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Today on the Idaho Real Estate Buzz, Thom and Dave go over the importance of Advertising and Marketing. When you are looking to sell your home, you want to select a candidate that has the proper tools to make sure your home is seen.

Dave:                    This is the Idaho Real Estate Buzz. I'm Dave Burnett along with Thom Dallman of Core Group Realty. CoreGroupRealty.com is a website, 933-7777, that is the phone number that you can dial at any time to get information about Core. Find out why they say, "You get more with Core."

Thom:                    Yes, you do.

Dave:                    It is a nice slogan, but it's true too.

Thom:                    Exactly. Yeah, we specialize in our marketing and getting our listing out there, and sold quickly for top dollar. The reason why we have listing specialists is that that's all they do. They market, and focus on getting the best that they can for the listings that we come in.

Dave:                     Let's talk about that for just a second before we talk about-

Thom:                    Sure.

Dave:                    The homes. I mean, you have sellers and you have listers.

Thom:                    Mm-hmm (affirmative).

Dave:                    Some companies it's the same person. Same person is out trying to sell as is trying to buy. The philosophy with Core is that if you can focus on one thing and be extremely good on one thing-

Thom:                    Right.

Dave:                    You're not trying to do both.

Thom:                    Exactly.

Dave:                    It's not a knock on people doing both-

Thom:                    Exactly.

Dave:                    But it's hard.

Thom:                    It's hard. It's that Jack of all trades and master of none theory. Or just that philosophy of the more you focus on one specialization like feet doctors, foot doctors, they focus on the foot and everything about the foot. It kind of equals a little bit like that. When you focus on one you become really good at it, and really good at judging the market as far as the market price and so forth. What advertising is working and so forth.

Dave:                    I would think if you were to ask any real estate agent from 50 years ago to today, if they were honest, they would say they are stronger at one than the other.

Thom:                    Correct.

Dave:                    They're either a stronger seller-

Thom:                    Correct.

Dave:                    Or they're a stronger at the listing part of it.

Thom:                    Yeah. Exactly. It's just natural tendency for real estates to lean one way or the other with their clients, and to focus their energies on one side or the other. Just, yeah, like you said they just are better at one or the other for sure.

Dave:                    Just one of the reasons you get more with Core.

Thom:                    Exactly, I like that.

Dave:                    We'll try to make an assembly as to the different reasons why. Companies come up with slogans-

Thom:                    Yep.

Dave:                    But you need to back it up. That is one of the reasons you're going to get more. You get a team of two different kind so people-

Thom:                    Correct

Dave:                    Listers and sellers.

Thom:                    Correct.

Dave:                    Let's talk about selling.

Thom:                    Sure.

Dave:                    Let's talk about homes that you have on the market right now at Core.

Thom:                    Yeah. We've got several options out there as we always talk about the Coming Soon section on our website. We've got several homes that are in that transition stage where they're getting ready, getting fixed up, getting ... In one case we have tenants that are in the process of moving out. These are homes that are not actually on the MLS yet. You get first access to them via our website. Yeah, just homes that are almost ready to go. We're getting the professional photos done. A few Coming Soons. We've got a new home that just go listed as well this week. Happy to talk about that as well as some other active listings.

Dave:                    When we say coming soon-

Thom:                    [crosstalk 00:03:08] Let's talk a little bit about the Coming Soons.

Dave:                    That's that tab on the website-

Thom:                    Yep.

Dave:                    At CoreGroupRealty.com that it is a tab that you want to click on Coming Soon.

Thom:                    Yeah. Click on that Coming Soon so you can see those homes that have not hit the market yet so you can get that sneak peek.

Dave:                    Check it out.

Thom:                    Insider look. The first one is at 315 10th street in Nampa. A two bedroom, one bath, 995 square foot home, built in 1952. It's in the Kings Heights addition subdivision and that's coming at the end of April for $90,000. Really good starter price point and home coming on there in Nampa. Once again, that's 315 10th Street in Nampa.

Dave:                    It's funny you mention that, I was in a conversation with somebody just this week about the fact you never see homes for under $100,000 anymore.

Thom:                    Hardly. Yeah. They are just not ... There's not very many of them right now especially the way the inventory is so low.

Dave:                    Yeah.

Thom:                    Pricing is going up so drastically, yeah. That's been a real struggle even for people who are looking under that $150,000 price point. They're really struggling. When they do come on they get multiple offers very quickly.

Dave:                    For that 90 grand that's out there on this property you want to jump on this one quickly.

Thom:                    Exactly. Exactly. Next house we have is at 3317 North Chatterton Way in Boise, 83713 zip code, in the Heather Meadows subdivisions. This is a nice four bedroom, two and a half bath, with 1,740 square feet, .15 of an acre, gas fire place. It's go a nice little family room or den, or office. That is coming on probably in the next two weeks at $229,900.

Dave:                    Okay.

Thom:                    Once again really good price point for that square footage in Boise, Southeast Boise.

Dave:                    Two things to look for at CoreGroupRealty.com, the website, check it out, check the photos out, check out the listing, see if it's something you're interested in. If it is, call 933-7777.

Thom:                    Yeah, for sure. Give us a call and we can give you some more details on these properties. Got one coming up, that one that we have talked about that's the one that has tenants in it currently, so it's not quite available, but that actually is looking like it will be coming on the weekend of the 15th.

Dave:                    Oh, okay.

Thom:                    Coming on soon, it's 1211 South Island Glenn Way over there in the Two River subdivision in Eagle. That four bedroom, three and a half bath with 3,446 square feet and a three car garage. That's waterfront property. You've got a nice view of the river. That's coming on at $450,000. 1211 South Island Glenn Way, really beautiful home-

Dave:                    All right.

Thom:                    To take a look at.

Dave:                    You said you had another one that just went onto the marketplace immediately?

Thom:                    Yeah. Yeah, these people were ready to go as soon as the ... They didn't really go through the Coming Soon phase. We got it on the market pretty quickly. That's 1429 West Arch Rock Street in Meridian, 83642 zip code. That's a three bed, two bath 1,699 square feet, with a two car garage, granite counters. It's got the nice split bedroom floor plan that everybody loves.

Dave:                    Nice.

Thom:                    It's at 1429 West Arch Rock Street coming on at $250 ... Came on sorry, it's listed currently at $250,000.

Dave:                    I'm going to assume that's probably a newer home. The only reason I say that is Arch Rock-

Thom:                    Builds.

Dave:                    You think about it-

Thom:                    Sure.

Dave:                    It'd be interesting to do a study at some time, Elm Street, Maple Street, older homes.

Thom:                    Mm-hmm (affirmative).

Dave:                    Things like Arch Rock that's probably a little bit newer.

Thom:                    Little bit newer, 2013.

Dave:                    Yeah. See right there.

Thom:                    Built in 2013.

Dave:                    It's just kind of funny.

Thom:                    Yeah.

Dave:                    Names of streets sometimes give away the age of the home.

Thom:                   Exactly.

Dave:                    It's not a numbered street like 13th Street and it's not Elm, or Maple.

Thom:                    Right.

Dave:                    Or Washington, named after a President.

Thom:                    The traditional names, yeah.

Dave:                    Yeah, there are those traditional streets. It's just something when you said that-

Thom:                   Oh, for sure.

Dave:                    That dawned on me, that's probably a newer home.

Thom:                    For sure. Yeah, it is.

Dave:                    Very good.

Thom:                    You got it.

Dave:                    You can check out-

Thom:                   Those are on the Featured Listings page. That's not on the Coming Soon. You'll see that one on the Featured Listings. You'll see all of our homes that we have listed that are currently available on that page.

Dave :                    Perfect. Be sure to do it. Check out the website, which is CoreGroupRealty.com, which is where you can find those homes where they're listed, whether it's the Coming Soon, which are a preview, or if they are Featured Listing. When you say MLS a lot of people know what MLS is, but it's Multiple Listings Services.

Thom:                    Service. Correct. Intermountain Multiple Listing Service is where all of our homes get put on for all the real estate agents to see. It's the one that syndicates to a lot of the public sites such as Zillow and Trulia, and things like that. Intermountain MLS is really the go to for all of us to put our stuff public.

Dave:                    And have been for a long time.

Thom:                    Yeah, exactly. They've been around forever.

Dave:                    If you happen to be driving around maybe you see a Core Group for sale sign, you're interested in it, you can go to the website or you can call here. You get your customer care agents standing by, basically 24/7 somebody will answer that phone and get a message to the folks here at Core.

Thom:                    Correct. Yeah, we always have someone standing by.

Dave:                    Perfect. 933-7777 that is the phone number to call, or go to CoreGroupRealty.com. We'll continue on the other side, going to be talking to Michelle Gooth with Diversified Mortgage. Find out what's happening in the world of finances, which is what makes it all go around is getting that loan, how you get that loan, how you get locked in. We'll talk to Michelle as we continue right here. It is the Idaho Real Estate Buzz on 580 KIDO.

Dave:                    This is the Idaho Real Estate Buzz. I'm Dave Burnett along with Michelle Guth from Diversified Mortgage. Michelle welcome back, as we're talking all things financial.

Michelle:             Good morning Dave.

Dave:                    By the way, right before we even start, if somebody wants to get a hold of you at Diversified how do they do that?

Michelle:             Oh you can stop by and see us, we're over in Garden City, or give us a call at 853-7878.

Dave:                    And diversified lending of course, is it Diversified Mortgage?

Michelle:             Diversified Mortgage.

Dave:                    Which is an equal opportunity lender.

Michelle:             Correct, thanks Dave.

Dave:                    So we got all the legalities in there. You brought Chase with you today.

Michelle:             I did, my partner in crime at the office.

Chase:                  Good morning, good morning.

Dave:                    All right, welcome Chase. We're gonna talk to you about something here in just a minute, but the first thing's first, and we certainly thought about the fact that homeowners' exemption, that deadline's coming up soon.

Michelle:             It is, so not only do we have tax day to worry about, we have the homeowner's exemption filing. So if you purchased a home in the last year you need to make sure that you did file for the exemption with the county.

Dave:                    Okay is there only certain times you can apply, or can you apply all year long? How does that work?

Michelle:             You can apply any time but there are specific deadlines. So what the homeowner's exemption is is a reduction off of your property taxes through the county if you have a primary residence. So for example, they have a reduction of $100,000 off your assessed value not to exceed 50% of your assessed value. So basically if you had a house that the county said was valued at $150,000, they're going to cut that in half and only tax you on $75,000.

Dave:                    Which is a huge savings.

Michelle:             50%, absolutely. It's going to vary depending upon what part of the county you're in. We have different levee codes, but where we're coming up to such an important deadline is that if you get filed, the deadline is normally April 15th. So since that landed on a weekend this year, the county is allowing you to have your property occupied by this upcoming Friday. You have to file it the following Monday, however. So they are giving a one day extension to file it; however you have to occupy the house by the 15th. So really the deadline is, if you're getting financing to close this upcoming Friday, but you have until the following Monday to have your paperwork in and a receipt from the county.

Dave:                    Now I assume there at Diversified that's something you're telling people who are closing on their loans, you're telling them, don't fool around with this.

Michelle:             We are, we are really busy at the office. We have numerous contracts where we have several people trying to make that deadline and in some cases the deadline isn't necessarily applicable to every person. If there is a borrower where they're buying a property where the exemption's already in place and say the current owner isn't buying a new home, maybe they're moving out of state, that exemption's going to stay in place on the home and gives them time to file for that even after the date. It's when it comes into a scenario where the current buyer, excuse me, the current seller is purchasing another home, and if they file for an extension prior to that deadline, it follows the buyer of the new house so as a result, that exemption could fall off. So if you don't make that deadline, you could be waiting until all of next year before you see the benefit of that.

Dave:                    Okay let me ask you this question, if you have somebody that recently refinanced their loan, like me?

Michelle:             Who would that be?

Dave:                    That would be me. Do I have to do anything?

Michelle:             You do not. It's only applicable for when you first purchased the property.

Dave:                    Okay.

Michelle:             So you're fine there. If you're doing new construction, new construction's different. Existing construction, you can file anytime, you just want to try to get it in by that deadline in the off chance the exemption's scheduled to fall off. Or say you bought a rental property or foreclosure where the county never had that exemption in place, that's where this deadline is so important, but you only do it the one time when you actually acquire the property and you never have to do it again as long as you reside there.

Dave:                    Okay, so if somebody has questions they can call your office?

Michelle:             Absolutely, please do. We're happy to be your resource. One other thing I'll note on that is with new construction, they have 30 days from the day they go on title. So they don't have that April 15th deadline for new construction, but they do only have 30 days on new construction. So make sure you're getting in, as soon as you go on record on your deed and it's recorded, I usually say get down to it the next day. Do not put it off. It's so important.

Dave:                    So the bottom line is, it's coming up just after the weekend of the 15th, it is coming up on the Monday. That is a solid deadline, if you have any questions, call Diversified immediately.

Michelle:             Please do, yes.

Dave:                    All right, Chase is with us, and Chase what's your official title down at Diversified? Scoot up close to that microphone there.

Chase:                  I'm a senior loan officer over at Diversified.

Dave:                    So does that make him a chief bean counter or? What does that mean?

Michelle:             Chase has been on my team now for three years already, so he's been a huge asset. We partner on a lot of transactions, so people get the benefit of not having just the benefit of my 26 years of experience, but they get Chase's years of experience as well as the rest of my team.

Dave:                    We were talking during the break about getting a lock on a loan, a long term lock. Explain a little about how that works.

Chase:                  So the long term works, if you're having a home built that you can secure in your lock for 150 days, or just under five months, and that secures your lock through the time period of your construction.

Dave:                    Is that the average that homes take to construct? About five months, more or less?

Chase:                  I would say the average is more or less around that time period. It does come with the ability that if your home is not completed within that period of time that you can extend it so it's not a hard stop as far as the interest rate.

Dave:                    Okay explain this to me, because I knew there's a difference. There's a construction loan, if you're getting it built. Is that something that I as a person having a home built, I dig take that out, or is that something that the builder takes out, the construction loan?

Chase:                  So the construction loan, it depends, there's a couple different options there. A lot of developers come in with their own financing for the construction of the home, whereas you as the consumer would end up getting your end loan to buy the house.

Dave:                    Okay, so when we're talking about getting that five month lock, that's on my loan as a consumer, not as the construction?

Chase:                  Correct.

Dave:                    Okay, so during what process do you ... do you do this right when you break ground or when do you do it?

Chase:                  You can lock in your interest rate with this program as soon as you have an executed contract. How it works is that it does have a one percent up front fee to secure that lock for that time period, and that is based off your loan amount, not your purchase price of the house.

Dave:                    Michelle, just thinking about it, there's a lot of new construction going on. Every time I turn around there's a new subdivision, and maybe it's because of the lack of existing housing right now, but there's a lot of new construction going on.

Michelle:             There is and we've been talking about in several segment the volatility in the market with regards to interest rate, and that's one of the things I love about having Chase on my team is he really closely monitors all of the reports coming out, the indicators that drive interest rates and keeps a close eye on all of the graphs and margins and economists and keeps the rest of the team apprised, and what I love about this program, as Chase mentioned, because of the volatility, if we have a client that's maybe even a little close on their debt ratio, we want to make sure that when that house is completed, that they're still going to qualify if for some reason we have a huge spike in interest rates and their debt ratio's too high, suddenly we can't offer them the loan. So even if you consider for a thirty year period, a difference in rate, you know a quarter, half a point, the interest, it accumulates. So we're securing that rate for that long haul just to have the piece of mind.

Dave:                    Michelle and Chase in with us from Diversify Mortgage, Chase, Michelle and I have talked about it a little bit, and of course, you're looking at a crystal ball, we don't know, but I would assume here in the next year we're going to see rates jump up again.

Chase:                  Absolutely, I mean as far as the interest rate market goes, there's a lot of outside influence as to what dictates what direction it moves, as far as what we see. We already had our historic lows with our interest rates and if every report that keeps coming out continues to be strong like it has been, then we're going to continue to see interest rates go up.

Dave:                    Now you see, those outside influences, we have a bit of time here, what are some of those influences that affect the marketplace?

Chase:                  One of the big effects is political, so depending on what the administration is able to accomplish. More recent would have been the healthcare repeal that had an impact as to the increase or decrease as far as pricing goes for the interest rates. So, that has the investor market as far as that aspect goes, makes it a little bit more volatile, because they're the ones that are doing the research and reading into what that ultimately means for our economy.

Dave:                    Very good, Chase is with us with Diversified Mortgage. Michelle again, if somebody is interested in finding out more about the homeowner's exemption or talking about getting something locked in long term, how do they get ahold of you there at Diversified?

Michelle:             Give us a call at 853-7878, and you can always visit our website which is dmgloans.com.

Dave:                    Or you can stop by right there on Marigold.

Michelle:             Yeah we'd love to see you. Come on by.

Dave:                    It would be a good thing to do. Diversified Mortgage, equal opportunity lender. We'll continue on the other side. This is the Idaho Real Estate Buzz on 580 KIDO.

Dave:                        This is the Idaho Real Estate Buzz, I'm Dave Renat along with Tom Dallman. He's the co-owner, designated broker of Core Group Realty (coregrouprealty.com the website; 933-7777 - that is the phone number to call). We're going to talk about something that I guess you could see it as a negative topic, but there are times when real estate deals fall apart. You'll see a home for sale and then it looks like sale pending or it looks like the sign is down, but the sign is back up.

Thom:              It's back on the market!

Dave Renat:                        And I guess I wanted to touch on, what are those things that make a real estate deal fall apart? There's not always one thing, there's multiple things.

Thom:              Oh yeah, there's all kinds of different things that can pop up during the process. We usually, as listing agents, try to circumvent these things. There's various reasons seller-side, buyer-side, whatnot, but let's start with the sellers. We've had deals fall apart because we find out through the escrow process that they don't even really own the property.

Dave:                        They don't own it?

Thom:              Correct. We've had issues where once we got title open and started the process, come to find out they thought they owned it because they had maybe a family member quick deed it over to them, only to find out that the quick deed report never got recorded with the state, so it's still owned by the original owner. The quick deed never got filed, so that's something that does every once in a while pop up and would prohibit, obviously, the sale of the property, so once again we try to do our due diligence beforehand to make sure that those things are being caught before, but every once in awhile they sneak through.

Dave:                        See, I didn't expect you to say that. I expected you to say they found out they had a lien on them from the state.

Thom:              That's one that prohibits the process, that will stop it cold if they have a huge tax lien, if they have a construction lien, some kind of lien on the property would definitely prohibit it. If they don't have enough funds to pay for it ... They have to prove to the buyer that they can pay off that lien from the proceeds or from cash that they have available to them, so liens are another one that pop up during the escrow process that we're like, "Oh!"

Dave:                        So, to a degree, if you don't totally own your home, somebody else is claiming a chunk of it, then that's what a lien is.

Thom:              Exactly.

Dave:                        That they're securing their money that you owed them at some point. So those can kind of come up as a surprise if you had no clue.

Thomas:              Oh, yeah. Biggest surprise is when they file bankruptcy and don't tell you about it. That'll put a halt to any sale.

Dave:                        That would be another one then.

Thom:              Yeah. You know, back in the economic downturn, that was pretty, I wouldn't say prevalent, it didn't happen that often, but you would start working with the seller, get it under contract, and come to find out that they went and signed up with a bankruptcy lawyer, and put it into bankruptcy, which halts the process completely because you have to have permission from the bankruptcy lawyers to be able to proceed with that.

Dave:                        Now would this be something where perhaps they've already come through but they just didn't resolve it and close it?

Thom:              Correct.

Dave:                        That could be one of them or they could still flat be in the middle of it and think they can get away with it.

Thom:              Yeah. I think that it's a little bit of an education process. People don't realize how the bankruptcy affects the sale of a house. They think that they can go ahead and file bankruptcy if they're having financial difficulties, and exclude the house from the bankruptcy, but that's not quite how it works, so you need to make sure you have a good, fluent bankruptcy attorney involved and let them know, and be communicative with your agent and the bankruptcy. If you're looking to do this with an attorney, to make sure that they right process is being done.

Dave:                        In thinking about this, Tom, this has to be, when things in real estate just get balled up, especially when it's a residence, because we take it all so personal, both selling and buying, this has to be emotional.

Thom:              Oh yeah.

Dave:                        If, for me as a buyer, suddenly you have to come back to me and say, "We've got a problem. They're in the middle of bankruptcy and you can't buy this house," that is emotionally disappointing for me if I thought I was getting this, or on the other side for the seller, they thought they were selling it, that they were moving forward, and now find out, sorry you've got problems.

Thom:              Well yeah, this is such a huge investment, whether you're buying or selling, and it's so disappointing. So disappointing for sellers if they really, truly didn't know about those liens on the property, to find out that they don't have equity in the property like they thought they would, and wouldn't be able to move on to their next venture. So yeah, the people get really emotional about some of these situations that pop up.

Dave:                        And as a real estate agent, they were hoping to get everything put together for everyone and they're going, here we go - now what?

Thom:              Yeah, I mean if you think about the real estate agents, we're commission based, so we're 100% commission on these properties, so we don't get paid unless we get something sold.

Dave:                        I mean seriously, you get a lot of work done and suddenly have the rug jerked out from under you and it's like and you're there to try to help two different people who, especially if that's the person you're representing to help them emotionally through it is rough.

Thom:              Well yeah and we get emotionally attached to our clients and it's a difficult process for everyone involved when so many things are going on. Every once in awhile you do have those non emotional things for the sellers, like the sellers just refuse to make repairs on a house. We've had the issues where either the appraiser asked for things to be fixed during the inspection, and for whatever reason the seller says no, whether it's they can't afford it or just don't have the proceeds, so that could really prohibit the purchase of the property because the lenders will not allow for anyone to purchase a property that doesn't have the safety and soundness to last and may have damage done because of a bad roof or peeling paint on the exterior of the house and stuff like that

Dave:                        And let's be honest, replacing a roof or painting a house, not cheap. So in defense of those trying to sell the home, they may be strapped where they just can't get that done.

Thom:              Exactly, so there's various reasons for it. So those are some of the seller's side of things that can happen. Some interesting stuff.

Dave:                        Any other ones on your list that you have there that kind of creep up?

Thom:              Yeah! Let's talk a little bit about the buyer's side because contracts do fall apart because of buyers.

Dave:                        Other than just changing their minds.

Thom:              Yeah. That's not a good one. But sometimes we've had contracts fall through because maybe a buyer loses their job and so they can no longer qualify for their loan. The loan qualification process is usually the main part of why a buyer won't be able to go through with it. There's things like I've seen where paperwork shows up for extra cash that has been deposited that they have to fully disclose where that came from, or a large payment to something that wasn't disclosed up front when they did the application process that would change their debt-to-income ratio and would cause the lender to then have to say, "Oh, sorry, you no longer qualify for this property."

Dave:                        We just recently refinanced with Michele and diversified, and we reached that point and said, "All right. From here, you do not take out any loans, do not take out any credit cards, do not do anything that will affect your credit because you're under the microscope for this next little period."

Thom:              Exactly.

Dave:                        So, she was very clear. Don't do anything.

Thom:              Don't do anything. Yeah, one of the biggest things that we see is that people get so excited about their new house that they go to [inaudible 00:12:42] or go to Mor Furniture and buy furniture for the house and then all of a sudden they have $5,000 worth of debt that they didn't have before and so ...

Dave:                        Which they can pay, but it messes all the paperwork up.

Thom:              It messes up the paperwork and if you are borderline with your debt-to-income ratio, that can just throw you over the edge, so don't go buy things. Don't go buying things.

Dave:                        Let me ask you this question: When somebody is purchasing, they put $1000 earnest money down on this, they're going through the process, they get excited, they go down to the furniture store and rack up a big furniture bill. Suddenly they're not qualified. Do they not also lose the earnest money?

Thom:              They could potentially. It really kind of depends where they're at in the process of the contract.

Dave:                        But that could happen.

Thom:              It could, it could potentially happen. If the sellers wanted to fight it.

Dave:                        It's a double whammy!

Thom:              Most contracts do have the verbiage in there that protects the buyers if for some reason they don't qualify for their loan anymore, but with something like that where it's ...

Dave:                        Stupidity.

Thom:              Well ...

Dave:                        I'll say that. I'll just say that. Ignorance, or maybe they're just not paying attention.

Thom:              Exactly. So, there's all kind of little things that pop up. We've had, not with us, but other agents that have sent us contracts, they haven't really paid attention to taxes and HOA fees, which the lenders need to know that information, because that is part of the loan process and the calculations of your debt-to-income ratio, is how much do you have to pay on your taxes and HOA fees. So we've had agents submit offers where they weren't paying attention and didn't realize that maybe there wasn't a home owners' exemption or the home owners' exemption fell off and so the taxes are higher than what they thought it was. So all of a sudden the lenders, after a week of having them under contract, the lender says, "Sorry, you can't qualify for this house because the taxes are too high."

Dave:                        And again, the brakes are put on. Let me do this, let me feel good about my HOA fees. What are the most HOA fees, off the top of your head, that you've seen on properties around the area. What are those really expensive ones? I'm trying to make myself feel better.

Thom:              I think the most expensive one is a subdivision that I've seen that charged $400 a quarter, so that's coming off the top of my head.

Dave:                        Yeah, see, I pay $106 a quarter.

Thom:              Okay, yeah.

Dave:                        Which to me is crazy. So, 400 a quarter? Ouch.

Thom:              Yeah, right?

Dave:                        I want a swimming pool with that one.

Thom:              Yeah, there is. There's some community pools involved and so forth, and some really, nice ornate fixtures up front. Waterfalls and whatnot ... So they can get pretty exorbitant on those prices.

Dave:                        So, it's just something to pay attention to, that there are those small details, which is why you really need to listen to your real estate agent and your lender

Thom:              Correct. Yes, make sure that you are not only listening to them, but being upfront and truthful about your details of what you have, what you owe and all that stuff, and be as detailed as possible.

Dave:                        It will be found out.

Thom:              It will probably pop up, yes.

Dave:                        If you have maybe some things that you didn't know, I mean that's when we went through this process of refinancing with Michele, there's a couple things we found, we had no idea. We got them straightened out, but it was just stuff on our credit report that we didn't realize was there.

Thom:              Yeah, I would advise most people to try to find out what they have on their credit report. If you're thinking about buying, talk to a lender to get that [inaudible 00:11:47] confirmation and find out exactly what you need to do so that you can get it clean so you can get that debt-to-income ratio up to where you can get into a house.

Dave:                        And the good news is most lenders, I know with Michele, they will work with you to help you get those things cleaned up with what you need to do to get in the right shape, so you may want to start six months out in advance, getting everything put away shipshape, ready to go.

Thom:              Oh, yeah. We've had lots of clients through the years that have worked with diversified on credit repair maybe a year before they're ready to buy.

Dave:                        And then go get that house before interest rates go up too much more and go get a good deal and but a new home.

Thomas:              Exactly.

Dave:                        Perfect. Tom Dallman, who is with Core Group Realty, as we're talking about some of the things that throw the monkey wrench in the works, which we don't like to think about it but the truth is you don't want it happening to you. We'll continue on the other side. This is the Idaho Real Estate Buzz here on 580 KIDO.

Dave:                    This is the Idaho Real Estate Buzz. I'm Dave Burnett along with Tom Dallman of Core Group Realty. Coregrouprealty.com is the website, 933-7777, that is the phone number to call if you have any questions about anything you hear on the show. In fact in the segment coming up, we're going to talk about a couple things that you maybe have never heard of a real estate company doing before. If you have more questions you can call and find out more information.

Thom:                   Please do.

Dave:                    One of these is let's say we're trying to sell the house and things aren't going the right way, you have a program to help out the person selling that home.

Thom:                    Yeah. We have, you may hear it on occasion on the radio or what-not, but we do have a 59 day guarantee program where we'll come to terms with you. We'll work through the process of figuring out the value of the house and come to a good price that we are all happy with and then we'll sit down with you and we'll go through a whole process where if we don't sell the home in 59 days, we won't charge you after the 59th day, we won't charge you the listing fee on the process because we haven't accomplished what we set out to do to sell that home in 59 days.

Dave:                    Basically two months.

Thom:                    Two months. Yep. We can sit you down and go through the process and explain how that all works but it's a great program for those people who know that they really need to get out of their house. Need to get moving pretty quickly and sell it pretty quickly.

Dave:                    It's motivation for Core Group as well.

Thom:                    Yeah, of course.

Dave:                    To keep after it. To make sure that the agents are keeping active at it. You as the boss going to keep after the agents to keep after it because it's a promise you've made.

Thom:                    Yeah, for sure. We invest so much in the marketing and the advertising of the properties that when we have sold these homes for free, we lose out on all that marketing money and stuff like that. We've done a couple of them where unfortunately they were just unsuccessful for various reasons.

Dave:                    Doesn't happen very often though, does it?

Thom:                   No, no. It doesn't happen very often.

Dave:                    There's one listing that we have talked about off and on that's been out there for a while. The Core bit's just about all done but you got it done. You worked it through and got it done. It's one that's near where I live so I've seen the sign up there off and on, up and down and it's like, "What is going on here with this?" It's one that's just had issues but you got it done.

Thom:                    For sure. That was a fun process. In the past we've had unique properties that ... We had one property that was a pyramid. It was a pyramid house. That was one that we had on the 59 day guarantee and then we're not successful unfortunately because of the uniqueness of it.

Dave:                    The person who built it loved it.

Thom:                    Right.

Dave:                    I've wondered that when I've seen ... I know there's a castle home here in the area, the pyramid home. There's a number of I guess you would say whoever built it had a great unique idea but sometimes those are kind of a pain to sell.

Thom:                    Exactly. We have to be somewhat careful and up-front with people if it's a unique property like that and any different location where we not do the program for it.

Dave:                    I know your ads have run and we'll say it here, certain restrictions apply.

Thom:                    Yeah.

Dave:                    That would be the case that if you have something that's a nightmare ...

Thom:                    Exactly.

Dave:                    Let's be honest. If it's a nightmare it's not the real estate person's dealing, it's yours.

Thom:                    Exactly.

Dave:                    You got to work with it. But that's a pretty good deal though.

Thom:                    Yeah. To have that kind of peace of mind to know that we're doing our best to get it sold and we'll get it sold within that 59 days. Not that we don't do that with all of our listings. We're aggressive with all of our listings and I think we do a really good job of getting them sold very quickly.

Dave:                    If you have questions about this. If we left you going, "Pyramid house. What are they talking about?" If we've left you with questions, call 933-7777. They'll get you hooked up with Tom or somebody who could explain the program and how that works.

Thom:                    Yep, for sure. Please give us a call so we can talk about it.

Dave Burnett:                    You have another one that you were telling me about and really I've never really heard about this and it is "Love it or List it."

Thom:                    "Love it or Leave it," is what we call it.

Dave:                    "Love it or Leave it."

Thom:                    Yep. This is a program that we really haven't talked about much in the past but we also have a guarantee for the buyers out there because every once in a while you have a buyer that moves into a house and realizes, "You know what? This just wasn't the right house for me."

Dave:                    Buyer's remorse.

Thom:                    Exactly. For various reasons.

Dave:                    I can give you a personal story. If you ever move to Pocatello, Idaho and try to buy something on Kurtwood Street. Happened to me. It's on the southern part of Pocatello where we lived and nobody told me about the hump yard. Just the name's enough to make you go, "What, what?" The hump yard has to do with the railroad in Pocatello and in the evenings they actually push the boxcars down this hill to be repaired or they do something with them and they run into each other and they bang. We looked at the house during the day.

Thom:                    Nobody every thought to say like, "Hey."

Dave:                    No. "Hey, we got the hump yard here." We did not know. We were fairly new to the area and we get into our house. We were all moved in. We're sitting down on the furniture and all of a sudden we hear this crashing noise. It's like, "What was that?" Then we hear it again about five minutes later. We go down and track it down and there's the hump yard. Had I been with Corp Group, there's nothing wrong with the house, I would have been calling you.

Thom:                   Yeah. We would have been there to help you out with that and turn around and help you get it sold and get you into a new home.

Dave:                    Somebody who worked for the railroad and didn't mind it. That was one of those circumstances that we bought this house. Nobody said a word. The real estate ... Nobody said anything.

Thom:                    Yeah. You never know sometimes what you're going to get fully, when you move into a house so we like to have our clients have that peace of mind that they are going to enjoy their home and love their home so if they don't ...

Dave:                    So explain the details, what happens.

Thom:                    Basically the details are, you get into your home. You for whatever reason a couple months in you find out that you really don't like it, we'll work with you to get it listed and then we'll take that listing fee and credit toward the purchase of a new home so in essence you're listing the property, the listing fees are converted over to the buyer's side so that you are basically in essence listing it for free with no listing fee. There's a fee to the buyer's agent for bringing the buyers to you but you don't necessarily have that fee to apply. It'll depend on the situations and circumstances and stuff like that on how that is applied but in essence ...

Dave:                    Certain restrictions do apply.

Thom:                    Exactly. We need to walk you through the process and figure out where you're at and stuff with the equity and the property. If there's equity. Sometimes there's not when you purchase a property so we kind of got to work through that.

Dave:                    Your reason for having this as the co-owner of Core Group Realty is to what? To just bring peace of mind to the buyer?

Thom:                    Yeah. I think that this is such a huge important process for people, buying such a large investment. Like you want to know that you have that peace of mind that this is going to be a good purchase for you. Our clients are super-important to us and that relationship that we build with our clients is crucial to us and we want them to have that peace of mind. We want them to know that they're going to get that house that they love. We'll do our due diligence and we'll do our best to make sure that you're well informed.   In the whole time that we've had this program we've only had one person take us up on it in six years and they just unfortunately didn't like their neighbors.

Dave:                    It happens.

Thom:                    Unfortunately, yeah. Sometimes you just don't ... Because that's one thing that you just when you're going and looking at the houses, you don't necessarily have the ability to find out what you can about the neighbors.

Dave:                    Or if you have a hump yard near by.

Thom:                    Exactly.

Dave:                    I'm telling you right now. I'm assuming that Core's agents, they kind of take it upon themselves to learn that stuff so could have said ... My real estate agent should have said, "By the way, you know there's a train yard down there and at 10:00 at night ..." Actually okay, I'm fudging a little bit because they tried to have it done by 10:00 at night but when I'd get up at 3:30 in the morning it doesn't matter. 9:30 at night that crashing sound was a lot. But you would say, "This does happen and you need to be aware of it."

Thom:                    Yeah. For the most part we try our best, especially when we list properties to find out any kind of adverse material facts like that. Anything that would disturb your peace of mind.

Dave:                    Trains that go by ... Because you don't know what time trains go by.

Thom:                    Exactly, if you buy a house that's near the airport with the planes coming over, we want to make sure that you're well aware that you're in the flight plan.

Dave:                    Right in the zone there.

Thom:                    You might have planes coming over every once in a while so yeah, things like that are super-important for us to make sure that people are aware of. Whether they're buying or when we go to list the property that we make sure that our buyer's agents are aware as they bring buyers to us and stuff. We try to make sure and disclose all that stuff up-front and make sure everybody fully aware of it.

Dave:                    So the two programs are "Love it or Leave it."

Thom:                    Love it or Leave it and the 59 Day Guarantee.

Dave:                    If you have a question about either one of those programs you can call 933-7777 and if the customer care agent can't explain it to you, they'll get somebody to you that can.

Thom:                    Exactly.

Dave:                    As we mentioned, certain restrictions do apply on this. Just to be aware of that, but it's Core's way of making sure that whether you're buying or selling that you are a satisfied customer because satisfied customers come back.

Thom:                    Exactly, and refer us to their family and friends.

Dave:                    That's what it's all about.

Thom:                    Yeah, for sure.

Dave:                    It really is. Hey, we appreciate you spending the time with us on Saturdays. If there is a home that maybe you want to take a look at that you've seen listed. Maybe saw it at Coregrouprealty.com, you can give a call to 933-7777. Even right now somebody will answer that phone, get you hooked up with an agent who can show you that home. Whether it's an open house, whatever it may be to get you into the home that you want because it is very competitive out there right now when it comes to buying a home because again, it's one of those shortages out there of homes so it is competitive.

Thom:                    Exactly.

Dave:                    Thom Dallman, that you so much. We will continue this again next Saturday. We do it every Saturday at 2:00. It's the Idaho Real Estate Buzz on 580 KIDO.

Diversified Mortgage
208-853-7878
dmgloans.com/Home

Core Group Realty
208-639-7700
CoreGroupRealty.com

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