This week Dave Burnett, Michelle Guth, and Thom Dallman catch up on the Idaho Real Estate Buzz. First they talk about new properties coming on the market that will be listed with Core Group Realt. Then Michelle explains and answers some questions about Earnest Money. Thom then fills everyone in about the expected growth in the Treasure Valley over the next 10 years. Thom and Dave close it up with a discussion about Mobile, Manufacture, and Modular homes.

Segment #1

Dave Burnett: This is the Idaho Real Estate Buzz. I'm Dave Burnett along with Tom Dallman of Core Group Realty. Coregrouprealty.com, that is the website for you to go for all things real estate. Whether you're looking to buy or sell a home, whether you're just kind of browsing around to see what's out there, Core Group Realty will take care of you. 933-7777. Tom is a co-owner, designated broker. Welcome back. 

Thom Dallman: Thank you so much for having me here today. 

Dave Burnett: Well you know it's a busy day. Paint the town is underway, so a lot of businesses and individuals very busy out there getting things painted and spruced up. 

Thom Dallman: Yeah it is. They've reported that there's 39 homes out there, and I think the last thing I heard was something like 3,000 volunteers out there you know painting these homes and making life a little bit better for those elderly that just can't afford, or can't get the help to get their homes painted up. So we ourselves have one of those homes that we're working on, and hoping to finish up today over off of Gary Lane and Northwest Boise in Prescott. So nice mother and daughter, elderly mother and daughter, that living in this house. We're out there painting as we speak. 

Dave Burnett: Got to like it, and thanks to the Core team members who are out there working on this home as well. Now let's get down to business. 

Thom Dallman: All right, what do you want to talk about? 

Dave Burnett: On the website coregrouprealty.com, of course you have the secret listings, which you've changed the name recently, but it's still secret listings because it kind of is. It's that sneak peek, that secret look into what is coming up and available. You had one sell right off the list just recently. 

Thom Dallman: Yeah we had one that went right on and instantly went right back off again because the buyer's out there, like we've kind of mentioned, with the low inventory and stuff, buyers are eager to get into these homes and get whatever advantage they can with the competition out there.  

Dave Burnett: You know I had somebody ask me that, and it just reminded me, I had somebody ask me recently does it cost extra to get on the secret listings, or is that just part of the service at Core Group? 

Thom Dallman: Nope, it's part of the service. 

Dave Burnett: Yeah somebody asked me.  

Thom Dallman: It's part of the service ... 

Dave Burnett: Said I heard you talking about that, do they have to pay extra to get on that. I said I don't think so, I think it's part of the deal. 

Thom Dallman: Nope. Yup it's all part of the listing. When we go through the process we give it that time period for people to get in and be able to get it all cleaned up, and get it ready for showings, get everything situated as well as getting the professional photos done because we do professional photos for all of our listings. So it gives us that timeframe to get all that stuff in, and ready, and done so that the home looks beautiful when it does hit the market, and the sellers are prepared for doing the showings and so forth. So it's really kind of ... 

Dave Burnett: But for the buyer it's a nice deal because you kind of get a sneak peek ahead as to what's coming up. 

Thom Dallman: Exactly. Exactly. It's that first glimpse into it if you will. So these few people that actually get on our site, not few people there's thousands, each month they get onto our site and look around, so they actually get to see these properties and get some idea of it before it actually hits the public domain if you will on our Intermountain MLS, multiple listing service.  

Dave Burnett: What do you have listed this week? 

Thom Dallman: Sure, we've got one on the secret listing that I wanted to talk about. It's at 18393 North Can Ada Road in Nampa. This is a manufactured home on owned land. It's a two bedroom, two bath manufactured home at 1,144 square feet. Two car garage, single level. It has 2.76 acres, so it's really nice big land on it. So it's going to be coming on at $265,000 when it hits the market. So a great opportunity to own a mobile home basically on owned land.  

Dave Burnett: Can Ada Road that's out towards the, I think is that the road that the Idaho Center is on? I think it might be, or it's out that direction. 

Thom Dallman: It's out that direction, yeah. 

Dave Burnett: Right at the border. Hence the name Can Ada Rd. It's right there on the ... 

Thom Dallman: Exactly. So yeah, from my understanding it's pretty super convenient to everywhere to be able to get to whatever you want to do.  

Dave Burnett: I would think it's strategically placed right there in the middle of the treasure valley. So you can jump over to Ada or Canyon either way.  

Thom Dallman: Exactly. 

Dave Burnett: So that's nice. Again, that's on the secret listings so check that out coregrouprealty.com.  

Thom Dallman: Yup. That is, like I mentioned, a mobile/manufactured home. Later in our show today I want to do, we're going to be talking about the differences between mobile homes, manufactured home, and modular homes, and so forth. Yeah, moving on, one of our most exciting listings that has just came on the market. This is actually going to be on our featured listings, not on our coming soon tab. This one is at 1010 West Gooselake Court. This is in the Two Rivers subdivision, so nice giant 4,453 square foot home with a four bedroom, four and a half bath house, or four bedrooms ... 

Dave Burnett: How many square feet?  

Thom Dallman: It's 4,453 square feet.  

Dave Burnett: That's a large home. 

Thom Dallman: It's a huge home. Yeah. Like I said, it's a four bedroom, four and a half bath. Each bedroom has its own bathrooms. So almost like your own secret suite if you will. It's got a three car garage that features, it's an oversized garage that features that epoxy flooring in it, so convenient for that man or woman who likes to tinker around in the garage and build things and do things. You have that epoxy flooring that is easy to clean up and so forth. Has a private courtyard out front with a glass fireplace, or gas fireplace sorry. It's got two patios actually that are covered in the back of the house with no rear neighbors. It has a library area, huge master suite. It has upgraded Wolfe appliances throughout the home. Just a beautiful, beautiful home and a great opportunity to own a great property in Two Rivers. 

Dave Burnett: Two Rivers is really one of the premier subdivision areas in the city. 

Thom Dallman: Oh yeah, yeah. One of the top end homes subdivisions out there with just beautiful homes. It's a beautiful area too, just right there off of the river and all the trees and the lakes that they've built into those. Just a great area. So yeah, you've got to check this out at 1010 West Gooselake Court. Give us a call if you want to go view it. It's coming on, or it's on the market listed at $868,500. So definitely a must see with just custom cabinetry throughout the home. It's got wine storage in it, the all important wine storage for a home. 

Dave Burnett: I mean honestly, this is not a home that's in everybody's price range ... 

Thom Dallman: Exactly. 

Dave Burnett:... but this is one of those homes you walk in and you just go wow. Room after room after room, it's the wow factor is huge in it. 

Thom Dallman: Yeah. There's a purpose to have all that space, and have all that room, and be able to roam around the .3 acres of it, and have room for everybody to kind of do their own thing.  

Dave Burnett: Wow 

Thom Dallman: So yeah, it's a beautiful home. Check it out. Something really worthwhile to look at the pictures, and just see it. It's just a beautiful home.  

Dave Burnett: Well it's one of those dream homes that people dream about, and it's a home that somebody is going to make their home. 

Thom Dallman: There's someone out there that this is the perfect home for. 

Dave Burnett: It's nice and in the Two Rivers subdivision. Again, if you haven't been by Two Rivers and looked at it, it truly is one of the premier subdivisions in the area. 

Thom Dallman: Oh yeah, it is. Like I said, so convenient too. I mean there's a greenbelt that runs through Eagle that you can have access to, and it's just a five minute drive to downtown Eagle where you have all the restaurants, the shops, all the stuff that's been going on in Eagle as well.  

Dave Burnett: Another one of those areas that just continues to grow and expand. 

Thom Dallman: Exactly. 

Dave Burnett: It's funny because I live in the Eagle area, so to me it's like whatever, but I go to East Boise it's like wow look how much it's changed. People in East Boise come to Eagle and go whoa look how much it's changed. 

Thom Dallman: Exactly. 

Dave Burnett: So it's one of those deals. 

Thom Dallman: Eagle's definitely growing and changing as the years go by as well. 

Dave Burnett: That it is. Alright, so we have the secret listings and we have the featured, and that one by the way is on the featured listings ... 

Thom Dallman: Featured listings. 

Dave Burnett:  ... page and ready to go. 

Thom Dallman: Yeah, and we had another one that just came on too that we've kind of talked about on the coming soon, and it finally is ready to go live. This one's at 603 North Carswell Way in Star. So once again talking about just a beautiful community and a place to go for those who just want to kind of get away from the city, for growth in the city and so forth. Star is just a great community to live in. This 603 North Carswell is a almost 1,900 square foot home, three bed, two bath, single level. So no stairs to worry about. Four bedroom, two and a half bath. I'm sorry, three bedroom, two bath with that, in that Saddlebrook subdivision. Fully fenced, on .21 acre, and a three car garage. That one is live and is listed at $230,000.  

Dave Burnett: The address in Star again is what? 

Thom Dallman: It's at 603 North Carswell Way. 

Dave Burnett: Okay. 

Thom Dallman: In Star, Idaho. 

Dave Burnett: I always like giving the address because some people will go on and they'll Google map it.  

Thom Dallman: Exactly. 

Dave Burnett: Take a look at the aerial shots of them.  

Thom Dallman: Yeah for sure, and if you're interested and that's in your price point give us a call or reach out to us. We'd love to give you some more details on it. 

Dave Burnett: All of these can be seen at coregrouprealty.com, whether you want to do it here on this Saturday afternoon, or wait until Sunday morning. Kind of kick back, take a look at them. If there's any questions you have, you can always contact the folks at Core Group, and of course emails are available there on the website or you can call 933-7777. 

Thom Dallman: Yup. Please give us a call. 

Dave Burnett: All right. We're going to be talking to Michelle Guth coming up talking about what is happening in the financial world, the financial market as well as we continue. It's the Idaho Real Estate Buzz here on 580 KIDO, and on 107.5 FM.



Segment #2

Dave Burnett: This is the Idaho Real Estate Buzz, I'm Dave Burnett and we get the chance to talk to Michelle Guth with Diversified Mortgage Equal Opportunity Lender, each and every week. And you know, last week [Thom 00:00:11] and I were talking about earnest money. Kind of opened a can of worms. We were talking about the fact that is money you can lose, but not if you're taking care of it and doing things wisely, working with your lenders and working with your agents. But there are some questions involved with that Michelle, about earnest money, what it does, what we need to be prepared for. So help enlighten us a bit on earnest money.  

Michelle Guth: Absolutely. It's a good topic to bring up, because I have had clients that have been a little bit surprised when they had to write a earnest money check when they go to submit an offer. Many times they think they can acquire most of their funds for the transaction throughout the process, not realizing that they need to have their earnest money at the time they submit an offer on a property.  

Dave Burnett: Now if somebody did not hear the show last week, earnest money is that usually around $1,000.  

Thom: Mm-hmm (affirmative).  

Dave Burnett: Somewhere in that area. Money that you put down to show the seller that you are earnest, you're genuine in your offers. But let me ask you this question right up front. Earnest money can't be borrowed. It's something that you have to have in the bank ready to go? Or can it be borrowed? 

Michelle Guth: Well, typically you can't borrow earnest money. The only type of funds you can borrow under a mortgage has to be secured funds that we can utilize for the purposes of down payment and/or closing costs. So the acceptable source would be, maybe they did a 401K loan.  

Dave Burnett: Mm-hmm (affirmative).  

Michelle Guth: Or they visited with their mortgage professional and they told them they want to do a cash-out refinance against a vehicle that maybe they have equity in. So as long as it's a secured borrowed source and the mortgage originator has approved that is a source of funds, because that could impact their debt ratio. So I just kind of want to give a little segway to that.  

Dave Burnett: How about a gift from mom and dad? 

Michelle Guth: Yes, and no, but again, that's something that a mortgage professional has to be apprised of, because when we run an electronic approval, we determine it off of all the sources of funds and there's different layers of risk. And if you're not putting your own funds into the transaction, say it's all begin gifted from a family member for example, it does throw on an added layer of risk because you yourself do not have a financial investment into the property. So it could change your outcome on your approval. So again, these are all things that when you're dealing with the finance and the cash portion of the process, you need to be giving full disclosure to your mortgage professional.  

Dave Burnett: So Thom, this is something you discuss with your clients right up front.  

Thom: We do.  

Dave Burnett: The fact that there will be a little bit of money you have to put up front.  

Thom: There's a little bit of money, all the way through the whole process that they're going to need to be prepared for.  

Dave Burnett: So at what point does earnest money come into play? 

Michelle Guth: Well basically, once they submit an offer, they have to be in a position that they can issue that earnest money check. And I believe it's within 24 hours, or at the time of contract.  

Thom: The time of contract, we're going to need either the certified funds pulled from the bank, or a personal check written out that can be deposited traditionally with brokerages within 24 hours of acceptance of the contract. So once that contract comes back from the seller saying we accept it, that earnest money gets immediately deposited into a trust account.  

Michelle Guth: And they do have to realize it's getting deposited, that it is going to get cashed. 'Cause I've had borrowers also say, "I didn't know they were going to cash the check. I thought they held this." 

Thom: Exactly 

Michelle Guth: Like, it is going to get cashed.  

Thom: Exactly, so you have to have the funds in your account.  

Dave Burnett: So just outta curiosity's sake, say a morbid curiosity. If you bounce that check, what happens? 

Michelle Guth: Well, we're going to need a really good letter of explanation as to why your earnest money check bounced. So it's not to say it's going to kill the deal, but hopefully it's literally an oversight where it was that type of thing, where "I didn't know they were going to cash the check and all the funds were sitting in my savings account." We can work through that, but we definitely need to get it addressed right away.  

Thom: Exactly. And just likewise, with the contract and paperwork, with the sellers we need to disclose that to them and let them know that it happened, and give them an explanation of why and make sure that they're good with moving forward as well, so.  

Dave Burnett: Alright, so once the earnest funding is put in place, what other fees are coming up and can they come out of the earnest money, or is that something different? 

Michelle Guth: So no, the earnest money is literally held within the brokerage or a title company, and is held again, to ensure that they have a financial investment into the transaction. So it is not applied to anything until we get to the point of closing. So, the home inspection is going to be typically required to be paid at the time of inspection, directly to the home inspector.  

Thom: Mm-hmm (affirmative).  

Michelle Guth: And that expense is outside of the mortgage, so in many cases when we're running numbers to say, you know, this is approximately how much you're going to need for closing, it does not encompass the home inspection into that amount because that is separate from the mortgage. It's not a requirement of the mortgage to have a home inspection. We always encourage them to get one, but it is outside of the mortgage.  

Thom: Exactly 

Dave Burnett: And I know you can't say this is the amount, but on average, what do home inspections cost? Is there kind of a formula? What's a rough idea? 

Thom: Go ahead.  

Michelle Guth: Well, it depends on the size of the house. I mean, there's a lot of variables. If you're buying an acreage property with outbuildings and such versus a single family residence, 1,200 square feet, there could be a big disparity. But typically, if I had to guess on the low side, you're probably saying 250.  


Michelle Guth: On the high side, probably 500 to 600.  

Thom: Correct 

Dave Burnett: And so would this be money that I might need to have available before any transaction is done as well? 

Michelle Guth: Yes. When we do the mortgage pre-approval process, I tell all of my clients. It's like, when you're ready to start shopping and I have your credit approval in place, you need to have the funds set aside for a minimum of probably $500, but $1,000 would be better for earnest money.  

Thom: Mm-hmm (affirmative).  

Michelle Guth: Along with your home inspection. So I usually tell them anywhere from 850 bucks to 1,350 bucks that they need to have set aside and ready to go at the time they start shopping for a home.  

Thom: Yep 

Dave Bernant: Mmkay. See, this is something, you know, when you start buying a home. If you're inexperienced at it, you're not thinking about this.  

Thom: You don't realize that, yes. That's why you really want to make sure you have that advisor, that agent, that's going to help you walk that process and line that out for you when you're going through the process. So that's one of the conversations we always have with our buyers when they first come into us. We talk about the process and we talk about how much money is going to be needed up front. It's a nice thing too, and we know that Diversified's having that conversation if they go to Diversified and get pre-qualified first, they're going through that process as well and getting educated. 

Michelle Guth: We don't like surprises for us or the clients.  

Thom: For the ... Yeah, exactly.  

Michelle Guth: We want it to be as stress free as possible.  

Thom: Exactly 

Michelle Guth: So yeah, we try to definitely advise them up front.  

Dave Burnett: So the earnest money then, and I think we discussed this last week, it does apply to your loan. 

Michelle Guth: Correct 

Dave Burnett: It's not like some mysterious $1,000 floating out there.  

Michelle Guth: Yes. So, for arguments sake, say their funds due at closing was $5,000 for a down payment portion of closing cost, whatever it might be. If they did $1,000 in earnest money, they're now only going to be bringing in $4,000. So it will be applied as a credit toward your funds due at closing.  

Dave Burnett: Okay very good. Alright, so earnest money, you have inspections. What other kind of fees might we expect beforehand? 

Michelle Guth: So, the appraisal fee. There's many lenders, particularly banks quite often require that they do an application deposit. And that application deposit typically will cover the cost of the appraisal, sometimes credit reports, and anything potentially processing fees. At Diversified Mortgage, we do not charge an application deposit to our clients. We know that they're working diligently to come up with the funds typically to cover the inspection and the earnest money, and we don't want to put them in even further financial ... Basically stretching their budget, to come up with an application deposit.  

In some cases, we will collect the appraisal at the time of order, but many cases as the manager of the company, I will basically cover the expense of that upfront and collect it at closing. And the reason that I do that is primarily, a lot of our clients are getting closing cost assistance, and if I charge their credit card for a home appraisal and then we get to closing, there's no way for me to get the money from the seller's side of the transaction to pay back their credit card. So in essence, they get stuck paying that out of pocket.  

Thom: Mm-hmm (affirmative).  

Michelle Guth: So as a result, I'm going to cover it upfront and we'll collect it from them at closing.  

Dave Burnett: Now is that one of those fees that you could split with the seller? 

Michelle Guth: Absolutely. And in many cases, it's a seller expense, and quite often we'll find that sellers will even refuse to pay for the appraisal, even though they've agreed to on the contract. They will not give the lender a credit card to pay for that cost of that appraisal upfront. And their argument typically is because the appraisal is a requirement of financing, so even though they agreed to pay for it, they don't want to pay for it until we get to closing to ensure that the transaction is going to close. 'Cause many times, those appraisals are not transferrable. So they don't want to pay that fee. Again, it's just setting those expectations with the clients and working with a mortgage company that's going to be sensitive to your situation, to try to make sure that we're watching out for your financial situation with regards to those final numbers.  

Dave Burnett: And I will say this, with Diversified Mortgage, with Michelle, if you have questions about this going in, because for somebody that doesn't do this every day, talking earnest money and appraisals. If you have questions, you can call Michelle and sit down and talk with any one of her staff and find out what all is involved. How do they get ahold of you, phone number-wise? 

Michelle Guth: They can give us a call at 8537878. Visit our website, which is dmgloans.com. And hey, Dave, did I mention we're an Equal Housing Opportunity Lender.  

Dave Burnett: I already said that, right at the top of the show. She missed that part. Some of those legal things you've gotta say in there.  

Thom: Exactly 

Dave Burnett: But you know, there are so many ... And I apologize right now for both of you, Michelle and Thom. You guys deal in this stuff every day. For the average person who's going to make this transaction every five or six or eight or nine or years, or maybe never. Some of these things, it's just all foreign and it seems like every time you turn around, somebody needs some more money or somebody needs a signature or something else has to be done.  

Michelle Guth: Exactly 

Dave Burnett: It can be overwhelming.  

Thom: Yeah 

Dave Burnett: At times, to try to ... It might be something, it might even scare some people off from going ah, I don't want to go through all that. But you're both available to answer those questions and to sit down beforehand. In fact, getting pre-approved for a loan, something probably you would recommend to do.  

Michelle Guth :Oh, in every scenario. Again, we talked in the past where pre-approval versus credit approval are two very different things. Definitely sit down with a mortgage advisor, go through the full credit approval process where they're reviewing your income, reviewing your assets, your credit. You're just not giving them information over the phone. They're saying, "Okay, you're pre-approved, credit looks good, start shopping." You really need to provide all the appropriate documentation and ensure that the numbers they're using are in fact what will be required to qualify.  

Dave Burnett: And I would assume, in this day and age Thom, where I mean ... Homes are being bid on right now.  

Thom: Oh yeah.  

Dave Burnett: There's such a low inventory, that you want to be ready. You want bullets in the gun ready to go.  

Thom: Exactly. There's almost no seller out there that I know of that will accept a contract on a buyer that has not been pre-qualified yet. And majority of them require that prequalification along with the offer, especially on those multiple offers. If they're getting five or six offers at a time, they're gonna go with the ones that have that pre-qualification in place and verified that they're ready to buy the house.  

Michelle Guth: And it's not uncommon for me to even get a call from a listing agent, where they're saying, "We received your credit approval letter. We want to confirm, have you pulled credit. Have you seen their income, and have you seen their assets?" They want to make sure it's not a pre-approval, that it is in fact a full credit approval.  

Thom: Yes. We've actually seen some listing agents and some sellers who are actually pushing back a little bit and wanting more detailed qualification letters, making sure that all that stuff is in line.  

Dave Burnett: Michelle, advice that you might have for somebody ... I'm going to kind of throw a question out of left field here at you. We'll see how you do on this one. In the case where homes are being bid on and somebody's qualified for X amount of dollars, what should that person be prepared for in case they get into a bidding war and suddenly that value starts going up a bit? Do you have some advice for them? 

Michelle Guth: Well, that is something we talk about upfront, and basically telling them that again, there's not a lot of negotiation room in our current market environment. So I always encourage them, follow your realtor's lead. Your realtor's the one who's going to have done the research on that specific property. Is it in the market or an area of the market that's maybe a little more aggressive than others. So I do forewarn them that in many cases, that if your realtor suggests that you may have to go over list price, especially if you need seller assistance towards the closing cost, be prepared for that. But again, follow your realtor's professional advice. They know the market, and if they suggest that we're going to have to go over list price, don't be surprised 'cause that's pretty common in our marketplace at the market.  

Dave Burnett: Michelle Guth with Diversified Mortgage. Again, if somebody wants to get ahold of you to chat about these issues, how do they do it? 

Michelle Guth: Give me a call. Love to visit with you. I am at 8537878.  

Dave Burnett: Alright, very good. We'll continue on the other side. This is the Idaho Real Estate Buzz. As we continue here on 580 KIDO and FM107.5.



Segment #3


Dave Burnett: This is the Idaho Real Estate Buzz. I'm Dave Burnett along with Tom Dallman of Core Group Realty. CoreGroupRealty.com, that is the website for you to go to. Anything we talk about on this show you're gonna find it there, as well. We talk about different homes or some of the topics we have, Tom has blogs that are out there. 

Thom Dallman: Sure do. 

Dave Burnett: You can find out more about, as well. Plus, we're gonna give you some news here in this segment. 

Thom Dallman: We like some news, right? We would love to know what's happening out there and a lot of our news comes through the rumor mill a lot of times, but one of these actually was reported recently in the news. 

Dave Burnett: I guess this would be good news unless you were one of those who you just don't wanna see Idaho grow. 

Thom Dallman: Yeah, I guess you could say that. 

Dave Burnett: That's when it becomes bad news. 

Thom Dallman: It's one of those inevitable things. They've reported that we've doubled in size over the last 10 years and will continue to double in size again over the next 10. It's inevitable with the cost of living being so affordable here and these companies moving into town and all that stuff really makes it an attractive city for people to come to. We're continuously being rated at the top of all these lists for places to live, livability, affordability, and all that stuff. It's somewhat inevitable that we're gonna grow. 

Dave Burnett: Here's the good news if you're one of those that you don't like growth. Core Group Realty has some great listings out in the country. 

Thom Dallman: Yep, yep. We sure do. 

Dave Burnett: They can help you get relocated out in Middleton or out into the nether lands, get out of the main area. But we do have a list and we've heard this past week. We've heard some rumors floating around here recently about some new subdivisions going in. 

Thom Dallman: Yeah, yeah. There's one that just was recently on the news talking about out there just past Micron, how they have petitioned the city to get annexation so that they can get city services hooked up into a roughly, it sounds like, 800-home subdivision. That's gonna be put in there along with four other subdivisions that have already been started out that way. Yeah, a lot of growth out that southeast side of town where there's lots of space out there for this type of development and growth and stuff like that. 

Dave Burnett: Yeah, you think about it, it does not seem like that long ago that JR Simplot was out there cutting the ribbon to open Columbia Village. 

Thom Dallman: Yeah, right? 

Dave Burnett: I still remember very clearly, in fact. Radio station I was with at the time did a home giveaway. We gave away a home, yeah, to help promote the Columbia Village and JR was out there in all his glory with his ribbon cutting. That doesn't seem like that long ago, but man, Columbia Village is now one of the established communities in that area. 

Thom Dallman: Oh, huge established community. People just love that part of town and that area, as well. We have buyers that specifically ask for Columbia Village and just want to look only in that subdivision. Now I hope that this will give them some more opportunities for people who do want to live on the edge of town and still have access to downtown to everything, to the Green Belt, going down the highway there and all that fun stuff. 

Dave Burnett: Yeah, I guess if you're wanting to go up Highway 21 or if you work at Micron or one of the areas around there, very convenient to have that there. 

Thom Dallman: Super convenient, yeah. There's a lot of stuff going in out that direction, as well as South Boise, too. There's some rumor mills, or some rumors, going around that a big commercial retail expansion's gonna be happening on South Cole, towards the end of Cole as you get past Amity, is it? Or Lake Hazel. 

Dave Burnett: For those, I don't know what year you moved to the valley. 

Thom Dallman: We moved here in 2002. 

Dave Burnett: Okay. At one time, the Cole exit was a nightmare. 

Thom Dallman: Yep. 

Dave Burnett: Getting across there, and I'm not sure that was before or after you moved here. It was specifically designed to prevent growth south of the city. 

Thom Dallman: Oh. That's not gonna prevent that. 

Dave Burnett: That was the whole reason. No, that was the whole reason. There used to be a water park out there, was it Wet 'n Wild? There was a big water park up there and the whole thing was designed to prevent growth to the south, but then they wound up putting- You have Desert Street out there and you got- 

Thom Dallman: Some beautiful homes along Desert. 

Dave Burnett: Some really nice. That whole area's just ready to explode. 

Thom Dallman: Yep, yep. There's also a rumor mill that Cory Barton has petitioned for some space out there to do a 400-home subdivision out that way, as well. Once again, rumor mill unverified, but that's what some of the feedback I've been hearing through various associations like the Builders Association and so forth. That's gonna be happening around town. Yeah, once again we've talked in the past about new construction and how new construction's prevalent because the low inventory. Normally it's a fact when you have low inventory, you're gonna end up with higher new construction. We did actually get, for the month of May, more resale homes, homes that are existing that went on the market. Our sales actually went up in May, which tends to happen during the Spring. 

We actually had about 1,600 sales in May versus the 1,365 that we had in April, of which, interestingly enough, for Ada and Canyon County both months we had 301 new construction homes. I thought that was an interesting fact that the same amount of homes each month for new constructions. 

Dave Burnett: Just about what the contractors can handle. 

Thom Dallman: Yeah, right? Exactly. 

Dave Burnett: I know on a national level, I heard an article or saw a story on TV talking about the cost of homes when out about 1% nationally. How did we do in the valley? 

Thom Dallman: Yeah, we did the same thing, pretty much. When you look at single family homes in Ada and Canyon County, April versus May, April we were at $257,000 as an average sales price and went up to $262,000. Right about 1% increase, as well, in the Treasure Valley. 

Dave Burnett: Which, if you're selling a home, that is great news. It's a double-edged sword if you're trying to buy a home. That's not good news. The price is going up. 

Thom Dallman: Luckily, the rates have continued to be really good on loans as we hear from Michelle Guth at Diversified Mortgage, as well as it's just so affordable and so easy to get into a home right now. We're still at a really good price point for homes when you consider the average home price nationwide and everything. We're at a good price point and still a great time to buy. 

Dave Burnett: Which, then again to complete the circle, is part of the reason so many people are moving here. It's very affordable. 

Thom Dallman: Exactly. 

Dave Burnett: Ran into somebody just this past week, moved here from Southern California. They sold their home for $480,000 down there. It was just an average, modest home. They came here and bought something cash. 

Thom Dallman: Yep! There's a lot of that happening. 

Dave Burnett: They just scratched a check for something cash. 

Thom Dallman: Exactly. I just chatted with someone, recently, from Pittsburgh who did pretty much same thing. Sold their home there and was able to buy something here for almost half the price and equivalent home. 

Dave Burnett: If you can do that, I have to say this, you can't blame somebody for coming here, looking at the lifestyle, looking at the quality of life, the low crime, the affordability, and if they've got the means to do it, you can't blame anyone for doing it. 

Thom Dallman: Exactly, exactly. It's living the American Dream to be able to up and move and be able to do that. 

Dave Burnett: It's happening all throughout the Intermountain West, down in Utah and different areas. I know the Reno area continues to grow. 

Thom Dallman: To grow, yeah. 

Dave Burnett: In Nevada. Getting away from the major corridors, the major cities, it's happening everywhere. 

Thom Dallman: Exactly. 

Dave Burnett: If Core Group, if we are looking for properties out in the country, you got those for us. 

Thom Dallman: We've got properties almost everywhere. Whatever you're looking for, I think we have a little bit of everything. All price points. Whatever you're looking for, we've got what you need. Yeah, it's available. Contact us. 

Dave Burnett: We'd like to just encourage you to go to CoreGroupRealty.com. That is the website, CoreGroupRealty.com. Or call 933-7777. A customer service agent standing by right now. This isn't a licensed agent, it is somebody who's just knowledgeable in the field and can direct you to where you need to go. 

Thom Dallman: Correct, yep. 

Dave Burnett: Here on a Saturday afternoon, somebody is standing by to take care of those needs for you. If you're thinking about selling your home, if you're thinking about relocating or know somebody is, or you're just up in the air nervous about the whole thing, you can come in and have a counseling session just to talk and say, "Here are your options." 

Thom Dallman: Yep, exactly. There's a lot out there. Like I said, a little bit of everything for everyone. 

Dave Burnett: It may not be the time to sell. 

Thom Dallman: Exactly. 

Dave Burnett: May not be the time for you to sell your home. I think that's the nice thing with the folks at Core. They're going to be very open and honest with you as to whether it's a good time to buy or sell, what honestly is out there available for you, not painting pie in the sky, but just talking about the fact that, "Yeah, it'll be a bit of a challenge." That's the challenge that the agents here at Core are up t. 

Thom Dallman: That's what we love, is getting people in here and finding out their unique situation that they're in. Not everybody is in the same boat. You need to really have someone that will sit down and chat with you about that. 

Dave Burnett: You can do that. 933-7777, the phone number. CoreGroupRealty.com is the website. We'll continue. This is the Idaho Real Estate Buzz here on 580 KIDO and FM 107.5.



Segment #4



Dave Burnett: This is the Idaho Real Estate Buzz. I'm Dave Burnett along with Thom Dallman of Core Group Realty, coregrouprealty.com. That is the website to go to, 933-7777. Just dial 933 and start hitting the sevens till it rings. Somebody will answer ... 

Thom Dallman: It'll get through to us eventually. 

Dave Burnett: Somebody will answer and answer your questions. Maybe it's about a segment as we're about to talk about. I said the three Ms, but you corrected me, it's really kind of two Ms when it comes to mobile homes, manufactured homes, modular homes ... 

Thom Dallman: Correct. Correct. 

Dave Burnett: ... and what the difference is and somebody may want to make an investment one way or the other. 

Thom Dallman: As we talk about a lot of times in these segments, in our philosophy, there is a home for everybody. Every home serves its purpose for the type of buyer for the type of homeowner and so forth. Mobile manufactured modular homes, they serve a purpose for people who do need home, affordable home, housing that is of good quality and really help people out to get into whether it's a great starter home, a greater way to start a first investment, great for rental properties as well. They definitely serve a purpose and serve a clientele. So, especially as far as the affordability of them go. 

Dave Burnett: I think where manufactured homes really have gotten a bad rep and that comes from ... If you at a manufactured home or a mobile home park that's in disarray, in disrepair ... 

Thom Dallman: Exactly. 

Dave Burnett: ... it kind of tarnishes and gives a bad image. 

Thom Dallman: Exactly. 

Dave Burnett: There is some manufactured homes I've seen set on property on the country. They're just gorgeous.  

Thom Dallman: Oh yeah, yeah. I've seen some up in the countrysides that have just been so beautifully done, and just a great home to live in, sound home as long as the upkeep's on, are done on them. They will last just almost as long as a stick-built home. So, as long as the upkeep's done.  

Dave Burnett: Let's talk a little bit about that. So, when it comes to manufactured or mobile homes ... 

Thom Dallman: Mobile homes. So, mobile home and manufactured home are pretty interchangeable. The common concept for those are that they are usually built on some kind of a framework that allows for them to be put on wheels and moved around or even in some cases they're built on wheels to be moved around. Back in 1976, HUD came up with some standards for those type of homes. So, all the homes prior to 1976 were actually mobile homes, were considered mobile homes, and then that's when the term manufactured home came out when all the government codes came out. 

Dave Burnett: Before that, they were referred to as trailers. 

Thom Dallman: They were referred to trailers as well.  

Dave Burnett: People who lived in the trailers [crosstalk 00:02:59] poor. They were trailers ... 

Thom Dallman: Exactly. 

Dave Burnett: ... as opposed to manufactured homes.  

Thom Dallman: Exactly. Some of those terms still carry through to today. I think you mentioned kind of the park, the trailer park. The term trailer park has been a term that we've used throughout the years and generations and stuff. At the end of the day, that's the general concept is that they are homes that can be on rented lots so that if you decided, "Hey, I don't wanna live in this park anymore," you can then move it to a different park disconnected and actually move it around. So, that's one of the nice conveniences of a manufactured home is the ease of ability to move it around and so forth. Manufactured home, they're built on that, like I said, that chassis or that frame, some with wheels, but the convenience of them is that they're kind of built per two code in factories. 

So, the cost of labor, the cost of materials and stuff like that tends to be a little bit lower or tends to be lower because they're able to buy in bulk. Those manufacturers are able to buy in bulk, have a whole bunch of materials set aside in warehouses so that they can put those into whatever they're building and so forth. Similar concept with the modular home. The modular home, those are homes that are built in a warehouse and into segmented parts that they transport to the location and then attach it to a foundation. So, they are actually affixed. 

Dave Burnett: My father-in-law and his wife, they live in Colorado in a modular home that came in two parts, that came [crosstalk 00:04:46]. 

Thom Dallman: Comes in two halves. 

Dave Burnett: Came in two halves. Big crane took it, set it down on the foundation. They sealed the thing up. Done. 

Thom Dallman: Exactly. 

Dave Burnett: Housemaid is like, "Wow." 

Thom Dallman: Exactly. 

Dave Burnett: So, the foundation seem like it took longer than anything. 

Thom Dallman: It's amazing the work that they can do with those modular homes and there are some modular homes where you just walk in and you would have no clue that it is a home that was built in a factory and brought to that location. So, they've done some beautiful work and then really some of those conveniences with those modular homes are that you can actually go to the stores or to the retail space ... 

Dave Burnett: Factories. 

Thom Dallman: Yeah, the factory space, and actually pick your amenities inside the house, your countertops and carpeting and things like that, just like a regular stick-built homes. So, they have that flexibility and those options to put those nice, nice upgrades into the homes. 

Dave Burnett: I know. As we've talked, we've talked about manufactured home that's out, off of [inaudible 00:05:53] Road that's on some acreage ... 

Thom Dallman: We actually have that one. 

Dave Burnett: ... that's out there. That is the nice thing. You can go and you can place these things on acreage. In some cases, if you want to build a home, you got it done. It's done right then, and then you could work on building a home on the acreage.  

Thom Dallman: Exactly. I've seen that done a lot of times where ... Like you said, they put the manufactured home in. They start working on their own construction and then they can either remove it, move it to another part of the land, rent it out. Manufactured homes are popular for rentals as well to be able to get that little passive income on a low price, with very little expenses going out for the manufactured homes. 

Dave Burnett: Now when it comes to financing ... Well, Michelle Guth I guess would be the one to talk to. It is a little more difficult and it is ... 

Thom Dallman: It is. 

Dave Burnett: ... [crosstalk 00:06:48] process of financing for a modular or a mobile home. 

Thom Dallman: It is one of the things that we tell clients if they are looking at manufactured or modular home is that we will have to get some kind of a certificate of ... A certificate showing that it's been affixed to the property and then as well we have to show that it has ... It's only allowed to be moved once and that's from the manufacturer to its current spot. So, if it's been moved more than once, lending may not loan on it, give a loan on it. 

Dave Burnett: You may have to come up with a private loan or have [crosstalk 00:07:21]? 

Thom Dallman: Exactly. Private loan or ... Then we can look at alternative sources for financing for that stuff as well. [crosstalk 00:07:31]. 

Dave Burnett: I was just going to say, any other thoughts that you have as far as being a real estate agent and things that people may avoid? Obviously, that'll be one is if it's been moved more than once, something like that ... 

Thom Dallman: Exactly. 

Dave Burnett: ... like the things that you might avoid or look for if you're looking at either modular or manufactured home. 

Thom Dallman: Well, one of the things that you really want to look for if you're looking at that is, is the land that it's on rented or is it actually a paid-for lot, an owned lot that goes with the property? So, that's a big factor in determining what you're purchasing because you could be just purchasing the manufactured home and not the land and have to pay rent on that, which then if you have that rent on top of whatever mortgage you get on the property, it could come into play. Then a lot of those that aren't rented lots will have homeowners' associations associated with it. So, now, you're paying rent and a homeowners' association, so that's one of the main things that really people should be aware of and thinking about on those particular things. The nice thing is taxes that it's a different tax process for manufactured homes.  

For modular homes as well, the suspense are usually a little bit lower so you pay less in taxes every year, so that's one of the conveniences and one of the things that we want to look into as well when we're looking at the properties. Just like a stick-built home, I encourage everybody to get inspection done. Every home no matter what's size, no matter what condition, even new construction homes, I feel needs an inspector to go through just to verify that everything is up to code, everything's been done the way it should be, and the safety and the soundness of the house is in line to protect the client. So, even from the smallest little manufactured home all the way up to the biggest million dollar home, I think that everybody needs to make sure that they're getting that inspection done. 

Dave Burnett: Other thing, if you're getting a manufactured home, you might keep in mind you're either going to have to hook up to city sewer or you're going to have to put in a septic system and ... 

Thom Dallman: Correct. 

Dave Burnett: ... it's going to cost you one way or the other. 

Thom Dallman: Correct 

Dave Burnett: That's an added fee that you may not be thinking of when you're thinking of getting a manufactured home. 

Thom Dallman: If you're going to buy a brand new one and you have some land that you want to put it on, that's definitely a process that you're going to have to go through to figure out what's the best way. Do you have access to city water or are you going to have to dig for a well? Does your land have access to a well to be able to get water to it and so forth? So, definitely, a lot of things that you have to think about when you're going to build and put in a new manufactured home or a modular home. 

Dave Burnett: Which might be the right choice for you. And again, if you want to talk to an agent about it and what's available out there and manufactured, modular homes, as Thom mentioned, they ... In many cases much more affordable. In some cases, you're going to be out on some nice real estate out in the country. If you want to talk to somebody at Core Group, you can do that. They've got the people that specialize in every kind of home. They got people who will guide you through the process as well. Coregrouprealty.com, that is the website. Thom, thank you so much. We get to do this every Saturday. I do appreciate it. 

Thom Dallman: Thank you for letting me be a part of this. 

Dave Burnett: 933-7777, that is a phone number to call. And don't forget, you get more with Core. We'll see you again next Saturday here on 580 KIDO and FM 107.5.



Diversified Mortgage

Core Group Realty


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