can recommend for whatever pops up in that realm of things. Definitely the title process can be so confusing, going through title reports, reading the CC&Rs, and stuff like that. Yeah, so much there that you just need that trusted advisor to really help kind of weed through that stuff.

Dave Burnett:                    Well, let me ask you this. If somebody currently is selling it themselves, can they come in and talk with you, or does that violate their deal?

Thom Dallman:                  Please do.

Dave Burnett:                    Can I contact Core Group Realty, and say, "Hey, you know what? I was going to go this direction, but it's not working for me."

Thom Dallman:                  Yeah. For sure. Yeah. Just reach out to us, and we'll be more than happy to kind of give you a no charge consultation, market analysis, so forth, and kind of give you some guidance on what we would do if you were to list with us, and how we could improve your showings, or improve your exposure, and stuff like that.

Dave Burnett:                    Will you hold my hand through this process, because that's what I need. Somebody to hold my hand through all this, because it's an emotion decision to sell a home, and in some cases, kind of frightening, stepping out to go, "Well, okay. Here we go." Having an agent there to hold your hand kind of helps.

Thom Dallman:                  Yeah. For sure.

Dave Burnett:                    Just the way it is. No criticism to you, if you've done it on your own and sold it on your own. Good for you.

Thom Dallman:                  That's awesome. Yeah.

Dave Burnett:                    Very quickly. My father-in-law had a house in South Boise, off of Stirrup Lane, South Boise. Decided he was going to sell his house. Got his for-sale sign, put it in the yard. Within two hours, somebody came up and said, "How much do you want for it?" He said, "Here's what I want for it." The guy said, "I'll take it." He goes, "Don't you want to see?" Said, "Nope. I'll take it."

                                                We told him, over and over again, "You're not asking enough for this house," and he wasn't. This guy got himself a bargain.

Thom Dallman:                  So he lost some money there.

Dave Burnett:                    He got himself a bargain. So, there you go. All right. If you want to talk to the folks at Core Group Realty, 933-7777. That is the phone number to call. We're here each and every week at 2:00, here on our Saturday afternoon, just to keep you updated on what is happening in the real estate world. Something to consider, if you're thinking about selling, if you want to do it on your own, you can consider it, but do yourself a favor. Before you make that decision, schedule time to come talk to the folks at Core Group Realty. See what they have to offer you. If you decide against it, so be it. You may be pleasantly surprised at what's going to happen and what they're going to do to help you get your home sold. We do this every Saturday at 2:00, so join us again next week, being brought to you by Diversified Mortgage and Core Group Realty. Call 933-7777. Find out why they say you get more with Core.


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