Supply and Demand with anything is either a benefit or a struggle for people. When it comes to Idaho's Real Estate Market, the inventory is supremely low. While this is a prime time to sell your property and get top dollar, it's a hard struggle for the buyers who need an appraisal in order to solidify their home loans. Listen in and learn more!

Dave Burnett:                    This is the Idaho Real Estate Buzz. I'm Dave Burnett along with Thom Dallman. He is the co owner and designated broker of Core Group Realty, coregrouprealty.com. Call 933-7777 or log onto coregrouprealty.com. Thom we're at that point and I think maybe we've turned the corner and the weather is going to start staying nice for a while.

Thom Dallman:                  After that weird hailstorm we had earlier this week out of the blue.

Dave Burnett:                    Just bizarre. Bizarre weather but ...

Thom Dallman:                  Yeah, it's just been so strange. This weather has not been conducive very much for people getting out and looking at properties and so forth so ...

Dave Burnett:                    But you know what? The nice thing is, you don't have to. You can stay there in the comfort of your bathrobe and slippers and check it out at coregrouprealty.com.

Thom Dallman:                  Yeah, what's better than that than sitting at home in your pajamas, wife's on the couch going through the computer looking at homes, for sure?

Dave Burnett:                    Actually I was talking to somebody this week who said because they got a new TV now and it's got Bluetooth and so they can look at their laptop on their TV ...

Thom Dallman:                  Oh yeah, those smart TVs.

Dave Burnett:                    I told them, I said, "Check out Core Group Realty's website on the big screen." A little high def action there and check out some of the homes so they were going to do that this week.

Thom Dallman:                  I'm curious to find out how the experience worked for them and how it looked.

Dave Burnett:                    Suddenly 65 inches of TV screen of computer. That is the world we live in. Mentioning that, coregrouprealty.com is the website where you can go to take a look at the, "Coming Soon" and the featureds that you have there listed.

Thom Dallman:                  We love starting out the show with all the featured properties and coming soon properties. Love my "Coming Soons." I'm actually starting to coin a phrase and start calling them my secret listings.

Dave Burnett:                    For secret listings.

Thom Dallman:                  Especially in this marketplace where there's so little inventory. It's important to be able to get that first glance on those things that are kind of ...

Dave Burnett:                    Secret.

Thom Dallman:                  Like secret, yeah. Pretty much. It's been such a weird market too with such a low inventory. We just had an experience this week where we more or less were told that we were, on one of our "Coming Soons," secret listing, that someone actually wanted to put in a offer sight unseen, nonrefundable earnest money and just tie the property up because they really want the property. There's so little out there and people are competing so much for properties that they really wanted to do this.

Dave Burnett:                    Does it strike you that people are ... I hate to say desperate because that's a pretty negative word ...

Thom Dallman:                  A little bit?

Dave Burnett:                    But I mean they're anxious. They're very anxious.

Thom Dallman:                  A little bit. We've got several clients that are getting outbid. There are multiple offers, having to deal with multiple counter-offers these days. Our buyers agents are resorting to some of the things that we had to do back in the hey-days of 2006 and so forth where they're using escalation clauses. They're using letters. Letters from the buyers appealing to the sellers and stuff like that so it's a crazy market.

Dave Burnett:                    If you're not looking at existing homes. If you're looking to build it takes time.

Thom Dallman:                  It does.

Dave Burnett:                    By the time you get your land, get the permits, get everything built and then finding contractors because they're thin.

Thom Dallman:                  They're busy, yeah. It's kind of an interesting marketplace right now and we'll talk about it in a later segment but new construction continues to just be prevalent because there's just so little resale stuff out there. It's definitely a challenge at times.

Dave Burnett:                    It makes those secret listings all the more valuable for you. What do you have ...

Thom Dallman:                  We've got several secret listings but one that I really wanted to highlight. It is out in Star. It's 603 North Carswell Way. This property is beautiful. This property has a park-like back yard with fruit trees. It kind of pays you back a little bit in your fruit collection so you don't have to pay for fruit at the store.

Dave Burnett:                    If you get it now, let's see ... The fruit will be ripe once you move in.

Thom Dallman:                  Exactly. It's got a great, beautiful, covered front porch area that's perfect for that nighttime sitting outside with the family or your loved one or even by yourself and saying, "Hi," to the neighbors and stuff like that. Interesting side note. There was an interesting story recently on the news about how there's certain people throughout America that are starting to kind of do the front porch hang out like they used to do in the old day to talk to their neighbors and stuff like that. We've gotten so use to hanging out in the backyard.

Dave Burnett:                    We talked about it. I don't know if we've ever talked about it on the air. We've talked about it off the air.

Thom Dallman:                  Exactly.

Dave Burnett:                    I think air conditioning has destroyed neighborhoods.

Thom Dallman:                  Exactly.

Dave Burnett:                    Used to sit out on the stoop to cool down. You'd talk to your neighbors out on the stoop. Now it's rush into the garage and use my wifi to make sure the house is cold when I get in it.

Thom Dallman:                  We'll just chat with the neighbors on Facebook.

Dave Burnett:                    Exactly. So that's a nice thing.

Thom Dallman:                  Yeah. This house also has a really nice open floor plan with the family room right off the kitchen and dining room. The split bedroom floor plan that we talk about, so it's got the master on one side and the other two bedrooms on the other side. It's a three-bed, two-bath house. Single level, 1,899 square foot. Three car garage. It's on .21 of an acre so nice lot size as well. Fully fenced and in the Saddlebrook Subdivision over there in Star. Once again, that's 603 North Carswell Way. Beautiful property. A must-see if you are out and about. Want to take a look at it, contact us, we'll get someone to meet you out there and take a look at it.

Dave Burnett:                    To prove the point that Star is such the expanding area, they have road construction going right through the middle of downtown Star right now.

Thom Dallman:                  Oh, do they?

Dave Burnett:                    I don't know if they're widening that or what they're doing but ...

Thom Dallman:                  I would not be surprised. It's about time. They kind of need that a little bit with as much traffic kind of going through there right now.

Dave Burnett:                    My wife and I were talking about when we first moved to Boise, back in 1986 it must have been ... '88. '88 when we moved here. We took a trip and we drove out to Eagle. Then we drove out to Star. We drove all the way ... Way out there to Middleton and it seemed like it was way out in the country then.

Thom Dallman:                  Exactly.

Dave Burnett:                    Now it's not.

Thom Dallman:                  Now it just seems like such a hop, skip and a jump and there's not much land in between anymore.

Dave Burnett:                    There's not.

Thom Dallman:                  It's growing so much.

Dave Burnett:                    But really is why that's so desirable is that you're not right in the thick of it in Boise, in proper so it would be definitely a property worth looking at.

Thom Dallman:                  Yeah, take a look at it. It's going to be live by the end of the month so definitely something that you want to ... If it fits your lifestyle. If it fits your family, check it out and like I said, give us a call and we'll get someone over there to show it to you when we can. It's 603 North Carswell Way. Once again coming on at 230,000, really nice three-bed, two-bath single level home.

Dave Burnett:                    Perfect. All right. What else you got?

Thom Dallman:                  We've got all kinds of "Coming Soons." We talked last week about a couple out in Emmett, 2370 Mesa Avenue and 1469 Fernlee Court at Emmett. Some nice properties. One's the Mesa Avenue, 2370 Mesa is a five bedroom, three and a half bath, 30,792 square foot house with a two car garage. That one is coming on at 470,000. Nice house. Nice home out there. Check it out. 1469 Fernlee Court in Emmett is a three-bed, two-bath on .21 of an acre, 1534 square foot, coming on at 160,000. Got several out there.

Dave Burnett:                    If you're looking for that small town feel. We were talking about how fast Star is growing, Emmett still has that small town feel. They got the Cherry Festival, small town celebration.

Thom Dallman:                  That Cherry Festival is so much fun.

Dave Burnett:                    It is. Truly, you expect to see Andy Griffith walk out.

Thom Dallman:                  I don't know if you knew this about me, but I grew up in a really small town out in Iowa and every year we used to have our festival. It was just a city celebration festival and it was one of my fondest memories. I'm happy but also kind of a little embarrassed to report that I actually won a pie-eating contest when I was nine years old.

Dave Burnett:                    Nice. Still got the trophy?

Thom Dallman:                  Nope. That got lost in time.

Dave Burnett:                    If you're wanting to raise your children in an environment like that, that small town environment, Emmett's a perfect choice.

Thom Dallman:                  It's great, because just are nice to each other. It's a great community of bonding experience. I've never heard anything bad said about the people out there. It's a great community.

Dave Burnett:                    All right, so those "Coming Soon," those items.

Thom Dallman:                  Yep. Check out the "Coming Soons," check out our featured listings as well. We got some great featured listings out there. A couple more in Emmett as well as one over here on Hillcrest Estate Subdivision. A nice little townhouse. A great starter home at 119,997. That's 5374 West Kootenai Street. Really great little house with a covered patio, newly renovated. New paint and carpet so definitely worth checking out.

Dave Burnett:                    Again, this is at coregrouprealty.com. It's the secret listings. Does it still say "Coming Soon?"

Thom Dallman:                  It still says "Coming Soon." I haven't switched it over yet.

Dave Burnett:                    Okay, but it is those secret listings ...

Thom Dallman:                  Our secret listings.

Dave Burnett:                    Or features as well. It really is well worth looking at whether you get a chance if you're out driving around right now. Do it when you get home. Log onto your computer and sit back. It's a nice way to spend Sunday morning to sit there and check out the news, check out what's happening at Core Group with real estate and enjoy the coffee and enjoy the weekend, as we've got a decent one underway.

                                                We'll continue on the other side. This is the Idaho Real Estate Buzz on 580 KIDO and I guess I should say also now on 107.5 FM on KIDO Talk Radio. We'll come back on the other side. 

Dave Burnett:                    This is the Idaho Real Estate Buzz. I'm Dave Burnett along with Thom Dallman. He is the co-owner, designated broker of Core Group Realty, and you've been around since the start of ... Have you been here since the start of Core Group?

Thom Dallman:                  Yeah. Yeah, I've been here ever since we opened the doors back in 2010, June of 2010 to be exact. So we are going to be celebrating our seven-year anniversary here shortly.

Dave Burnett:                    Well you know, the way Core Group has grown and not only the way it's grown, but the way it is grown of really dedicating itself to customer service, to taking care of the client when they come in, to make sure it's the right fit for everybody concerned-

Thom Dallman:                  Exactly.

Dave Burnett:                    -I know that's something you take personal pride in.

Thom Dallman:                  Personal pride. Client-oriented real estate, that's what Core stands for. And it is the model that we live by every day and something that I push with my agents every day, to make sure that they live by our core values and live by our dedication to our clients and making sure that they are doing the best that they can and being fully knowledgeable in all aspects of real estate so that they can be well-educated, well-rounded, and know how to help their clients the best way they can.

Dave Burnett:                    We live in such a time, we hadn't planned on talking about this but I think it's important to touch on this. When it comes to real estate, we were talking about people being anxious. Property is at a premium right now, even to just try to get a bid in on something, so your agents have to know how to deal with people who are anxious, on both by the buying and the selling side-

Thom Dallman:                  Exactly.

Dave Burnett:                    -of trying to make sure, "Am I pricing this right? Am I not pricing it right?" To make sure that you do get the best and the most amount of money you can out of a property.

Thom Dallman:                  Exactly. I think that that leads to why I believe in specialization. I have listing agents and I have buyer's agents. They focus solely on their specific talents. My listing agents focus on listings and marketing those listings and knowing the values of homes and marketing those homes the best way that they can to get top-dollar. Whereas my buyer's agents, their sole focus is working with buyers and helping them to negotiate with the listing agents out there, getting good deals for what they can, as much as they can in this marketplace.

Dave Burnett:                    Well, it just makes sense because I think we all know, there's some people that are better at some things than others. There are some people who are better at buying properties, there's some people better at selling. The traditional way of, "You're an agent, you're gonna both buy and sell. And oh, by the way-"

Thom Dallman:                  Jack of all trades.

Dave Burnett:                    "-you have to clean the restrooms every other weekend." They get the whole list whereas this is specialized and when you come to Core Group, you know you're going to get a specialist to help you through the biggest transaction of your life.

Thom Dallman:                  Exactly. Exactly, yep. Yeah, we talk all the time about what's happening. My team meets three days a week to talk about what's happening in the marketplace, to talk about trends, numbers, what's happening with contracts, what experiences they're having and stuff like that.

Dave Burnett:                    I notice you have a pile of papers in front of you. April numbers have come out.

Thom Dallman:                  April numbers came out and it's a little bit staggering, I think you could say. The inventory picked up a little bit in March, which was a great thing, but unfortunately, has dropped down again in April just due to the increase in buyers that are happening and contracts being written. Unfortunately, the number of listings coming on are not proportionate, so there's been a downturn in the month's supply of inventory. We dropped from 2.4 months' supply in March to 2.0 in April.

Dave Burnett:                    So if you're trying to buy a house, not good news. You're trying to sell a house, it's great news.

Thom Dallman:                  It's great news. Yeah, for sure. For the buyers, it's a struggle because, like I said, there's multiple offers happening on everything. The sellers kinda get to cherry-pick the offers that come in, and we've had numerous offers go in over asking price and so forth. It's gonna start, a little bit, resulting in some struggles with appraisals so everybody has to be fully aware of what happens with the appraisal at that point but yeah. Right now, for Ada Canyon, two months' supply, and Canyon County, 1.9 months' supply.

Dave Burnett:                    Wow.

Thom Dallman:                  As we talked about in past episodes, or segments, that means that if we didn't have any brand new listings come on, we would literally run out of homes to sell in that amount of time.

Dave Burnett:                    In less than two months?

Thom Dallman:                  In less than two months if we do not get these new properties online and so forth, so-

Dave Burnett:                    That is just amazing.

Thom Dallman:                  Yeah, it's pushed the median sales price up. In Ada County, we're at 253,000. At the beginning of the year, we were in that 240s range, so the median price range still is still climbing. We're up at around 180 for Canyon County. So definitely interesting times for sales as well as new construction. New construction continues to rise. We talked, at the beginning of the year, about just new construction percentages over the last 11 years and how they kind of are starting to reach where they were in the 2007, 2008 time frames. Year-to-date, our new construction compared to resale homes for Ada and Canyon County combined, for single-family homes, is at 27%, whereas 2016, we ended with 21% so 27% [crosstalk 00:05:58]-

Dave Burnett:                    So that's quite a bit.

Thom Dallman:                  -into the first four months of the year, yeah.

Dave Burnett:                    Wow.

Thom Dallman:                  It's a huge number. It's definitely a new construction builder marketplace right now. The new construction, the builders are-

Dave Burnett:                    But again, the builders are busy.

Thom Dallman:                  Busy, they are.

Dave Burnett:                    So to try to knock and say, "Hey, you wanna build me a house?" "I'd love to build you a house. Let's talk in August."

Thom Dallman:                  Exactly.

Dave Burnett:                    I mean, that is the difficult thing going on right now.

Thom Dallman:                  Yeah, it's interesting market for the builders as well. Yeah. They do have a lot of stuff going on and struggle a little bit with meeting the demands and so forth. But a good builder will have all their ducks in a row and can plan those accordingly and so forth. Haven't seen a lot of delays luckily, knock on wood, in the new construction stuff. They've been pretty on-time for the most part, most of the builders out there. But it's definitely something that is very prevalent right now. Another interesting kind of tidbit of information is the Boise Regional Realtors released a statement talking about the monthly inventory versus pending sales. An interesting phenomenon has happened the last three months, where there's actually more pending sales than there is inventory.

Dave Burnett:                    Are you kidding me?

Thom Dallman:                  Yeah. For three progressive months, the numbers have been ... There's been more pending sales than there is inventory.

Dave Burnett:                    Than there is homes for sale.

Thom Dallman:                  That's what's causing this-

Dave Burnett:                    That's the kind of thing-

Thom Dallman:                  -decrease in inventory.

Dave Burnett:                    It almost makes a real estate broker lay awake at night.

Thom Dallman:                  Yeah, a little bit.

Dave Burnett:                    I mean, that would be like saying ... Try to put it into another way. We have a car lot, we only have our cars for sale but come on down.

Thom Dallman:                  But come on down. We have 70 buyers for 4 cars.

Dave Burnett:                    It takes dedicated real estate agents to get in there-

Thom Dallman:                  It really does.

Dave Burnett:                    -to not ... I was just thinking about it. See, an agent right now couldn't think, "Yeah, I'll kinda take the day off." You may miss a house.

Thom Dallman:                  Exactly.

Dave Burnett:                    You may miss a deal for your ... If you've got a real estate agent that's taking time off, that's tough because they may miss a deal.

Thom Dallman:                  Exactly, exactly. Yeah. They need to be on the ball, and even ... I heard from one agent this week who said, "I saw this listing and instantly called my clients about it and right after I got off the phone, I called the agent and she said, 'Oh yeah, no. No, we accepted a contract'." He's like, "It just came on. What are you talking about?"

Dave Burnett:                    Man.

Thom Dallman:                  So yeah, it's a tough time but you really need that dedicated buyer's agent that's watching out for you and watching those listings, almost several times throughout the day as they come on, and making sure that they're sending them to you to get them to you in a timely manner.

Dave Burnett:                    It is just astounding to me. We've talked to Michelle Guth with Diversified Mortgage about this before. We hit this before the housing bubble burst, where people were bidding on things sight-unseen. But back in those days, the qualifications to get a loan really wasn't tough. They held a mirror up in front of you. If you showed a breath, you got a loan.

Thom Dallman:                  Exactly.

Dave Burnett:                    Whereas now, there is more to it. So this is all based on more solid business sense.

Thom Dallman:                  Exactly. I think that with the recent uncertainty in politics, this is just my personal opinion. Take it for what it's worth. But my personal opinion is that, with the recent politics that have been happening and stuff like that, I just think that it started this cycle of people being hesitant on not wanting to really list, not knowing what to do. In combination with the weather and the weird weather patterns, the winter that we've had this year, it just caused this effect where nobody wanted to list so prices started shooting up. Now, sellers are at a point where, yeah, they can sell their house for top-dollar but then, what are they gonna buy?

Dave Burnett:                    Yeah, they've gotta buy something.

Thom Dallman:                  It's kind of created this weird cycle. I do believe that people will start listing again here shortly, and then there will be a evening-out of the marketplace and maybe a little drop of 10 to 15% to even it out and balance the scales again. But yeah, that's my prediction. That's what I'm thinking's gonna happen by the end of the year but who knows.

Dave Burnett:                    I don't wanna discourage anyone from looking for a home. In fact, now's a great time to call Core Group, set up a time to talk with one of the agents to see what is out there for you.

Thom Dallman:                  Oh, it's a great time to buy.

Dave Burnett:                    The perfect property may be there waiting for you.

Thom Dallman:                  Yeah, it's still a great time to buy because interest rates are still so historically low. Yeah. There's so many loan products out there and new ones coming on. There was a news article on, I believe it was on Fox this week, that talked about Wells Fargo partnering with NeighborWorks for a new ... It's gonna be a down payment assistance match program that they're working on. It should hopefully release before too long. There's programs out there. There's things out there for people to get into homes and so forth.

Dave Burnett:                    Well, if you want to set up an appointment with an agent to talk about the prospects for you for buying, or if you've got a home you wanna list, maybe you're moving out of the area, maybe you wanna build something new and you wanna list a home, I encourage you to call Core Group Realty. You can do it right now, even on a Saturday afternoon, call 933-7777. A customer care agent will answer your phone call, get you directed the right way. You will be very happy with the results that you get. We'll continue on the other side. This is KIDO Talk Radio at 580 AM and 107.5 FM now, so you can listen to Thom and I as we talk all things real estate on the FM dial as well, right here on KIDO.

Dave Burnett:                    This is the Idaho Real Estate Buzz. I'm Dave Burnett. He is Tom Dallman, the co-owner, designated broker, of Core Group Realty. Coregrouprealty.com, that is the website for you to go to check out all things real estate.

                                                Tom, as we have stated in the past, but I continue to want to do this. This show's not about selling homes. That's not the reason to be here.

Thom Dallman:                    Nope.

Dave Burnett:                    You have other ways to sell homes.

Thom Dallman:                    Exactly.

Dave Burnett:                    This show's about educating you, the consumer, whether you're buying or selling, so that you have knowledge about what's happening in real estate to show you some of the back things-

Thom Dallman:                    Exactly.

Dave Burnett:                    What happens behind the curtains with real estate so that you understand and know when you come to sit down at Core Group, and talk to the real estate agent, you already know how it works.

Thom Dallman:                    Yeah, exactly. That's the main point of this whole show is to educate everybody so that there's no surprises. There's so much information out there, and so much stuff that you go through when you're buying property and selling property that it's so good to be ... First, there's so much misinformation on the internet, as much as there is true information and stuff.

Dave Burnett:                    Yes.

Thom Dallman:                    Things change constantly, requirements, loan processes, purchasing processes. All that stuff changes so frequently that it's good to be well educated and to know what's happening.

Dave Burnett:                    The only one thing we ask is that if you're buying or selling a home that you get a qualified real estate agent, whether it's Core Group Realty or not. Just make sure they are qualified, and they know what they're doing, because like I said, with the internet, anything could happen.

Thom Dallman:                    Exactly, exactly.

Dave Burnett:                    And you could get swept up into ... You look at some of the scams going on.

Thom Dallman:                    Oh, yeah.

Dave Burnett:                    It's just incredible. Make sure, whether it's Core Group, or whether it's one of the other great real estate companies in town, that you get a qualified agent. We ask that you talk to Core Group, ask for an interview, see if it's the right fit for you.

Thom Dallman:                    Yeah, exactly. Yeah, we welcome everybody and anybody to come by the office, meet with one of our agents, and really get to know them. Not every agent is a fit for every client. It's important. This is the biggest purchase of your life. You need to make sure that person is someone you can trust, and someone you're comfortable with, to help you with that purchase.

Dave Burnett:                    Yep.

Thom Dallman:                    Yeah, it's [soaky 00:02:19].

Dave Burnett:                    Nothing is more frustrating, and I have been there, to tell a real estate agent, "We want to stay in this price range. We want in this end of town, and we don't want a fixer-upper," and they haul you out to a fixer-upper that's out of your price range in the wrong part of town. That is the worst.

Thom Dallman:                    Right.

Dave Burnett:                    I want somebody who's listening to me, listening to me.

Thom Dallman:                    Exactly. I know you said this, but let's check this house out.

Dave Burnett:                    Yeah, let's not.

Thom Dallman:                    Exactly.

Dave Burnett:                    That's the nice thing with Core is that they will work very hard to get you hooked up with an agent that understands what you're looking for and helps you find that dream home, that perfect place for you.

Thom Dallman:                    Exactly. Exactly, whether it's a resale property or new construction, my team is educated and well-versed on some of those requirements. There's certain requirements that lenders have for different properties, and stuff like that.

Dave Burnett:                    We talk to Michelle Guth at Diversified Mortgage every week.

Thom Dallman:                    Sure.

Dave Burnett:                    She has so many different loans.

Thom Dallman:                    Oh yeah.

Dave Burnett:                    The loan programs, the loan opportunities, and different ways to go.

Thom Dallman:                    And they're all acronyms.

Dave Burnett:                    They are.

Thom Dallman:                    FHA, VA.

Dave Burnett:                    A lot of letters in there.

Thom Dallman:                    IHFA.

Dave Burnett:                    But within those acronyms, there's some rules and regulations of things that are required, and required of you.

Thom Dallman:                    Yeah, yeah. There's everything, from resale to new construction, the house has to be safe and sound. They look at every ... When you go through the appraisal process, inspections, we're looking for things that will prohibit the loan from going through due to peeling paint, or exposed wiring, or things like that.

                                                Even with new construction, they have requirements that builders have to follow. For example, for FHA loans to get a new construction property, a builder has to be able to provide all the building permits, obviously. They have to give a copy of all the state and county inspections on footings, framing, and final electrical, everything, all that stuff, and be able to provide that to the lenders, as well as, obviously, the certificate of occupancy, once that's issued from the state.

Dave Burnett:                    A lot of paperwork.

Thom Dallman:                    Yeah, a lot of paperwork, but it doesn't stop there. There is also a builder's certificate that they have to go through for an FHA loan that comes from the ... Before the FHA appraisal can be ordered, which actually goes through and verifies that the builder is certified, that they have a tax ID number, their legal name, address, everything. They have to actually prove to the powers that be on FHA loans that they are indeed verified builders and certified builders.

Dave Burnett:                    The bank is doing that to protect themself.

Thom Dallman:                    Exactly.

Dave Burnett:                    Am I correct on that?

Thom Dallman:                    Yes. Yeah, they want to make sure, protect themselves, and protect the buyers. They want to make sure that the buyers are getting a qualified home that's going to last and last throughout the whole life of the property.

Dave Burnett:                    Right.

Thom Dallman:                    Yeah, and then finally at closing, there's a warranty of completion-

Dave Burnett:                    Builder.

Thom Dallman:                    That the FHA loans, the banks, actually require the builders to sign a warranty of completion. Yeah, even new construction, they have requirements. VA has a few different ones. Most of them are the same, as far as the building permit, the copy of the inspections for the footings, framing, and everything, and then the certificate of occupancy.

                                                But then they also have additional underwriting rules that can come through that prove the notice of value. They may have to actually submit the cost breakdown of the house, or even change orders, any variances on the property itself that are causing the prices to go up, and stuff like that. They want to see where the cost of the house is coming from, and so forth. That notice of value is a form that the underwriters may send out to the builders, as well.

Dave Burnett:                    It is amazing. Like everything else in this day and age, when you start to build a home, new construction, the prices fluctuate and change from the time you've filed the paperwork to the time you go to buy the supplies.

Thom Dallman:                    Exactly.

Dave Burnett:                    The price is changing, unfortunately, usually going up.

Thom Dallman:                    Going up, yeah. Yeah, a lot of people don't realize that when you start out on a new construction project that a lot of those prices that you see advertised on TV, they usually state in there that this is a base price. This is just base package with base amenities in the house.

                                                You go to a showroom throughout the process at some point, which is one of my favorite things to do. I love taking clients to the showrooms, and helping them pick out colors, and countertops, and doors, and door handles, and all that stuff. It's a long process, and I've witnessed a few fights from married couples going through that process. At the end of it all, then you get that kind of ... Most builders are pretty good about saying, "This one's going to cost you an extra $2,000. This one's going to cost you an $3,000, depending on the package, and what you're purchasing, and if you want upgraded to granite, and stuff like that."

                                                The final price usually is not the same as the initial price.

Dave Burnett:                    No.

Thom Dallman:                    When you go through a custom build job.

Dave Burnett:                    Is there a way for you at Core Group or for a real estate agent ... I know you have Heather here in the building, and one of your agents, also, they specialize, she and her husband, in the new construction, but is there somewhere to go to help for you to verify that a builder is not a fly-by-night builder?

Thom Dallman:                    You know what, I actually chatted with Heather about this, this week. She said that majority of the builders out there, there's very few builders that are not certified. For the most part, there's not very many out there that are not certified, so you really don't have that much of a risk with new construction. It's really hard for a builder that is not certified to build in, to be able to finish a house if they can't go through these processes, because FHA loans are one of the major loans that we have out there for all of our buyers.

Dave Burnett:                    And they have very strict rules.

Thom Dallman:                    Yeah, they have strict rules.

Dave Burnett:                    That, again, is to protect you, the consumer.

Thom Dallman:                    Yeah, yes.

Dave Burnett:                    And to make sure that that builder doesn't rip you off.

Thom Dallman:                    Exactly.

Dave Burnett:                    Which can happen.

Thom Dallman:                    Exactly, but I think that the builder's association would know, as someone that you could contact if you needed-

Dave Burnett:                    True.

Thom Dallman:                    To find someone, verify, a builder, and stuff like that. They would probably be the source that I would reach out to, if I had a question about it.

Dave Burnett:                    Yeah, if you're going to trust somebody with a quarter million dollars to do something for you-

Thom Dallman:                    Oh, yeah.

Dave Burnett:                    You want to make sure that person is well-recommended.

Thom Dallman:                    Exactly, exactly. Yeah, definitely some things to think about when you're doing some new construction, and some of those requirements, and stuff. Some interesting just side note requirements on wells and septic tanks, especially for VA and FHA, they actually require if it's on a private well to have water testing done. Testing water for chloroform, nitrates, nitrites, and lead, are the four main things that they want tested on a property. If you're buying a house with a private well, you're going to have a water inspection done.

Dave Burnett:                    That's for your own safety.

Thom Dallman:                    Exactly, and for your own safety, as well.

Dave Burnett:                    Exactly.

Thom Dallman:                    On our contracts, that is a inspection that the buyer or the seller can do, whatever you guys [crosstalk 00:10:40] out of it.

Dave Burnett:                    Or you can split it.

Thom Dallman:                    You can split it as well, if you want, and so forth, but for the most part, when it comes to water and well inspections, I highly encourage the buyer to do it.

Dave Burnett:                    Yeah.

Thom Dallman:                    You want to know that the water's coming from an actual spigot. I don't want to say anything bad about sellers. I'm not saying that sellers would fake anything, but unfortunately we do live in a society that does have a couple bad seeds out there.

Dave Burnett:                    I think we've all sold things before, and we've all gone through that, "I'm just not really going to mention that part of it. I'm not going to mention the heat doesn't work on the truck I'm selling."

Thom Dallman:                    Do not encourage that.

Dave Burnett:                    I'm not going to mention that. It's summer. They'll figure it out.

Thom Dallman:                    Never encourage that.

Dave Burnett:                    Yeah, so it's important that you are protected on that.

Thom Dallman:                    I think for water, you want to know that that water source is coming from the house, and that it's being tested accurately, and so forth. That is something that I usually highly recommend that the buyer does. If the buyer does not have the sufficient funds, and they're using all their money for the down payments and stuff, then yeah, it definitely is something that we can request from a seller to do that testing, as well.

Dave Burnett:                    We do recommend that if you are considering selling, or buying, or building a home, talk to the folks here at Core Group Realty, 933-7777. That is the phone number to call, whether you're looking at existing building or whether you're looking to build brand new, Core Group can take care of that need either direction for you.

Thom Dallman:                    Yeah.

Dave Burnett:                    And make sure you're in great shape, as you move forward. Again, knowledge is power, and we're trying to get you the power to be able to move forward. Give Core Group a call, 933-7777, or you can contact Tom through the website at coregrouprealty.com, which is the website.

                                                We do this every Saturday. In fact, former shows are on the web. You can listen back to the podcasts of those. Tom does blogs from time to time.

Thom Dallman:                    Idaho Real Estate Buzz, check it out on the blog on coregrouprealty.com.

Dave Burnett:                    That'll be good. We'll be back again next week right here, same time, same ... Well, I was going to say same channel, but 580 KIDO, now broadcasting at 107.5 FM, so you can listen to crystal clear FM, as well. Thom Dallman at Core Group, thank you so much.

Thom Dallman:                    Thank you, Dave.

Dave Burnett:                    We always enjoy getting together here on 580 KIDO.

Diversified Mortgage

Core Group Realty


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