Michelle Guth, from Diversified Mortgage, joins us today to talk about home loans, and how important it is to have that pre-approval letter. Showing sellers that you already have been approved for funds is such a powerful tool. Learn more now.
Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnet, along with Thom Dallman who is the co-owner and the designated broker of CORE Group Realty. CORE Group Relaty.com that is the website for you to go and check out all the things about CORE Group, the agent, the properties, anything you wanna find out you can find it right there. Or you can call them at 933-7777. In fact, you can call right now and talk to the folks at CORE in the customer service agent standing by right now. Thom joins us again after taking a couple weeks off. You went down and did a little vacationing south of the boarder.
Thom: Yeah, yeah. Got to get down to Puerto Vallarta and enjoy a little sunshine and celebrate a milestone for my partner’s birthday celebration, so it was a nice little get away. To get out of some of this cold for a little bit.
Dave: Yeah, it seems like it’s been too icy just since I’ve seen you.
Thom: I know, right? It sounds like there was two really good snow storms when we were away.
Dave: That, there were. Which, you know, sometimes can be great, can sometimes be challenges for selling and presenting houses. Really getting a chance to show a house, when it’s under a foot of snow.
Thom: We just chatted at one of our meetings this week about that challenge and going out and showing properties. I had several agents still out there, who had clients that really wanted to get in. With the low inventory, right now, in the market, we are at an all-time low for a long time. I think the last report I saw said something about we haven't had this low inventory since 2001.
Dave: Well I know that there’s less than two months’ worth of inventory.
Thom: Definitely an all-time low.
Dave: The positive, thought, if you want to sell your home, now is a great time to call CORE and get that house listed.
Thom: It is an amazing time! Homes are selling really quick for top dollar. There’s a lot of demand out there still, there’s a lot of people who want to get into homes who need to get into homes in the market place. If people are willing to go out and trudge through snow in order to look at properties, they are pretty darn serious.
Dave: Exactly. But on the other hand, if your wanting to go trudge through some snow, but your still kind of looking, you can go online to coregrouprealty.com and, as a matter of fact, you have several featured listings there.
Thom: We have a couple featured listings that we have. Some really great properties that are on the market. Really great homes for people to look at and they will show up in our future listings. The first two are kind of within the line of custom homes, a couple are remodels. The first one, we were just talking about Boise and the North end, it's at 3347 W Good St. This one we are pretty much classifying as new construction, because it is literally almost could be a brand new home.. completely torn it down to its bare bones and are doing some additions to it, complete remodel on it. It’s going to be a tri-level with three bedrooms, two and a half baths, 1753 sq. feet. Once its completed its going to be on the market.. or it’s on the market currently, at $354,897 for a purchase price. Their projected construction completion is soon. They should be just about done with it, I do not have an exact date for that unfortunately.
Dave: But you can find that online.
Thom: Yeah! Find that online, give us a call. Or if you want to go check it out, one of our agents is standing by to go show it. Definitely a good opportunity in the North end to own a beautifully, almost new construction home.
Dave: But having kept the charm of the outside with the North end, keeping with all the compliance you have to do with the North end construction. They have done a great job with that.
Thom: Exactly, they always do such an amazing job with all their homes. Top quality and everything that they put into it. Great team to work with.
Dave: Alright. So, you can check that one out online at coregrouprealty.com
Thom: And with the low inventory, it’s a good thing to point out too, if you can't find that perfect house, schedule a meeting with her or another builder. Building is a great way to get that home that you want and get everything that you desire into it.
Dave: I ran into somebody recently that said.. they were talking about the show, talking about the gal and her husband that redo the homes in the North end.. They don't just do the North end..
Thom: No, no! They do all over. The next one that is online that I want to talk about is actually out in Kuna. On 390 N Cleveland Ave. They went in a did a remodel on a 3 bedroom, 1 bath, 1064 sq. ft. home, and gave it all new upgrades and a full new look. Its listed at $138,897.
Dave: That’s a great price point.
Thom: Its outside of the area at a great price point.
Dave: In Kuna, of course, one time was way out in the country and now really.. when you’re going to Nampa or commuting to Micron, your right near the freeway.
Thom: That Meridian highway right between Kuna and Meridian is so fast and efficient to get down. It’s like a blink of an eye into town.
Dave: It really is. In fact, while you were away, an article came out.. U Haul always puts out their information as far as who's coming and who's going.. and people moving into the treasure valley ranked top 5 in the nation.
Thom: Yeah. We have so many people moving into town. That's why I think part of our inventory, with the cold weather and stuff, people are hesitating on listing but we still have a flux of people coming in.
Dave: So don't hesitate if you’re thinking about listing your house, don't think, "Well, let's wait until all the snow goes away.." Get working on it now and beat the Spring rush. Take advantage of CORE's team and they will help walk you through the process and how to deal with the cold weather, how to deal.. the Core team will help you work through that.
Thom: Exactly, even if you just want a no obligation consultation on where the value of your home is, just give us a call. There is no obligation, there’s no forcing you into signing any contracts or anything. We are more than happy to just meet with you and just discuss the value and even meet you at the home and walk through and give you some pointers on how to get it ready for listing.
Dave: You know, I think it’s one that we have talked about.. One of the things I really like about Core that I get, having done this show week after week, is that.. You’re not in this for the short. You’re not in this just to sell a house. You’re in this to make a customer, because the average person moves every 5 years. If they are happy with the service, with the treatment they have gotten now, 5 years from now they will be back and be a customer again. That’s how you create that dynasty to just keep on rolling.
Thom: Yeah. We all know that businesses build on referrals, so to us it’s so important for the client to have such an excellent experience, that they won’t hesitate at all to recommend us to their family and friends. The client experience is the most important part of our aspect, hence our tag line "Client oriented real estate", focused on the clients and the client's needs.
Dave: And you have one more on your list?
Thom: Yeah, one more. Out in Caldwell, this ones at 28751 Country Ln. Nice 2188 sq. ft. home, 3 bedroom, two bath. It’s got 20 acres on it, nice big lot of land. Listed at $330,000. It’s got apple trees, all kinds of fruit trees, raspberries, peaches, all that fun stuff on the 20 acres. Definitely a beautiful home if you’re into getting out there and growing your own fruits.
Dave: A mini orchard
Thom: Yeah, right? It sits up on a hill top, so it has a beautiful view of the country side. Brand new hard wood laminate flooring in that house as well.
Dave: And where is this one again?
Thom: 28751 Country Ln in Caldwell.
Dave: With 20 acres? Got to like that.
Dave: Nice big property. Obviously if you have a hankering to get a horse, you have the acreage to take care of that. So, we have the one on Country Ln, we had the one on Good St in the North end.
Thom: And then 390 N Cleveland Ave in Kuna.
Dave: You can check all of those out at coregrouprealty.com, that is the website. C-O-R-E. Like we were talking, if you are not ready to go trudge out into the snow to go look at properties, it’s a great way to sit back on a Saturday evening or Sunday morning and enjoy a cup of coffee, take a look and see what’s available in the real estate market here in the area. Because the truth is, I mean I have to be flat honest, there’s not as much selection as we would have had before. So, it’s a great way to get a jump on it, take a look at it and give them a call at 933-7777. Then you can set up that appointment, saying, "You know what, we have these three houses we are kind of interested, tell us more."
Thom: Exactly, and they are going quick.
Dave: Don't wait around too long. CORE Group Realty.com is the website. We will continue, we call this the Idaho Real Estate buzz, where we talk all thing real estate and what’s happening. Not just homes for sale, but other things about your property, weather your buying or selling and how you can do it. He's Thom Dallman and Dave Burnet. We will continue on the other side here on 580 KIBO.
Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnet. Michelle Guth, with Diversified Mortgage joins us and she does each and every week to talk about financing. Diversified Mortgage, an equal opportunity lender. Michelle, welcome back.
Michelle: Good afternoon, Dave. Glad to be here.
Dave: Well you know all the things I have run across, there was a national article in the Wall Street Journal, talking about the three reasons you can't sell your home. They had 3 topics on there, we were talking during the break about it, some might involve urban areas more so then here in Idaho. Maybe you can shed some light on this, is one of the reasons that a deal will fall through.. I was talking with someone recently that they were trying to sell their house and the person they had, right in his category, they couldn't get financed. Is that something we see that happens.. I guess the #1 thing you always preach is pre-approval, but time wise, if someone is having trouble getting financing they could lose a deal on a house.
Michelle: Oh, absolutely. Ideally, they want to go through that process before they are even looking at a house. It’s an unfortunate event if someone is under contract when they find out they can't qualify for a mortgage. It put the seller in a bad position, the buyer, everybody across the board. That is why I think it is imperative that the first step before you even start looking at properties, you need to ensure that your financing is in place.
Dave: And in a day in age like now, where deals are done so quickly, I mean homes sell in a day or two.. You can't afford the wait, can you really?
Michelle: No, in many cases in our market, the sellers and listing agents are wanting to see proof of verification that you have already gone through that credit approval process. So, with that offer, they want to see that formal "you have been pre-approved, your income, your assets have been verified', to make sure that their working with the buy, where ideally, that scenario is not going to happen.
Dave: Ok, so, pre-approval, pre-approval, pre-approval.. You've started to think about buying a home? Now is the time to get approved.
Michelle: Yeah, and I am actually glad you just said pre-approval, because that’s another topic I would love to touch on is pre-approval vs. a credit approval. A lot of times I will have a client come in and say, "You know, I need to get pre-approved. What is the difference between a formal approval and a pre-approval?" In many cases, a pre-approval is.. we have pulled you r credit report, you have verbally told me what you make over the phone, or in person, but you have not given me any supporting documentation. So when I issue a pre-approval letter for them to submit the offer, it’s going to state that I have not seen their income, I have not seen their assets, it is all based off preliminary review and basically review of a credit report only, not actual review of documentation. Whereas a credit approval, we have gone through the entire process. We have looked at income, assets, the fully gamete of documentation to ensure that we are not going to end up in this position, where suddenly we find out, "Oh, they don't make enough money, sorry. Debt ratio is off."
Dave: So, in other words, your kind of going off their word then this is what.. this is how it all looks, not necessarily the hard facts?
Michelle: Correct. Exactly.
Dave: So, you can get.. pre-approval vs. a full credit approval. Full credit approval is really what you want to go with. Correct?
Michelle: Correct. Absolutely. With this market being so aggressive, being a sellers’ market, it’s not uncommon for me to get a call from a listing agent when they do get my credit approval letters saying, "Have you actually seen their income, their assets, have you reviewed all the documentation?" They want to make sure that that letter that I'm issuing in concrete. That we are not going to end up with an issue.
Dave: And we have talked about it in the past.. Just someone who is self-employed, they have some different circumstances as well. I can tell you, I'm making $75,000 a year, but if you are self-employed does it have different guidelines kind of?
Michelle: Well, we have to do an income analysis and there are several variables, because of course the benefit of self-employment is there are several things that you can deduct. We are not going to look at their.. sales, we are going to look at a different number after they do several deductions. It’s not going to be necessarily their gross sales, it will be normally quite a bit less than that.
Dave: One of the other things on this list of reasons why you can’t sell your home.. The appraisal doesn't match up to the sales price. Is that something that might happen often?
Michelle: Oh, absolutely. Thankfully, we are not seeing a ton of that this market. In the last year, we have seen market appreciation that values have continued to go up, but they have been at a relatively healthy pace, so we are not seeing those drastic swings in home values. We are seeing more of an issue with that about two years ago, now we are having minimal issues with that appraised values. Usually if they are coming in under, it’s not a huge sum of money, its $1000 worst case scenario, $4,000 or $5000. We are not seeing a lot of value issues in our market thankfully.
Dave: There at Diversified, you can kind of help work around that situation.
Michelle: Yeah, we are going to partner with the real estate agents and the buy and the seller to try to renegotiate that contract so hopefully, we can find a happy resolution that can benefit all parties to keep the transaction moving forward.
Dave: Third on that list was the fact that the inspection turns up something bad.. At what point in the process, the lending process, do you want to see the inspection take place.
Michelle: Very beginning of the process.. As soon as that goes under contract and is fully executed, the agents are going to order that home inspection and that's the very beginning stages. Again, the benefit of that is if there is something major wrong with the property.. Maybe they find excessive mold in the attic that can't be re-mediated or just items that the buys not comfortable with taking the property in as-is condition. They could have enough issues with.. that are significant enough to pose an issue with them getting their financing, but the buyer could say, "There's enough differed maintenance on this house that I don't think I have the financial ability to take care of it." So as a result, they don't want to proceed with the transaction. That could be a reason for it to fall through.
Dave: Michelle Guth, Diversified Mortgage, if someone wants to get a home.. We do have about 4-5 minutes left here.. If someone wants to get a hold of you to talk about pre-approval, never too early to get that done, how do they get a hold of you in your office?
Michelle: Give us a call at 853-7878. You can also visit our website, which is DMGLOANS.com or even stop by and see us. We are located right behind the Jacksons gas station on Marigold and Glenwood.
Dave: Alright. Very good. Hang on.. I am going to grab the reins and bring this wagon to a screeching halt, because two weeks ago, we talked about something that is very exciting.. that was something different happening with FHA loans and as it turns out, we have new administration in place and a stop has been put on. Explain what was going to happen and now what's not happening.
Michelle: Oh, no, say it isn't so. I have the worst news... We were so excited, FHA had announced a reduction in mortgage insurance premium, which made a big impact on buying power for our clients. Basically, we talked about where they are going to be able to achieve anywhere between $5-10k in added purchase price based on our median, home prices in the valley. Unfortunately, with the new administration, there was a repeal to that change. It was scheduled to go in effect as of Friday, the 27th, and that is no longer the case. So we are back to the old numbers.. Unfortunately, we are excited for that change, but we are back to where we were.
Dave: Quite a few people you contact have to re-do something, going to have to contact them again saying.. just kidding.
Dave: So, that kind of hurts. It is a great time rates.. don't be dismayed by the fact that interest rates have gone up a little bit. Rates are still almost at record lows.
Michelle: Oh, undoubtedly. They are amazing. I have a client, we were looking at rates and they were going, "Oh my gosh, they are at that level already?" And I kind of chuckled.. I said you know, I refinanced years ago and I got a 6.5% interest rate. I was doing a happy dance! Dependent on the program, there’s a lot of variables in rates, but we are still seeing rates depend upon the term, credit score.. anywhere from the low 3s to the low 4s. For APR.. There’s no reason to delay due to interest rates and I do think we are going to see a gradual increase in rates and home prices just in that of itself. We have such an inventory shortage, I think that’s going to start driving prices over the Spring.
Dave: So that’s something you really need to think about doing.. In one story that you told, that I absolutely love, someone called in saying, "You know what, I don't think I qualify, but I kind of want to explore this." And they did qualify. A lot of times, people think they aren't going to qualify for a home loan, but they can.
Michelle: Yes, and I'm still getting calls all the time where I will be corresponding with someone and they will say, "Well you know, I’ll reach out in about a year. I'm still trying to save up my 20% down." So there’s still that huge misconception where you have to have 20% down to buy a home. We talked about.. we have programs with $0 down, or very minimal downs. By all means, talk to a mortgage adviser.
Dave: That, and your credit itself, may not be quite as bad as you think it is or there may be ways to work with your credit situation to make that work for a home loan as well. Michelle, if someone wants to get a hold of you to talk about getting pre-approved and talk about their credit, we talk about this all the time that you don't have to be with CORE Group Realty, you can have any real estate agent and you can request Diversified Mortgage.. How would they get ahold of you to set up an appointment?
Michelle: Give us a call at 853-7878. Again, website is DMGloans.com. No pressure, come in and see us, we are happy to give you as much information as you need.
Dave: Good people you have there. In fact, sometime we need to kind of highlight the people that are working for you.
Michelle: We have a great family working there at the office, that’s for sure. They take good care of myself and my clients, wonderful team.
Dave: Check them out online. You will see pictures and find out all about the people involved as well at Diversified Mortgage. We will continue on the other side.. This is the Idaho Real Estate buzz on 580KIBO.
Dave: This is the Idaho Real Estate buzz, I'm Dave Burnet along with Thom Dallman of CORE Group. 933-7777, there are agents standing by to talk to you even as we speak, ready to talk with you about the website, about what’s happening out there. Thom is back from vacation and one of the things while you were gone that we got a chance to read up on a little bit more on that.. buying power, purchasing power for the potential home owner.
Thom: Yeah, I was just reading a report later this week that came out from Freddy Mac, and if you go to Freddy Mac.com you can see surveys and stuff like that. It to kind of keep people informed on what’s happening in the market place. There has been a little bit of a jump from January 19-26 on the average interest rate jumped up from 4.09 to 4.19, which basically really effects the buying power.
Dave: We have talked about this in the past. Can you go into a little more depth on how is it going to, i mean really in dollars and cents, how is that going to affect people with the interest rate going up.
Thom; Oh, sure. Let’s starts out with just purchasing power and what that means. Basically, the amount of home that you can afford to buy on a budget and the availability to spend.. you know, depending on your credit and all that stuff. As increases.. as the interest increase everyone knows that the purchase power kind of diminishes as more that you have to pay on interest, less that you are actually able to spend on the home. If could look at some of the reports, there’s a really nice survey on keeping current matters.. that they have a buyers purchasing power chart that shows what the difference is between an increase of, basically, an increase of 1% increase from 3.25, the interest rates were kind of last year at 3.25 to 3.5 up to 4.25, which is where we are kind of heading towards. The difference between what you can purchase at 3.25 vs. 4.25 ends up being at 3.25, you could purchase at $250,000 house depending on if you want to keep your payments around that a month. Trying to keep your payments around $1100 per month at 3.25% interest, you could purchase a home at $250,000. When you get that 1% increase, up to 4.25% to keep that payment at that $1,100, your purchase power then becomes $225,000. $25,000 decrease in the value of a home in order to be able to keep your payments under that $1,100 payment per month.
Dave: Is that $25,000 is that fairly significant?
Thom: Yeah! There’s a big different between a house that’s $225,000 and $250,000. You’re going to get a smaller house or a house with not as great amenities as you would like..
Dave: It could have one less bedroom then you would like or one less bathroom.
Thom: Possibly. Depending on the area that you are purchasing in, 25k can be substantial change in what you can purchase.
Dave: Now, you still could buy that much of a house, if you are qualified, you will just be paying more per month.
Thom: Yeah, so that’s keeping in mind, that’s to keep your payment at $1,100 per month. That’s what your budgeting to figure out your purchase power, and then you can figure out your interest rates and stuff like that. That gives you your buying power based off of what you can afford.
Dave: In the real estate world, is there kind of a speculation, a crystal ball, as to how high my interest rates going to next year?
Thom: The last report I saw, which again was on keeping current matters, they were kind of projecting that it’s going to get up to 5% towards the end of the year by the end of 2017. Most of the people are saying that it should not exceed 5, but it is definitely projected that it will increase throughout 2017. That is just a prediction, there’s no magic ball to say for sure that’s what going to happen, but just the financial indicators.. that’s what its leaning towards.
Dave: And some things people are saying, "Why are they raising interest rates?" And what I have had explained to me, I am no financial guy, but what I have had explained to me is recessions are cyclical. They happen on cyclical basis and there’s a chance that we might start sliding into slow down. If we are already at rock bottom, zero, there’s nothing they can do, they can't lower interest rates any lower then where they were, so they have got to get it back up a little bit... If we do, if we go into a slow down, they can lowers those back down to stimulate the economy.
Thom: I have heard that concept.. I have also heard that hinges a little bit on the fact that it has been so low, so much from the last downturn, to try to keep it as low as possible and that just can’t continue to keep it that low because of.. it’s been low for so long that there’s just, it’s natural for them to have to increase it with better job, employment rates.. housing being more affordable, some of the changes in the housing industry make it so that people can get in . They just had.. kind of have to start raising interest rates going forward.
Dave: Well we have talked to Michelle Guth about this, in the past as well on that as the good news on the housing situation. 8 years ago, 9 years ago, it was ridiculous, I mean, trying to get a loan, anyone could get a loan! If you hold a mirror up in front of them, if they had a breath, they would get a loan. It’s not that situation this time, so that if there is a slow down, it’s not like a lot of people are going to lose it because they were thin air anyways. There’s a bit of good news that at least the government has put some restrictions back on the lending institutions to make sure that the people who are borrowing money, can’t get back.
Thom: That was one of the best things that happened within the last economic turn down was that it did create this regulation, to really help the consumers be more safe when it comes to purchasing. Making sure that lenders aren't just throwing money out there.
Dave: Two other things that I think, correct me if I'm wrong on this, 8-9 years ago, everyone was getting into the real estate game because, basically if you had a breath you could sell a house. It was just crazy, seriously. you haven't seen that increase of just anyone selling a house, its more qualified people like at CORE Group, you have a good solid base.
Thom: Exactly, yeah. You definitely.. we do see increase in agent.. people signing up to be real estate agents, because they do hear it’s a good real estate economy. Everyone kind of gets excited about that and wants to jump into the industry. It is just not as drastic as it was back then.
Dave: Oh, there were crazy people getting into it. I'm speaking from out of the industry, but there were.. There were people saying I'm going to get my license and go sell real estate and some of them did, because it didn't take much then to get someone qualified and sell a house. You want to make sure you have a qualified agent and they are..
Thom: Interview them, talk to them, we talk about that all the time!
Dave: The other side of it that I have heard is that when it comes to building a home, there’s not as many fly by night contractors out there.
Dave: The people that are there.. the best plumbing and electric, those guys have been there and the fly by nights are gone.
Thom: A lot of the contractors are good contractors. When you are talking to builders ask them about their contractors. It definitely is a different market now then it was back then. I did want to mention one last thing with rates and stuff, even though we are talking about them going up, it’s still an all-time low. Rates are still historically low amounts, its nothing to be too panicked about, it’s just something to be aware about when it comes to purchasing a home.
Dave: And as we discussed with Michelle on the last segment, you may think you are not qualified to buy a house, but you may be presently surprised that you are, that you have sufficient credit, or that you don't need 20% down. There are programs to get you in there. It would be a great time to talk to Michelle Guth at Diversified or to talk to the folks at CORE Group Realty to find out what homes are out there and what your dollars can buy. What can $225000 buy? Great time to do that. Thom Dallman is with us, we will have one more segment as we continue with the Idaho Real Estate Buzz, we appreciate you stopping by, spending part of your Saturday with us. We will continue on the other side here 580 KIBO.
Dave: This is the Idaho Real Estate Buzz, I'm Dave Burnet along with Thom Dallman. Thom is the co owner and the designated broker of CORE. That is the website, 933-7777 that is the phone number for you to call. Thom has been away for a couple weeks down in sunny Mexico.
Thom: Yes, one of my favorite places to visit. It was a nice little retreat from the cold.
Dave: And for those without the video portion of this, Thom has got a nice sun tan. And I hate him for that. Its good to have you back. We were talking over the break, one of the things that’s become very apparent when you go to a foreign country, like Mexico or Central America, their building codes are very different then what we have here.
Thom: Yeah, very different. As you are walking upstairs that are very uneven, the first stair may be an inch to the next one might be 7 inches..
Dave: You look at that and you go, "Who said that was right?".
Thom: If you’re not paying attention, it’s very easy to stub a toe or trip yourself on stuff like that.
Dave: The thing that always get me when I travel to Central America, when they are building two story buildings and they are just using wooden poles to hold up the concrete.. its like that can't be good!
Thom: Its interesting, especially right now they have got so much construction going on with so many people in those vacation spots, buying these VRBO homes, use an investments, construction has really picked up. It’s interesting to see some of the stuff that goes on. The codes are more.. maybe the lack there of.. Not like we have here, your stairs have to be equally spaced all the way up, certain height, your railings have to be 36 inches high. There have been some spots where your kind of looking at a railing looking over the edge.
Dave: Somehow if it hits you below the waist, that can't be good. In Mexico, Central America, you see that but you also see it in some of these flip houses shows. Sometimes they say this has to be changed because this code is different then what it used to be.
Thom: Codes change all the time! There’s a lot of different ways that you have to go about doing those flips, making sure that your meeting the standards. There’s a lot of stuff need improvements that a lot of people aren't aware of.
Dave: Talk a little bit about that. Mind you, neither one of us are building inspectors, so always check with your local zoning ordinances. Some of the things that perhaps people aren't aware of, what do you got?
Thom: Sure. My knowledge is a lot of Boise city, permits, process and stuff like that is how I started my career was doing flips so I got a little bit familiar with the stuff the required permits vs. the ones that don't. So, I am not an expert on this by any means, but some of the stuff I have run into that were interesting that people don't realize they need permits. A perfect example was I went to replace bath fan in one of the bathrooms once, and found out that I needed a permit to just install a basic bath fan.
Dave: This was a replacement one? Or putting one in?
Thom: Putting one in. That required a mechanical permit to put an exhaust fan into a bathroom.
Dave: You know, as I think about it though, it makes sense.
Thom: It makes sense because you deal with electrical..
Dave: Not only electrical, you are dealing with moisture. And where are you putting that, are you just blowing that into the attic? That’s not good, that could create mold. I could see why they might want to control that to make sure it’s done right, so that you don't jeopardize the health of the house.
Thom: Things like that, things that would jeopardize the health of the house such as replacing siding, replacing windows..
Dave: Just to replace a window?
Thom: Yes. To replace a window requires a building permit. Technically, this is per code, or per the regulations for Boise. This is to the best of my knowledge once again. Weird things, like if you are putting in a fence that is more than 6 feet high, you have to have a building permit.
Dave: Typically, your senior planks are 6 feet. Soo you are ok with that, but if you decide you want that plus a decorative thing on top, builder permit required.
Thom: Retainer walls. People are always putting in retainer walls, especially for those homes along the foothills. If you are building a retaining wall that is 4 ft. high or higher, they are going to require a building permit for that.
Dave: See, I can see the safety there. If you go to Home Depot and buy those building blocks, it doesn't take long to get to 4 ft., but if those things fell over on you, you could really get hurt.
Thom: One of the big things that people do and just don't even think about is if you are having electrical outlets, it’s a huge safety concern, so that requires an electrical permit to install a new electrical outlet.
Dave: You know, I think in those home remodel shows I see the problem that they run into, electrical is a big part of that. They will tear apart a wall and suddenly they have wires that are just hooked together with wire nuts, there not the box, not the right stuff, but they decide they are going to run 4 more outlets there and they just string them through there. That is a safety problem!
Thom: That is a huge safety problem. That can cause all kinds of issues down the road if there is a spark, it can cause a fire. Things that.. They are pretty specific that if you are going to tear off the covering on the wall and do any kind of stuff inside there, more than likely your supposed to have a permit to do that.
Dave: But again, I would like to point out that neither one of us are building inspectors, so check with your local codes. This is just kind of a general rule, maybe you have been thinking about a remodel project. I have thought about a shed for outside, a tool shed, and there are certain things on that that might require a permit as well.
Thom: Yeah, yeah. For out buildings, there are certain expectations for permits depending on the size of it and if its attached to the house or not. You will probably need some kind of permit.
Dave: But how many times do we see people go, "Oh I'm just going to put up a little 4x8 tool shed," and they don't get any permits. That does happen a lot.
Thom: Even if you are a home owner, you do have to apply for a permit if you are doing something yourself. I always recommend if you are going to do any kind of addition, or remodels, that you contact your local planning inspector. To find out what permits you need so you can stay current, because if you were to sell your house, someone could ask to see the permits. They may ask for those permits.
Dave: I hadn't even thought of that. If you get an addition on your house, you have to think where the paperwork is on that. Well let me ask you this, because you were involved in doing flips, is it getting that kind of paper work, or filing for it? How difficult is it to get that permit?
Thom: I have never found it very difficult. It was just a matter of filing and waiting a week or two before getting accepted. Having the inspector coming through and inspect it once the work is done, it wasn't too difficult of a process. There’s fees associated with it.
Dave: What you said to me though, a lot of people think they will never know.. The lender may..
Thom: The appraisers could very well see.. identify that. Depending on the extent of course. I always recommend following the rules, when its necessary in any kind of remodel. Make sure that you are following the right rules.
Dave: And really while sometimes you may feel like some intrusion, as you have listed these things, its the safety factor. So you’re not going to burn your house down, create mold, flood something, or crush somebody.
Thom: Make sure no harm comes to people.
Dave: One of the things I was kind of curious about at the website, I would assume having a licenses contractor is a good thing to do.
Thom: Oh yeah. If you are wanting to do some extensive work, make sure that you are looking for a registered, licenses contractor to make sure you are getting someone qualified. We do have Dean Bradshaw, with D and B renovations. He does an amazing job and is licenses and can help people out as well.
Dave: You can find that out at COREgrouprealty.com on the proffered vendors list. Thom Dallman, I appreciate you bringing some of this to our attention, it’s something a lot of people don't think about. If someone wants to get a hold of you, how do they do that?
Thom: coregrouprealty.com is our website, 933-7777 is our phone number.
Dave: We do this every Saturday at 2, of course you can catch these online at coregrouprealty.com. Thom and his staff do blogging on that website as well. Thom, we do appreciate it. 580 KIBO.
Core Group Realty