208.639.7724

We have a packed show for you. As usual we are touching on some of our current listings, and then we are jumping right in with Michelle Guth of Diversified Mortgage, talking about purchasing a home right now as a young adult or recent graduate and what that looks like. Don't miss Dave and Thom's thoughts on purchasing in our current economic climate or Thom's input on what new real estate agents don't realize the job entails. Like I said, a packed show, enjoy!

Seg 1:

 

Dave Burnett:                    This is the Idaho Real Estate Buzz. I'm Dave Burnett along with Thom Dallman, the co-owner and designated broker of Core Group Realty. CoreGroupRealty.com. That is the website for you to go to. In fact, you can go to it right now, and check out all of the things we're gonna be talking about today or call 933-7777. Thom, welcome back. It's another great day to buy or sell a home.

Thom Dallman:                  It always is. It's a great market for anybody out there looking. It takes a little bit of skill getting you in to a house, but that's happening. We go all kinds of fun stuff happening right now.

Dave Burnett:                    The good news is, the markets loosened up a little bit. I mean, there was a period there. Man, there was not much available.

Thom Dallman:                  Exactly.

Dave Burnett:                    But things are loosening up a bit.

Thom Dallman:                  Things are loosening up. We've got some of our secret listings, otherwise known as coming soon properties coming on the markets. You know, more people contacting us, and we encourage everybody. It's a great time to sell. Everything's selling at top dollar right now. So definitely worthwhile to reach out to us if you're even thinking about getting your home listed.

Dave Burnett:                    Yep. Well, let's jump right into it.

Thom Dallman:                  Sure.

Dave Burnett:                    Let's talk about some of those secret listings. Those that want a little head start on looking at properties.

Thom Dallman:                  Exactly. I've got John Good here. Thanks for joining us, John. He's one of our listing specialists.

John Good:                         You're very welcome. Glad to be here.

Thom Dallman:                  I wanted to bring John in today to chat a little bit about a couple of his coming soons that he has in secret listings. So we just figured we'll jump right in and talk a little bit about each one. The first one being 2921 Chester Lane.

John Good:                         Yeah, and that's out in Caldwell. It is coming on at $160,000. It is a three bedroom, two bath, two floor. The second floor is really only a bonus room. So don't be afraid of that. It's just got the bonus room above the garage. It is just under 1500 square feet. It does have a two-car garage and, again, the bonus room is just above that. Built in 2000 and sits on just under a quarter of an acre.

Thom Dallman:                  Yep.

John Good:                         The other one I'd really like to talk about is 7830 West Cummins Avenue in Boise. Really hot area. Great access to the highway. As it sits on bench, coming on again at $160,000. It's in Randall Acres subdivision. It is a three bedroom, one bath single level. 976 square feet. So just under that 1,000-square foot mark. It does have a carport, so not a garage. Built in 1961 and, again, that one is on just under a quarter of an acre as well.

Thom Dallman:                  Wow. Those are some great price points for the Boise area.

John Good:                         For sure.

Thom Dallman:                  Yeah.

Dave Burnett:                    So those would really be great investment properties if somebody was looking to, as we talked about last week with Michelle, you know, start to build that little empire those would be great investment properties.

Thom Dallman:                  Exactly. Those are great rental properties for sure.

John Good:                         Excellent price points to start out with, and that's what we're working with. The other one, and, again, this one's in Nampa. 1525 Southside Boulevard coming on at $300,000 even. It is not in a subdivision as it sits right on Southside Boulevard. It is a six bedroom, three and a half bathroom. Just under 3,000 square foot or just over 25 at 2,682 square feet. Full three car garage built in 1989. Sits on over an acre. And, again, you have a well with that property. But, again, you can have chickens, horses, plenty of garden space. Just over an acre. Keep that in mind.

Thom Dallman:                  Yeah. For those people who are wanting to have that little bit of agriculture in their backyard.

Dave Burnett:                    So, there's lots of things you can have, but one thing you don't have is an HOA.

John Good:                         Yeah. Exactly.

Thom Dallman:                  HOA to ... No homeowners HOA.

John Good:                         And that's what really makes it a gem. Now, speaking of gems, we have another one at 1543 South Hall Lane as a coming soon secret listing out in Pine, Idaho. It's a little bit of a trip.

Thom Dallman:                  This is one of my favorite ones to talk about.

John Good:                         It is a little bit of a trip, but keep in mind this is a recreational property. Okay? So once you have possession of this property, bring your family from all over the country. Make a week, make a month of it. Okay? We are coming on at $450,000. This one sits on just under 22 acres. It is used as a retreat. There is a separate dining hall. So I don't want to throw around the word compound or anything like that, but it is more of like a campsite. So you've got your barn with stalls for horses. You've got what's known as the grand hotel, which is a three-floored, basically a hotel with bunk rooms. It does have a master bedroom in the middle floor. Okay? So your second floor. Great property for recreation. Has out buildings with six stalls for, you name it, your boats, your RVs, your get around side-by-side, your four wheelers, anything that you'd want to bring along with you.

Dave Burnett:                    You know, we're talking about maybe a family buying this. But is this a property that maybe a church group or an organization could buy as well as a group retreat?

John Good:                         Exactly. Yeah.

Thom Dallman:                  It's got a whole lot of possibilities.

John Good:                         I can see interest in it from the full spectrum.

Dave Burnett:                    Now, here's my question. Is this still in the coming soon secret listings, correct?

John Good:                         Yes.

Dave Burnett:                    How many photos have we got to ... I mean, obviously if you're looking at a property like this, it's gonna take extensive work to get a photographed.

John Good:                         Yes. We actually have aerial photography coming out this week. Next week we'll have elevation photos of the actual home sites. Okay?

Dave Burnett:                    Okay. So this is whether you or an individual and looking to kind of build something for your family, which could be a great family retreat or if you were looking for a group. So what would be the maximum, and maybe we're talking prematurely here, but what would be the maximum sleeping arrangements for this?

John Good:                         Oh gosh. Because there really is one master bedroom, and I would say definitely two people in there, probably the heads of the household.

Dave Burnett:                    Right.

John Good:                         Okay? Kind of kings of the castle there. Past that, the sky is the limit realistically.

Thom Dallman:                  I would imagine with 20 acres you could pull up RVs, set up tents. You could just ... It sounds like it's a little bit unlimited how many people you want to get up there.

John Good:                         Again, through the front of that property, keep in mind Hall Lane is a private road. So that is your road to the home there. I'll call it a main road, but keep in mind it is dirt up there in Pine. The fact that Lester Creek runs through the front of the property, and it kind of pulls up on almost two acres. It has its own kind of beaver pond and sort like a wetland area up front. And with that, comes along all the foliage. Of course, it stays wet there pretty much all year round. So you've got plenty of growth. So you're private. You're blocked off from people from the road viewing you, and you don't see the road from the property.

Dave Burnett:                    I would imagine with that wetland there's wildlife abundant that comes into there.

John Good:                         Yeah. Yeah.

Dave Burnett:                    Let me ask you this question. When you first saw this property, when you went up to view this property, what were your thoughts as you went into it?

John Good:                         My thought was when I was driving around with the homeowner throughout the property, I was thinking, "I want to see the whole thing. I didn't drive up here for half the show." You know? That was my main thought. So I got to see everything. Like I said, it's a little bit of a trek out there, but it's well worth it.

Dave Burnett:                    This is up in Pine. It is in the mountains. If it's something that you're interested or maybe you know somebody. Maybe you have somebody in your church or someone in your organization or group who might be interested in this as well, you can see it on the coming soon, the secret listings at this point. It's not live yet, but a great way, Thom, to get a look at it to kind of get a head start on it.

Thom Dallman:                  Yeah. As we talk about, in this current market where everything is selling so quickly, it's always good to have that little bit of an advantage and be able to see these homes that are in the process of getting ready to come on the market. But you get that first glance. You get that first look at it before everybody else gets to see it and have the opportunity to maybe take a look at it.

Dave Burnett:                    Yeah. I'm really curious about this property. It's not that I would ever buy this in a million years, but I would like to see it.

Thom Dallman:                  Exactly.

Dave Burnett:                    That's why the website's nice. I don't have to call down here to Core and say, "Yeah, I'd like to make an appointment to see." I can see it on the web.

Thom Dallman:                  See with the pictures and all that. Yeah.

Dave Burnett:                    [inaudible 00:08:13] have a look at it, because I-

Thom Dallman:                  Once we get them uploaded.

Dave Burnett:                    I'm absolutely fascinated by this property.

Thom Dallman:                  Well, maybe you and I should just take a trip up there.

Dave Burnett:                    We could buy it and start our own little compound up there. Oh wait, we can't call it a compound. It's not that. But it truly is fascinating. Now, let me ask you this. For the person who is serious about going up there, they can call down here to Core Group 933-7777, and obviously it's not something you're just gonna just pop out and go see this morning, but you can make arrangements as soon as it comes live to take a look at it.

Thom Dallman:                  Yeah. Definitely.

John Good:                         Yeah.

Thom Dallman:                  Would you recommend how much time, not just travel, but how much time to explore the property?

John Good:                         I would say make a day trip of it. Don't just check out the property itself, unless you're familiar with the area, check out the whole area. See what it has to offer. I mean, there's boating, hiking, fishing, and that's just summertime. Think about the wintertime activities, snow snowmobiling, cross country skiing, the works.

Dave Burnett:                    Just so you know in Pine there is a restaurant. There is facilities in Pine as far as a store. There is a restaurant there with a bar in it.

John Good:                         Yeah.

Dave Burnett:                    Not that I know a lot about it, but-

Thom Dallman:                  Sounds like you know a little bit about it.

Dave Burnett:                    I seem to remember an incident that involved a dirt bike and the bar and something. But it was a lot of fun. Pine is a lot of fun to get up in there to get into the wilderness to take a look at that.

Thom Dallman:                  And just to be able to get away from the hubbub of general life and and be able to get up there in the mountains and just enjoy that is such a peaceful way to just relax for a vacation if only for a getaway, for family reunions.

John Good:                         Surprisingly excellent cell coverage on the property.

Thom Dallman:                  Really? yeah. That's awesome.

Dave Burnett:                    How many acres is it again?

John Good:                         It is 21 ... Let me get the exact for you.

Dave Burnett:                    Okay. Because so rarely does property like this come open. You know, people are always thinking, "If I could just find this or I could" ... Well, here it is.

John Good:                         It is 21.847. Okay? So we're just under 22.

Dave Burnett:                    Just shy of 22 acres. Perfect. So if somebody wants to take a look at this property or anything if they may see on a website, Thom, the best and easiest way to get a hold them?

Thom Dallman:                  Give us a call. 933-7777 so we can, yeah, schedule someone to get up there or just take a look at the pictures at CoreGroupReality.com.

Dave Burnett:                    Of course, the other properties as well here in the valley if you want to take a look at those as well. Thanks for coming in today. Do appreciate it.

John Good:                         Yeah. Thanks for having us.

Dave Burnett:                    Maybe we need to take a day trip and go check this thing out.

Thom Dallman:                  Exactly.

Dave Burnett:                    This is the Idaho Real Estate Buzz. We will continue on the other side here on 580KIDO and FM 107.5.

 

Seg 2:

 

Dave Burnett:                    This is the Idaho Real Estate Buzz. I'm Dave Burnett, along Thom Dallman of Core Group Realty, and Michelle Guth from Diversified Mortgage, Equal Opportunity Lender, as we get together and talk about all things financial, because as we've mentioned before, money's what makes the world go round when it comes to buying and selling a house. Not many people can just scratch out a check and buy a house in this day and age. Michelle, welcome back. I want to talk to you about something that can effect a lot of people. It's that first time buying a house. How in the world can a couple, or an individual going out on their own right now, afford to buy a house? Is it possible, and what do they have to go through?

Michelle Guth:                  It is absolutely possible, and good morning, gentleman. I'm glad you bring that up, because I'm actually getting a lot of calls recently from individuals that are recently graduating from college and so forth, have some concerns that they haven't been able to save any money, because they are just coming out of college, or they have student loan debt. I think we would, we'd benefit today from just kind of starting from the beginning on how best to approach credit, and then maybe what some program availability would be once we're at a level with our credit that we could potentially qualify for a home.

Dave Burnett:                    Okay. When it comes to credit, there is good credit, there's bad credit, and there's no credit. What do, obviously bad credit, you know that that's gotta be fixed, that's gotta be repaired, and that's something that it's important for people to understand and know what their credit report looks like.

Michelle Guth:                  Absolutely. I encourage everybody to pull their credit report through one of the government sponsored entities, to just verify everything on there at least twice a year, just to make sure there isn't erroneous information, or misreporting, but as far as individuals that maybe have limited credit, the first thing I would recommend doing is getting a credit card, which is much as, you know, we always tell people, "Try not to charge." It's unfortunately a necessary evil to establish credit, is it makes up about 35% of your overall credit score, is that revolving usage of how you handle that credit card.

Dave Burnett:                    So, not necessarily a car loan, well that helps.

Michelle Guth:                  It does. Yep That's actually part of yeah, the credit, but they actually, they look at revolving credit more significantly than installment, because installment is pretty much, it's a set payment every month that people tend to budget for, whereas credit reporting agencies look at the credit cards and say, "If you have a limit of $5,000, how are you using that credit on a monthly basis?" Are you maxing out your credit card? Are you using a little bit of it? Paying it back responsibly? Or, are you seeing significant fluctuations in your amount you're advancing from month to month.

Dave Burnett:                    It really is a more accurate indicator of how somebody behaves with credit.

Michelle Guth:                  Exactly, so hence why it makes up such a significant part of your credit score. Having credit mix is important, but the credit card, in my opinion, is the first thing you want to get established on your credit report. And again, we've talked about it before, but I say utilize the card monthly. Get a small charge against it, even if it be a tank of gas, and then pay it off and do it monthly, just so you have that history on there, but keep your balance at all times very low in comparison to the available limit on the card, and that will definitely help with credit scores.

Dave Burnett:                    Okay. I think a lot of people when they first take out a credit card, a younger person, they're going to get a 300 or $500 limit, odds are. They need to keep that down to just a third of that limit?

Michelle Guth:                  Exactly. I say, always say, try to keep it under 30% at the most at any given time, if possible. 50%, from what a lot of the credit reporting agencies say, is kind of the threshold before it really starts negatively impacting your credit score, but we try to say rule of thumb, stay under 30%, and even lower would be better yet.

Dave Burnett:                    Okay, now we've talked about here recently some changes when it comes to student loans. How does that effect that first time home buyer?

Michelle Guth:                  It depends on the program that we're trying to obtain. So, for example, conventional Fanny May came out recently stating that they would now consider income based repayments as the payment to be used when we're calculating the debt to income ratio, which is great, because recently in the past, regardless of what the credit report said, we had to use at least 1% of the available, or excuse me 1% of the outstanding balance. Now, if you're in an income based repayment plan, as long as it reports at least $1, we can use that. If it's reporting zero, then we're going to have to go back to the old calculation, but if you are making minimal payments, we can use that.

Dave Burnett:                    Okay. All right, so here I am, I'm a college student, or maybe a couple looking to buy that first home. Credit report, making sure you have good credit, and when I say good credit, what are we looking at score wise?

Michelle Guth:                  Well, that's somewhat subjective, again, depending upon the credit score. I love to see my clients at 720 or greater, however, a lot of the first time home buyer programs are very flexible, and if you have a credit score, for example, of 640 or greater, you have opportunity to even get down payment assistance through our state bond program. 640 is a reasonable credit score for most of our consumers to have, so it's not uncommon for them to meet those requirements.

Dave Burnett:                    Okay. Let's talk about some of those firs time loans for people. What's available out here?

Michelle Guth:                  There's several options. For example, again, we've talked about the bond program. They have some grant programs available. There's also a down payment assistance program, where you can borrow the down payment, so for example, if you're doing a conventional loan, that requires 3% down for one of the programs that we're referring to, they will give you a loan of up to 2.5%, so in essence you could be coming in with as little as .5% of your purchase price, which is very nominal.

Dave Burnett:                    Okay, Let's say it's $150,000 house. I want to talk some hard numbers here, not percentages. It's $150,000 house, what am I going to have to have with that kind of program to ...

Michelle Guth:                  Make me do math in my head, Dave. 750 bucks. Good thing I can do it.

Dave Burnett:                    See, that's why I asked.

Thom Dallman:                  There you go.

Dave Burnett:                    So, that's something that actually, that's doable.

Michelle Guth:                  Totally doable. Absolutely. Then the FHA program, which tends to be a little more lenient with regards to debt to income ration, credit scores, and so forth, that is normally a 3.5% down payment, so utilizing that same program, where they get the down payment assistance, they need 1%. Again, we're looking at $1,500 in that scenario, which is going to be less than what they're going to need to rent an apartment, for example, first and last months rent, potentially [crosstalk 00:06:20] security deposit, all of that. They can get into a home very inexpensively. Some of these programs are based off of maximum income limits, but they're very generous, so again, most of my first-time home buyers do fall within the guidelines.

Dave Burnett:                    Now, when it comes to employment, is there a length of time you need to be employed, or is there ... How does that all work for that first-time home buyer?

Michelle Guth:                  Again, depends on the program, but typically, for any program, we want to see you have at least two years of employment history. Now, if we have a recent college graduate, for example, that has just graduated from school and has secured employment in their field of study, we will count their schooling as part of their history, so that will work for that. In that case, we generally want to see 30 days on the job before we close on the loan. It times out very well.

Dave Burnett:                    Okay, so that's the amount. A month on the job, that's actually pretty generous to be able to be considered for a loan.

Michelle Guth:                  Absolutely.

Dave Burnett:                    Okay. So, at this point, what does that college student or that couple, what do they do? They come and talk to you and to Diversified about this?

Michelle Guth:                  Yeah, absolutely. I think if you're in a position where you're wanting to buy, whether it be now, six months, or even a year from now, I think it's imperative to sit down, get game plan in place early on so that you're not down to the wire. Say, "Oh, I think I want to buy a house, what do I need to do?" Let's get a plan in place, work through the credit, make sure we're the best scenario possible to get that, hopefully desired price point, by maybe restructuring debt. There's different things that we can do and discuss to try to get them in the optimum scenario to buy that ideal home.

Dave Burnett:                    You know, I know from past conversation we've had, if somebody has some dings and marks on their credit, you have some advice for them you can give them as far as how to get that cleaned up and get that going.

Michelle Guth:                  Happy to, yeah. Again, it's not a quick stop shop. We are here for the long haul, so whether we are helping you now, a year from now, or we buy a house now, I'm here after the loan closes. We want to be that partnership that as your working and navigating through the home buying process, that we're here to definitely help you get to your end goal.

Dave Burnett:                    All right. Very good. If you are somebody who's just getting out of college, maybe getting ready to get married, or maybe your kids are in that position, and you want them to talk to somebody, Michelle Guth, their staff there at Diversified Mortgage, they are there ready to help you and to, remember, the end goal is to get somebody into a home.

Michelle Guth:                  It's absolutely. That's one of the best financial, you know, dreams that most people have, is to own their own home, so we definitely want to help them achieve that.

Dave Burnett:                    Yeah, and if you can start young, and work your way up and, you know, selling houses, moving, what a great financial investment. Then of course, Thom, after they get pre-qualified, they come talk to you.

Thom Dallman:                  Come talk to us so that we can get you out there looking at the homes.

Dave Burnett:                    That's perfect. Michelle, thank you so much. Somebody wants to get a hold of you, schedule a session to talk about credit, about loans, about first time loans, how do they get a hold of you?

Michelle Guth:                  Just give us a call at Diversified Mortgage, which is 8-5-3-7-8-7-8, and you can also visit our website, which is dmgloans.com.

Dave Burnett:                    They are real people with a real office, right there in Marigold, right behind the Jackson's there in Garden City. You can come by and talk to them, they're not just a button on the internet. We were talking about that a little bit earlier today. There's somebody who's there to actually help you. We'll continue on the other side. This is the Idaho Real Estate Buzz here on 580KIDO and FM107.5.

 

 

Seg 3:

 

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. If there's any confusion, it is Core with a C. CoreGroupRealty.com. 933-7777: that is the phone number. We've been talking about different things involving real estate, the future of real estate, those involved in real estate.

Thom Dallman:                  Mm-hmm (affirmative).

Dave Burnett:                    An interesting article came out this week talking about top problems for 2017, for the year ahead.

Thom Dallman:                  Yeah. The things that we're facing that are considered issues in the real estate industry, that ...

Dave Burnett:                    Mm-hmm (affirmative). Yeah. Real estate's still different than any other business.

Thom Dallman:                  Oh, yeah.

Dave Burnett:                    It's got things it faces, political and economical.

Thom Dallman:                  Exactly. It's all what it affects us, and a lot of that stuff affects the fact that people don't want to list, because they're afraid of the political stuff that's happening in the world.

Dave Burnett:                    Mm-hmm (affirmative).

Thom Dallman:                  Things like that, it does. It has a direct effect on everything that happens in real estate, so it's all correlated together.

Dave Burnett:                    Well, I think there's enough people who got burned in that last downturn of the economy, whether they got stuck with a house and had to go upside down on it, whether they lost their job and had to figure a way to keep their home.

Thom Dallman:                  Mm-hmm (affirmative). Exactly.

Dave Burnett:                    There's enough people, and those wounds are still fresh enough that people are just hesitant to jump in willy-nilly.

Thom Dallman:                  Exactly. Yeah. I think that's one of the big things that we're hearing, is now that we're at this top of the market for pricing, people can get great money for their homes.

Dave Burnett:                    Mm-hmm (affirmative).

Thom Dallman:                  They're reluctant to do that because then they are buying ... having to turn around a buy a home at the top of the market as well. If something does happen in the next year or so, then, yeah, their house values will decrease. There's a little bit of that hesitation out there as well. There's a lot of fact. When you're looking at real estate, you have to think about the long-term ups and downs. It's not just what's it going to be worth next year, unless that's what your plan is, to just live in a house for a year and sell it. Over the long-term, what's the gradual increase in value that's going to happen over time?

Dave Burnett:                    Yep.

Thom Dallman:                  That, people have to be aware of and think about.

Dave Burnett:                    I think people need to understand, though, you need somewhere to live.

Thom Dallman:                  Right.

Dave Burnett:                    In many cases, owning and paying a house payment is cheaper than paying rent.

Thom Dallman:                  Exactly. In a lot of cases, it is cheaper than paying rent right now.

Dave Burnett:                    Mm-hmm (affirmative).

Thom Dallman:                  It's paying yourself. It's building interest on your own future, when you purchase a house. It's still a good time to buy.

Dave Burnett:                    In this article, what did they talk about for 2017?

Thom Dallman:                  Well, the biggest things that we're facing right now are ... 1) on the list is obviously the political and global uncertainty that's happening out there in the world, with just the attacks that are happening, the politics that are happening internally within the US. There's a lot of hesitation because nobody knows what's going to happen next in the politic world, so ...

Dave Burnett:                    Well, you think about it. This isn't a political show, but-

Thom Dallman:                  Mm-hmm (affirmative).

Dave Burnett:                    ... you had the years of Barack Obama where people were uncertain what his healthcare policies, what his policies would bring.

Thom Dallman:                  Yep. Exactly.

Dave Burnett:                    Then we got ready for the elections. Everybody thought they knew what was going to happen, and surprise, Donald Trump wins.

Thom Dallman:                  Mm-hmm (affirmative). Yeah.

Dave Burnett:                    A lot of people back on their heels going, "Oh my goodness." Then they've had, I think, four or five special elections since the political, and the democrats have lost every one of them. People are going, "What's going on with the political?" Nobody seems to be satisfied with anything.

Thom Dallman:                  Exactly.

Dave Burnett:                    That does create an uncertainty.

Thom Dallman:                  That causes that uncertainty which then causes that hesitation in the marketplace. Yeah. I think that's one of the leading factors in what's happening with our low inventories that's happening nationwide, so ...

Dave Burnett:                    You sit down and watch the news, and every night it's a different country that's been attacked by terrorism.

Thom Dallman:                  Yeah. Exactly.

Dave Burnett:                    Yeah. Hope that didn't make [crosstalk 00:04:00]

Thom Dallman:                  Exactly.

Dave Burnett:                    You are a mighty positive person.

Thom Dallman:                  Exactly. One of the other things that they've report are talking about just the changes in technology and how quick, rapidly technology's changing.

Dave Burnett:                    Mm-hmm (affirmative).

Thom Dallman:                  There's uncertainty of which way to go when it comes to how to approach real estate and what apps out there. There's so many apps out there. There's so many Zillows, Trulias, Realtor.com’s. There's so many different places that you can go to find out information on real estate that people are getting a little bit overwhelmed, I think, a little bit, on what they should be using. Technology is great for them. While it's a great thing, to have this advance of technology, it can also be quite overwhelming for people, so ...

Dave Burnett:                    Which, as the broker for Core Group Realty, it's got to be a bit tough because you've got to stay on the cutting edge. You have to stay ahead of the wave or you'll be left behind.

Thom Dallman:                  Mm-hmm (affirmative). Exactly.

Dave Burnett:                    There are, and I'm sure you could probably list them by name, major real estate companies that didn't get on a wave, and now they're playing catch up.

Thom Dallman:                  Exactly. Yep. There's a lot of that out there and there's new ones that are coming on that are in there and digging in and doing all this new stuff. Just different ways for brokerages to run their business. There's different ways to make offers now on properties. It's an ever changing, evolving game, and it's changing very quickly and rapidly, so ...

Dave Burnett:                    Yeah. Well, and as we've talked with Michelle Guth before of Diversified Mortgage, you have loan companies online that make it seem like it's easy enough to just push a button and you're approved.

Thom Dallman:                  Exactly.

Dave Burnett:                    Okay. There's a little more to it than that, but that's the way they make it appear.

Thom Dallman:                  Exactly.

Dave Burnett:                    I guess I'll take this opportunity to say it's your chance to talk to Thom or any one of the agents here about Core, about what they use social media-wise.

Thom Dallman:                  Yeah.

Dave Burnett:                    What you use for marketing. What you use that is considered that new cutting edge.

Thom Dallman:                  Exactly.

Dave Burnett:                    It's a good time to sit down, talk about it.

Thom Dallman:                  Exactly. Even for the buyers out there. We're starting to see some companies that are offering, "Hey, if you want to submit an offer, we'll take care of everything for you," but those buyers are left with no representation from an actual buyer's agent that actually is looking out for their own good and helping to negotiate for the best of their interests.

Dave Burnett:                    Yeah.

Thom Dallman:                  It's important to remember that. If you're trying to circumvent and just go straight to listing agents or you go through the brokerage that has the listing, you could potentially be falling into not having the representation necessary, so ...

Dave Burnett:                    Mm-hmm (affirmative). I guess that goes back into what do you do? Do you try what's new and unproven which might work?

Thom Dallman:                  Mm-hmm (affirmative). Yep.

Dave Burnett:                    If it doesn't, you may be left with your hind end hanging out in the wind.

Thom Dallman:                  Exactly.

Dave Burnett:                    Going to the old tried and true way of having somebody to represent you is a good thing to have.

Thom Dallman:                  Exactly.

Dave Burnett:                    Yeah.

Thom Dallman:                  Some of the other problems. One of them that I think that we face here in the Treasure Valley a little bit is the infrastructure issues that we have, just as far as we've got so much growth happening and so much development happening that the state and city and whatnot are having a hard time keeping up with that growth as far as road construction and putting in the ways for people to get around town without so much congestion and stuff like that.

Dave Burnett:                    Yeah.

Thom Dallman:                  I think that that's happening in all these areas that are growing and so forth, that infrastructure. To support the amount of growth that we have going on is one of the many issues in 2017 that areas are facing.

Dave Burnett:                    Yeah. My wife and I took a drive last week, and we went out toward Hidden Valley, out that direction, Shakespeare Theater.

Thom Dallman:                  Mm-hmm (affirmative).

Dave Burnett:                    Oh my gosh.

Thom Dallman:                  Yeah.

Dave Burnett:                    All the construction going on out there for multiple apartment complexes to homes being built to-

Thom Dallman:                  There's ranches that, yeah. That whole area out there is ....

Dave Burnett:                    Yeah. [crosstalk 00:07:48] ranch. It was just like, "Oh my goodness. That area."

Thom Dallman:                  Exactly.

Dave Burnett:                    If somebody from the east side of town comes out west and looks at the Eagle or Star, they say the same thing.

Thom Dallman:                  Mm-hmm (affirmative). So much development going on.

Dave Burnett:                    Yeah.

Thom Dallman:                  We've talked about Kuna being a hotspot right now, where people are trying to move a little bit further out of town but still have that big, good community feel. Yep. There's a lot of it happening.

Dave Burnett:                    Yeah. Trying to find a way to stay close enough to the freeway that you have easy access but far enough away that you're not living on the freeway.

Thom Dallman:                  Exactly.

Dave Burnett:                    That does become a bit of a challenge.

Thom Dallman:                  Yeah.

Dave Burnett:                    Infrastructure.

Thom Dallman:                  One final thing that they talk about a little bit is climate change.

Dave Burnett:                    Mm-hmm (affirmative).

Thom Dallman:                  That's actually a factor that some areas are facing. This report specifically talked about a person who was looking to buy real estate in San Francisco and just talked about not wanting to buy too close to the ocean because of ocean rising and stuff, that concept that that could happen and so forth.

Dave Burnett:                    Uh-huh (affirmative).

Thom Dallman:                  That actually is a little bit of a concern. We hear on the TV people talking about climate change and stuff like that, and so there is a group of people out there that are concerned about it and do feel that that is something that could happen. I personally had someone talk to me this week about not wanting to buy along the river because of the issues that we've been facing this year with the river overflowing and stuff like that. Whether that's climate change or whether that's just a ...

Dave Burnett:                    Or commonsense.

Thom Dallman:                  Just an unusual fluke for our season this year.

Dave Burnett:                    Yep. See the riverbed? Sometimes water flows in there. That's how it got there.

Thom Dallman:                  Exactly. Yeah. Those are issues that, depending on the area that people think about, one of those issues that people actually are worried about.

Dave Burnett:                    Well, when it comes to lawmakers, there are some that may be ... laws that may be affected by that down the road, which could affect real estate, what happens there.

Thom Dallman:                  Mm-hmm (affirmative). Exactly.

Dave Burnett:                    Whether you believe there's climate change or whether you believe it's man-caused or not man-caused, it could affect you and it's something to pay attention to, just that our laws might be affected [crosstalk 00:09:56]

Thom Dallman:                  Exactly.

Dave Burnett:                    Yeah. [crosstalk 00:09:59]

Thom Dallman:                  A lot of different things out there that we're facing in 2017, so ...

Dave Burnett:                    We've talked with Michelle Guth about it, about rising interest rates.

Thom Dallman:                  Mm-hmm (affirmative). Rising interest rates. Yeah. That's part of that whole ... the globalization issues and stuff like that that we face. Those trickle down, too.

Dave Burnett:                    Yeah.

Thom Dallman:                  Rates increasing and stuff like that, for sure.

Dave Burnett:                    Well, when you think about it, it's like that frog boiling in the water.

Thom Dallman:                  Mm-hmm (affirmative). Exactly.

Dave Burnett:                    "Oh, it's an extra $20 a month. That's not that much." Well, when you compound that three, four times, suddenly you're getting into the hundreds.

Thom Dallman:                  Exactly. Mm-hmm (affirmative).

Dave Burnett:                    Then, that does affect things.

Thom Dallman:                  Yeah. Exactly.

Dave Burnett:                    Something to keep an eye on. All right. We're going to continue our talk about real estate, becoming real estate agents this afternoon. If it's something you've thought about, we're going to talk about some of the pros and cons coming up as the Idaho Real Estate Buzz continues here on 580 KIDO and FM 107.5.

 

 

Seg 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 for you to go to to find out all things real estate when it comes to Core Group and what is happening. You know, Thom, in previous shows, we've talked about getting into real estate, what you have to do for getting your license and then finding an agency and getting with a broker.

Thom Dallman:                  Yep. Make sure you're interviewing that brokerage to make sure that it's a good fit for you as well as your fit for them.

Dave Burnett:                    I guess one of the questions is, and I say this ... I have family members who are in real estate ... that we're a little surprised by some of the stuff that happens that comes along with the job.

Thom Dallman:                  Oh, yes. There are a lot of surprises.

Dave Burnett:                    Let me preface this by saying like any job, there's plus sides, there's down sides.

Thom Dallman:                  Exactly.

Dave Burnett:                    The career being a real estate agent is a great career, an opportunity to make a lot of money ...

Thom Dallman:                  Exactly.

Dave Burnett:                    ... or an opportunity to work more leisurely, not make quite as much money. That again comes with finding the agency that's right for you.

Thom Dallman:                  Exactly.

Dave Burnett:                    There are some surprises that might come along with becoming a real estate agent.

Thom Dallman:                  Yeah. There's certain things that people don't necessarily think about when they're jumping into the career, and so they are not quite prepared for it. I can't remember what the percentage is, but it's a fair amount of people who get licensed usually get back out of the business and give up their license after the first-year due to the fact that they weren't quite expecting certain things.

Dave Burnett:                    All right. Let's talk about those.

Thom Dallman:                  Such as the first and foremost is a concept called lead generation. Where are your leads going to come from? Where is your business going to come from? Is it going to be your sphere of influence, the people that you know, your friends and family out there? Do you have a big enough sphere of influence to be able to generate that kind of business that will keep you going? Then from there, how else are you going to market yourself? That getting out there and meeting people and talking real estate. What's your game plan for actually getting that, whether it's ... I had one agent who her whole philosophy was built on just opening a phone book and calling out of the page, just talking to people like that.

Dave Burnett:                    Cold calling.

Thom Dallman:                  Cold calling. Yes.

Dave Burnett:                    Let's talk about that term sphere of influence.

Thom Dallman:                  Sure.

Dave Burnett:                    We're talking about family members ...

Thom Dallman:                  Correct.

Dave Burnett:                    ... who will help spread the word for you.

Thom Dallman:                  Correct.

Dave Burnett:                    There's some family members that aren't going to do it.

Thom Dallman:                  Exactly.

Dave Burnett:                    You can post on your Facebook site, "Look at this lovely home I have listed," and they're not going to share it.

Thom Dallman:                  Exactly, exactly.

Dave Burnett:                    They are not in your sphere of influence. I hate to say it, but there's some family members that just don't want to do that.

Thom Dallman:                  Yeah.

Dave Burnett:                    But you've got to kind of take that into account and think about that as you're going into this.

Thom Dallman:                  For sure.

Dave Burnett:                    How many family members? How many friends? How many former coworkers do I have that will help share and help spread the word?

Thom Dallman:                  Yeah, exactly. Well, and not only how many do you have, but how are you going to stay in touch with them to make sure that they know that that's your business? One of the frequent things that I hear is that whole agent is upset because a cousin or some relative bought a house with another agent because they had forgotten that that relative was an agent, because they just hadn't been communicating.

Dave Burnett:                    It's easy to do.

Thom Dallman:                  Yeah. Whether it is a social media post once a week, whether it is just reaching out to your family members once a month to say, "Hey. Just a reminder that I'm in business, real estate. Do you have any questions or know anybody that has any questions that I can help with?" and stuff like that. Those kind of things are important to be staying in front of your sphere of influence and family and friends and so forth.

Dave Burnett:                    Yeah. It may be ... Maybe you tailgate at BSU football games with a lot of people. Those are people that are in your sphere of influence, but you've got to shake hands. You've got to talk to them. You've got to give them the business card. You've got to let them know what you're doing and ask if you can keep them in the loop.

Thom Dallman:                  Exactly. Exactly. Right now with so much social media and internet stuff happening, it's so crucial to have a social media presence, whether you want to just do stick to Facebook, whether you want to tweet, whether you want to do Instagram. It's so key right now in building a successful real estate business is having that social media presence.

Dave Burnett:                    I was looking at the numbers of people under the age of 60 that use various forms of social media, and it's pretty much everyone. Everyone under 60 uses ... Whether it's just Facebook, but everyone uses something, whether it's tweeting or whatever it might be.

Thom Dallman:                  Exactly.

Dave Burnett:                    It is huge to do that.

Thom Dallman:                  Oh, it's a huge factor in real estate. Well, a lot of businesses, actually. That word of mouth, that recommendations, everything seems to be online anymore.

Dave Burnett:                    Would you say, Thom, that when it comes to real estate ... But that word of mouth, whether it's online, because that's word of mouth, that really is where your leads are generated? Is somebody who refers you because ... How many people just stumble into the office and go, "I want to buy a house. Have you got an agent?" It doesn't happen that way anymore.

Thom Dallman:                  Yeah. No, it's not happening as much on that end of things. A third of your business will be built on referrals. As long as you're doing a good business and staying in contact with people, they should be referring business to you. I would say that that's probably one area that a majority of agent’s lack is that follow up with their past clients and actually reaching out to them. Reminding them that they're in business, staying in contact with them, asking for those referrals should be a third of your business, but tends to not be for a lot of agents.

Dave Burnett:                    Believe it or not, I still get a Christmas card from the real estate agent that sold me my house back in 1988.

Thom Dallman:                  Wow. That's great.

Dave Burnett:                    I still get a Christmas card from her every year ...

Thom Dallman:                  Yeah. That's awesome.

Dave Burnett:                    ... just to let me know she's still around.

Thom Dallman:                  Still in the business and yeah, still keeping herself in the front of your mind.

Dave Burnett:                    Is there a timeframe? If I get into the business and I start and I'm in real estate and I'm at my desk ... I've got my pencils all lined up. I'm waiting for the phone to ring. Is there ... Is it a year? Is it a year of doing business before I start seeing a return, or is there really a timeframe when I start seeing a return on my investment?

Thom Dallman:                  That's really kind of ... It depends on what you're investing into it. That's part of what people don't anticipate is that it takes money to make money. You do have to have some kind of skin in the game to get this going and to start generating money. It's not necessarily ... It's hard to say. It really depends on what you put into it and what your drive is and how much you want to work. If you work 24/7 at this, you can get going in as little as three months, get money coming in and stuff. It really depends per person on what your attitude is. On average ... And where you go. There's brokerages out there where you can just go hang your license and do your own thing, and then there's brokerages out their kind of like ours which specialize in internet presence and lead generation, where we hand some of our business to the agents and stuff like that. Depending on where you hang your license, depending on how much you want to put into it ...

Dave Burnett:                    Whether they have that team concept or not.

Thom Dallman:                  Yeah, exactly. That really-

Dave Burnett:                    [crosstalk 00:07:33] you're part of a team.

Thom Dallman:                  Exactly. There's so many different ways and so many different brokerages out there that you can run your business and help support your business or just be there to help guide you through the looking for your own business and stuff like that.

                                                On average, I think the average is about 90 to 180 days for agents to get their first closings and to get their first business going. Once again, depending on the brokerage and how eager they are.

Dave Burnett:                    And the climate. And the climate.

Thom Dallman:                  Exactly.

Dave Burnett:                    What are some of the other surprises that people get?

Thom Dallman:                  Oh, sure. People tend to think that once you write a contract, that's for sure money coming in. They don't think about the fact that roughly about a quarter of most contracts that are written either don't get accepted or fall apart at inspection or maybe the appraisal comes in and it falls apart after the appraisal process. There is that concept that not every contract is going to bring money in.

Dave Burnett:                    So, don't spend your money or count your eggs before they hatch.

Thom Dallman:                  Exactly.

Dave Burnett:                    It's got to go through. Again, I have a family member that's in real estate, and that first deal that fell apart, oh, man.

Thom Dallman:                  Right.

Dave Burnett:                    She thought, "Okay. Money in the bank. I'm figuring, okay, I've got this percentage coming in. Okay. Oh," and the financing fell apart. It was like, "Oops. Back to square one."

Thom Dallman:                  Not to mention the fact that I hear time and time again that an agent has spent time with a client out there showing property, getting them into homes, spend two, three weeks, maybe even a month and a half, showing properties just to have them walk into an open house and sign a contract with a listing agent to buy a house. There's a lot of time that you put into some buyers just to have the buyers disappear on you and stuff. Not every buyer that you have is a guaranteed paycheck.

Dave Burnett:                    I guess that's where you have to learn to be like water off a duck's back. You can't resent and hold that in, or it will get you.

Thom Dallman:                  Oh, yeah.

Dave Burnett:                    You just have to let it go. Part of the deal.

Thom Dallman:                  It's part of the deal. I tell agents that all the time, because they come to me frustrated with this person. "I've been working with them so long, and then they did this." It's like, "That's just part of the game, unfortunately." You try your darnedest to get them to commit to you, but at the end of the day, consumers are in that boat where they just want what they want right when they want it. If they see something they want, they're going to figure out the quickest way to get to it.

Dave Burnett:                    There's not really a loyal ... You may be the one sitting in the open house that somebody stumbles in and signs a deal with. You might be the next-

Thom Dallman:                  Exactly. Exactly. It might be the reverse for someone out there, for an agent out there. That's actually another thing that people don't ... It's a weird concept, but there are other agents out in the industry who are not necessarily nice to play with, if you will.

Dave Burnett:                    A little bit of sharks in the world.

Thom Dallman:                  Exactly. Exactly. There are agents out there that will intimidate and try to push their way on buyers' agents when they're negotiating and stuff like that. You have to be thick-skinned a little bit when it comes to negotiating with other agents sometimes. Not everybody plays nice, unfortunately.

Dave Burnett:                    I would imagine that that is one of those cases where if you have somebody who is seasoned and has been in the business a long time, if they have that kind of personality and you're new in it, they're going to try to take advantage of you.

Thom Dallman:                  Oh, yeah. They do. They will and they do. It's imperative that you remember that you're representing your buyers and to have that backbone and to be able to stand up to those intimidating seasoned agents that will try and push you.

Dave Burnett:                    The good news with Core Group, because it is a team concept here, if somebody is new, they're not going to be alone in that meeting.

Thom Dallman:                  Exactly.

Dave Burnett:                    There will be somebody seasoned and just as tough with them.

Thom Dallman:                  For sure. That's the nice thing about at least here. Since I'm not a competing broker, I don't sell, I'm here to support my team. If they run into those issues, they can come to me, and they talk to me about those, and I help them build that confidence in being able to negotiate back with agents ...

Dave Burnett:                    And guide them.

Thom Dallman:                  ... and guide them through that process. Yeah. One of the biggest things that people don't think about is the fact that when you do get commissions, we don't take taxes out.

Dave Burnett:                    You're an independent agent.

Thom Dallman:                  You're an independent agent. I actually had an agent join us that when he ... He admitted self-heartedly. He was like, "I got into it. When I went to sign up for real estate class, I was under the impression that a broker pays me an hourly wage to sell property for him." He had no idea that it was 100% commission-based and that he would have no taxes taken out of his checks, that he would have to save that money for the end of the year when tax time rolls around.

Dave Burnett:                    Yeah. Oops.

Thom Dallman:                  There's a lot of agents that don't prepare for that. They just ... For whatever purpose, especially when they're new getting into it and the money starts coming in, they go and they buy ... They're like, "Oh, yay. Finally. I can catch up my bills. I can go buy the things that I've been putting off buying and stuff." All of a sudden, the end of the year rolls around and they get their tax bill, and they're shocked. They're scrambling to figure out how to pay those taxes.

Dave Burnett:                    Gotta go sell a house. You've got to go sell a house.

Thom Dallman:                  Yeah. Uncle Sam wants his money. My first couple of years in real estate, that's what I did. I will self-admit that I was not very good at saving money through the year, so I knew that come January 1st, I had to really push to get some sales in so that I could have the money in the bank for ...

Thom Dallman:                  ... paying my taxes for last year.

Dave Burnett:                    Again, that is an icing. You're 100% commission, so you're not limited by the hours you put in. What you put into it is what you're going to get out of it, and that can be very lucrative for some people.

Thom Dallman:                  Correct. Correct. I've always said that that's one of the driving forces was for me. Whenever I wanted to get a new car, or whether I wanted to go buy something, I knew, then, I had to start really digging in and digging into my database, digging into whatever lead gen I can do to get another house sold so I can add that to my pocketbook.

Dave Burnett:                    Thom, as we close out the show today, if somebody is interested in getting into real estate, would like to just sit down and talk with you about it, maybe it's something they've thought about, can they come in and just chat with you?

Thom Dallman:                  Oh, yeah. Swing by our office here at 8665 West Emerald Street, and just pop in and just ask for me. If I'm here and available, for sure, I'd like to meet with you. If I'm not, our lovely director of first impressions, Haley, would get you on my calendar to get something. You can also call our front office number at 639-7700 to get on my schedule as well, and just ask Haley to ... Yeah ... put you on my schedule to meet and chat about it.

Dave Burnett:                    Very good. Core Group Realty. That is the group that brings you the Idaho Real Estate Buzz each and every Saturday. Thom, I appreciate you so much for what you put in and just trying to help giving people knowledge, a little bit of extra power to go out forward and make the biggest financial decision of their life.

Thom Dallman:                  Yeah. Well, thank you, and I appreciate you coalescing this with me.

Dave Burnett:                    933-7777 is the number or you can go to coregrouprealty.com. We're here every Saturday at 2:00 on 580 KIDO FM 107.5.

 

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

Core Group Realty
208-639-7700
CoreGroupRealty.com

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