The Idaho Real Estate Buzz talk about our White Christmas, and the up and coming White Super Bowl! Thom makes some excellent points of selling and listing in the snowy months, because there is less competition.
Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnet along with Thom Dallman of CORE. coregrouprealty.com is the website or if you would like to call, that number is 933-7777. In fact, right now, someone is standing by not just because of the show, they are always standing by ready to answer those calls.
Thom: Yep! We always try to have someone answering the phones so that people get their answers quickly and in a timely manner, have the support that they need.
Dave: Yeah. And that's the nice thing is.. the person who is going to answer the phone, they are not a real estate agent, but they are very well versed in the website.. if you have questions about the website, about the featured homes, anything that's on there... the vendors that you have that you work with, they can help guide somebody just on the website.
Thom: All kinds of information on the website. Yes, they are good at making sure that they can get you to where ever you need to go.
Dave: As we look outside the window, it suddenly dawned on me that we haven't seen the ground of our homes since the last week in December. It was that Christmas week. Everyone was going, "Are we going to have a white Christmas?" Well ya, we did.
Thom: Yeah, and then some.
Dave: And then a white Super Bowl coming up tomorrow. We are dealing with that.. but in some ways, people are hesitating to make that move to list their house. Inventory is low!
Thom: Yeah, yeah. Its an interesting phenomenon right now. Not only here, but I think its happening across the nation. We are hearing reports from the huge network of people that I chat with every day about.. people are just hesitant to list their homes right now for various reasons, either its weather related or politically related and so forth.. There's a huge shortage, I guess.. That's the best way to put it, we are at an all time low on inventories across the US, but specifically here in Ada County. The last report that came out said we are in a 1.8 months supply, which means that if we don't get any more new listings, that we are going to run out of listings in 1.8 months. People are hesitating. We are hearing from people that we have talked to that they want to wait until the snow clears up before they get their house on the market, or they want to wait until the weather is better. They feel like there's people not really wanting to buy homes right now. Which is not true. Our buyers team is active right now. They have a lot of things going on. We have a total of 10 contracts over last weekend. There are definitely buyers out there who are actively looking to purchase a home right now.
Dave: Even with the snow on the ground.. the cold weather.. It truly is a sellers market. If somebody is thinking about selling their home, you can get it turned around at a good price quickly.
Thom: Yeah. Prices are going up due to the lack of inventory, but its a great time to really asses your situation.. Especially if you purchased at the height of 2006 or 2007. Now is a great time to look at it, because you might have equity in your home right now. With the home prices being at top levels, due to the lack of inventory with the demand.. One of the national moving company has released a study that talked about.. There's a.. Saw 53% increase in one way truck rental for people moving into the Boise area. That's an interesting statistic, because that just shows that there are still a lot of buyers out there that need news homes to move into.
Dave: I have to ask you this question Thom.. Are they building new homes? Are they moving into apartments? We have seen a lot of apartments. Where are these people going that are coming here?
Thom: I think its a combination of everything.. What we are seeing is that people are trying to look for those short term rentals so they can find something. Because inventory is so low, they are having a hard time finding what they want. So they are moving into short term rentals and things like that, and apartments.. They are renting for a year until they can figure out where they want to be. There's a whole slew of ways people are going. New constructions are doing really well right now too. All the builders are really busy. We are getting to a point where I am hearing from the builders that they are so busy, they are having a hard time getting them scheduled. Some of the home builders are taking a little bit longer, because it's harder to get transmitted..
Dave: Lets set up this scenario. I have a home that I have had, that I'm ready to sell but I'm kind of waiting because I want the grass to be green and the birds to be chirping. Is now the time to come in and start talking with CORE?
Thom: Oh sure. Now is the time to do it. I think that now is the perfect time for people to try to beat..
Dave: But I can't take pictures of my home yet!
Thom: But that's ok! We can get pictures of the inside. You don't have to get pictures of the outside of your home to get it listed on the market. You can get pictures really nice pictures of the inside of you home and showcase the inside.There's certain things.. you may have pictures from last Spring. We can work with you creatively to come up with different pictures that can showcase the house. That is what out listing specialist.. work with sellers to really kind of figure out the best way to market and to figure out the best way to do pictures. We don't have to have professional pictures done on necessarily.. Like I said we can work with pictures that you have taken over the years, to showcase the house.
Dave: Is it that bad a deal to have people say, "Well, I'm not going to have a picture of my house in the snow". As long as it's still winter, it's not a bad thing! It's reality.
Thom: It's reality. If that's what we are faced with right now, we can definitely get it on the market with a picture of the snow. Some people like snow. There's ways to make it look nice.
Dave: And in a couple of months you can update that photo.
Thom: There's so many different kinds of things we can do, I would not let snow discourage you from listing your house right now. We have a demand, we have people out there looking, we have got such a low inventory that prices are doing really well. It's a great time. Traditionally, every year, around that March-April time frame is when we get everyone wanting to list their home. The supply is going to jump up hopefully this Spring, around that time frame. So you want to beat that rush. You want to get your house listed before that happens, then people have more options to pick from and so forth.
Dave: So I come in and I bring in the information to you. What's the next step we would go through with CORE?
Thom: We would set you up with a listing agent to meet you at your house, walk through your house, give you some pointers on some things you can work on to get it ready to showcase. Kind of come up with some marketing plans, we talked about our different marketing efforts that we do for people as well. Get an idea of maybe doing a coming soon, where we can get a couple pictures and teasers out in the market place so people know we have this house coming and that might generate some activity right away.. Even more activity, because we talk about that on the radio, we talk about it in different areas, we put it on our website.. There's a lot of people looking at our website to see what things are coming soon, what we have on there..
Dave: One of the things that your agents do is comparables. Does it make it a little tougher when there are not a lot of comparables out there, because of the inventory being low?
Thom: It kind of depends on the house. We can do things like go back a little further in time, look at things that have sold and stuff.. 3 months, we can go back 6 months, we can expand areas and look for similar areas. I think that we always are good about judging comparables and stuff, the tricky part is not only doing the comparables but make sure the appraisal is taken into account. Appraisers are just looking at the last 3 months and then we have to justify that..
Dave: When there is a shortage, the demand is going to go up.. the price is going to go up which is great news for the seller, that your house is going to be worth more now then it was last Fall. That is just because the demand is going to be so high. Let me throw a couple other fast balls at you. Can I, as a seller, if I have decided I amnot ready to move until the end of March, so two months out.. Can we make that a stipulation in the contract? So the seller agrees that they are not moving out until March 1.
Thom: Oh! For sure, yeah. We can do longer escrows so that they have time to do that move. We could do some rent back options, there are various ways of being able to vindicate that and work with the buyers.. well it depends a little bit on the buyers loans. I believe that the VA loans they have to take possession within 40-60 days. Depending on the person who is purchasing the house and what loan type they are going after, but for the most part, yeah. That is something we can negotiate. Sometimes if you have someone who is moving in to town and are living out of their UHaul..
Dave: If you have that anxious buyer out there that's the one that's going to pay you top dollar.. So basically things are going for asking price or above still?
Thom: Yeah. I think that for the most part, most things that are priced correctly are going for their list price or a little bit above. I'm hearing more and more of buyers agents asking about how to handle the dual offers on a house. We are doing things like out escalation clause and stuff like that to help our buyers be competitive.
Dave: Perfect. Thom Dallman of CORE, let me give you that website again... I was just noticing your mat on the way in. Someone asked me here a while back, how did they come up with CORE? And what does CORE stand for?
Thom: It stands for Client Oriented Real Estate. Out focus is on the client.
Dave: It all has to do with you, the client. Here is the phone number to call that you can call right now.. Get in touch with the folks at CORE, maybe get the process going on selling your home. Just because you are talking to them doesn't mean you are selling this week. Now is the time to get stated on it with that Spring time sale. We will continue, we will talk with Michelle Guth with Diversified coming in next. More ahead, here on the Idaho Real Estate Buzz, on 580 KIBO.