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This week on the Idaho Real Estate Buzz: In segment one Dave and Thom talk about what to expect when you interview and agent in preparation of listing your home. Thom and Dave interview Michelle Cabbage of Pioneer Title in segment two. Dave and Thom talk among themselves about the Treasure Valley selling more new construction homes than pre-existing homes in the month of December. In the final segment, Thom and Dave chat with Naomi, a 23 year old investor who purchased a duplex and how it has been working out for her. 

 

-          Segment #1

Dave Burnett:                    This is the Idaho Real Estate Buzz, I'm Dave Burnett. He is Thom Dallman, the co-owner, designated broker of Core Group Realty. Coregrouprealty.com, that is the website you can go to any time day or night to check out what's happening in real estate in the valley, and of course you can always call 208-933-7777. Thom, here we go, we're well into the month of January.

Thom Dallman:                  Well into it.

Dave Burnett:                    Yeah, and the clock is ticking down toward spring.

Thom Dallman:                  Yeah, it sure it. It's amazing how quickly spring kind of springs up on you, if you will.

Dave Burnett:                    Yeah, well we've had so much nice weather in January, it's been [crosstalk 00:00:38].

Thom Dallman:                  Yeah.

Dave Burnett:                    But of course, February typically we get more snow than ever.

Thom Dallman:                  Who knows what's going to happen this February, right?

Dave Burnett:                    Yeah. Now is the time to perhaps start making plans, because if you're thinking about selling your house in the spring-

Thom Dallman:                  That's a great time to sell.

Dave Burnett:                    It's never too early to start planning.

Thom Dallman:                  Oh, yeah. No, no, we're just a couple months away from spring and it does, it can take a little bit of time to get your home ready, if you will. Now is a perfect time to actually start with a consultation. Have your agents come to the house and actually start with a consultation. Start with what would you need to do to get your house ready to get it listed-

Dave Burnett:                    Let me ask you this.

Thom Dallman:                  For the best look.

Dave Burnett:                    In a consultation, what happens in that? I mean, consultation, that's a pretty broad-

Thom Dallman:                  It sure is.

Dave Burnett:                    Range. What happens-

Thom Dallman:                  It sure is.

Dave Burnett:                    When I sit down with one of your agents from Core Group?

Thom Dallman:                  Yeah.

Dave Burnett:                    What happens in that meeting?

Thom Dallman:                  When we meet with people, we really like to get to obviously know them. We're about building relationships, not just selling homes. We talk about that all the time. It's also coming to the house to really get a good feel for it, because we want to be able to compare it to other homes in the marketplace. We're going to take a thorough look at the condition of your floors, the condition of the paint, the walls. What colors have you painted in there. How much clutter you have, if any, and stuff like that. The consultation will just be basically an hour, possibly an hour and a half of just walking around showing us rooms, telling us how you live in the house, and how the house has treated you, and identifying any problem areas that there might be for getting listed, and selling it, and stuff like that.

Dave Burnett:                    We've talked about this in the past as far as it's also a good chance for the customer to interview the agent, and to find out-

Thom Dallman:                  Yeah.

Dave Burnett:                    If Core Group meets what they need.

Thom Dallman:                  Exactly, yeah. I'm a big proponent for interviewing agents and making sure that you have that right fit. This is your trusted advisor that's going to help you with selling one of your most biggest investments, so you want to make sure it's someone that you trust, someone that you feel comfortable with, and that you know is going to do the right thing for you. You really want to make sure that you have an agent that has a good presence in the marketplace. Each brokerage has their own individual unique opportunities to be able to market your house, as well as the standard MLS ... Putting it on the MLS. For instance, we have the ability to talk about it on this radio show, which we usually do. Each week we try to bring our newest listings up and talk about it. It's really important to ask your agent, "What are you going to do to market my property that's unique, that's different than every other agent out there?"

Dave Burnett:                    Yeah.

Thom Dallman:                  Is one of those questions that you should be asking.

Dave Burnett:                    In other words, how am I going to be heard above the noise?

Thom Dallman:                  Exactly.

Dave Burnett:                    You think about today's consumers, from the time you get up in the morning, whether you're hearing ads on the radio, ads on TV, ads on Facebook, ads on your Twitter, billboard signs as you ... We are bombarded-

Thom Dallman:                  Bombarded every day.

Dave Burnett:                    Every day. How do I get my message above that noise? That's really where that Core agent will help to show you, "Here is how we're going to get that done."

Thom Dallman:                  Here's our unique opportunities that we have. We can share it on the radio. We can blast it out to our database. We can ... We have-

Dave Burnett:                    [crosstalk 00:04:08] jump in the fire with that one.

Thom Dallman:                  Yeah, exactly.

Dave Burnett:                    Because not everybody has ... Not all real estate companies have that ability. They just haven't ... They're behind the curve.

Thom Dallman:                  Exactly, exactly. Yeah. Definitely make sure that you're interviewing agents. Have a couple different agents come by so that you can find that right fit. Hopefully, it's one of our agents that'll be the right fit for you, but if not, just make sure that you trust that person and can get the best representative out there.

Dave Burnett:                    One of the things you mentioned is something that ... Here recently, in the past six months, I got my home refinanced.

Thom Dallman:                  Sure.

Dave Burnett:                    One of the things they kind of had to work to do is to get a comparable. The reason is, they're so few homes out there for sale or have sold recently, they had to kind of stretch around a little bit.

Thom Dallman:                  Exactly, yeah. We've kind of gotten this unique situation in 2017 and going into 2018, where we just have such a low inventory. We still have a high volume of sales and stuff like that, but such low inventory that it's making it hard in certain areas because now you're having to compare to new construction. New construction's prevalent right now. Yeah. It's really, it's a unique market and it can be a challenge in some areas to find comparable houses that have sold in the ... Because you want to make sure that it sold in the last three months. I actually went to comp a house recently where I had to go outside the area, because it was in the north-end and there hadn't been any similar sales in the north-end in the last three months.

Dave Burnett:                    Wow.

Thom Dallman:                  I had to go back six months and try to find some.

Dave Burnett:                    Yeah. Well, that is incredible. I guess that also relates to ... I know we've talked about this in the past, how you need an agent that's on top of the game.

Thom Dallman:                  Exactly.

Dave Burnett:                    You need an agent who's willing to go out there and work to dig, because this is not a time ... You would think with sales as easy as it is, you would think it's time for a lazy salesperson to do well.

Thom Dallman:                  Right.

Dave Burnett:                    But it's really not.

Thom Dallman:                  Yeah.

Dave Burnett:                    It's time for somebody who's hustling to get out there and work.

Thom Dallman:                  It can cost you money if you don't have the right agent.

Dave Burnett:                    Yeah.

Thom Dallman:                  You don't want to list your house too low and lose out on some opportunity there.

Dave Burnett:                    Yeah.

Thom Dallman:                  It's definitely important to make sure you have someone who's-

Dave Burnett:                    You've been doing this quite a while, have you ever seen a marketplace quite like this right now?

Thom Dallman:                  No, no. Honestly, this ... The inventory situation has reportedly not happened since, I think they said, the 80s or something like that is the-

Dave Burnett:                    Wow.

Thom Dallman:                  Last time inventory's been this low. It's just a unique marketplace right now. The homes are still quite affordable. We still rank highest in affordability of living and stuff and have such an influx of people moving into town. New construction is, like I said, prevalent above everything else.

Dave Burnett:                    Even that's taking time to get accomplished-

Thom Dallman:                  Oh yeah.

Dave Burnett:                    Because of lack of people doing the work.

Thom Dallman:                  Lack of tradesmen and building supplies are going up.

Dave Burnett:                    Yeah.

Thom Dallman:                  The builders are having to now raise their prices due to that stuff.

Dave Burnett:                    Or postpone the work.

Thom Dallman:                  Yeah, or postpone the work. Yeah. What used to take three to four months to build is now taking four to six months to build and stuff. It's definitely effected a lot of stuff in our economy right now.

Dave Burnett:                    That's a good thing and that's a bad thing.

Thom Dallman:                  Exactly.

Dave Burnett:                    I guess it's just not a balanced thing.

Thom Dallman:                  Yeah.

Dave Burnett:                    Back to what our original topic was-

Thom Dallman:                  Yeah.

Dave Burnett:                    That this is a great time to start getting ready for the spring months and spring things do begin to pickup, because people, they got their kids, they're ready to get them-

Thom Dallman:                  [crosstalk 00:07:55] School gets out. People are ready to kind of move and stuff in the springtime. Yeah. Spring just usually loosens ... It loosens up a little bit more.

Dave Burnett:                    Yeah.

Thom Dallman:                  Yeah. It's never a bad time to sell. That's what I always tell people. We have people moving into town all the time all through the year. Businesses are growing, and stuff like that. It's never a bad time to sell, but definitely come spring it'll be even better.

Dave Burnett:                    Yeah. If you're getting ready to sell, I guess, as I was thinking about getting your house ready to sell, you can sell your house sloppy.

Thom Dallman:                  You can.

Dave Burnett:                    But you're going to lose money.

Thom Dallman:                  Yep, yep. Everything's a little bit of a cost.

Dave Burnett:                    You'll get a better offer if it's that showplace.

Thom Dallman:                  It really-

Dave Burnett:                    That's where that professional will help.

Thom Dallman:                  Yeah. A good real estate agent will come in and help you identify those things that if you have a small budget, that you can do that will increase the price of your house without breaking the bank.

Dave Burnett:                    [crosstalk 00:08:51] Photographs, can you get that done now?

Thom Dallman:                  Yeah, yeah. Photographs ... We have a unique system that we can actually no matter what the picture looks like, if it's dark and gray out, if the grass is brown, we can actually make those look better.

Dave Burnett:                    You can green the grass.

Thom Dallman:                  We can green the grass. We can lighten the sky. We can put a blue sky in and stuff like that. We have the ability to make really professional photos out of just the current situation of the-

Dave Burnett:                    Yeah.

Thom Dallman:                  When you woke up this week and saw fog out and everything, it was ...

Dave Burnett:                    Yeah. It was like, "Wow, what are you going to do with that?"

Thom Dallman:                  Exactly, and cloudy skies, and whatnot. Then the weird snowfall that we had for all of five minutes during the week.

Dave Burnett:                    Yeah.

Thom Dallman:                  That kind of stuff.

Dave Burnett:                    Just something to plan for and think about. If you have thought about selling your house, you might want to get a consultation. There's no obligation. There's no high pressure, but that way you can find out if I were to put my house up for sale, how long could I expect? Of course, there's no promises, but-

Thom Dallman:                  No.

Dave Burnett:                    How long could I expect? What would be the value? I think that above everything else, and I've shared this story before about my father-in-law, decided himself how much he was going to sell his house for, sold it, and a guy bought it within about two hours, didn't even want to look at the property.

Thom Dallman:                  Oh yeah.

Dave Burnett:                    Whoops.

Thom Dallman:                  Exactly.

Dave Burnett:                    Kind of lost [crosstalk 00:10:13] out about a lot of money.

Thom Dallman:                  Lost a little bit of money there, yeah.

Dave Burnett:                    You want somebody who is well aware of what's going on in the situation, even if it's just to confirm your thoughts. That is something that the Core agents can help you out with, so give them a call today. You can email them and that website is Coregrouprealty.com. You'll find the link there and be able to send off an email, or call 208-933-7777. They're willing to meet with you Sunday to Sunday-

Thom Dallman:                  Oh yeah. Yeah.

Dave Burnett:                    To chat with you. If you have a limited schedule when you can meet, somebody will be able to come and talk with you.

Thom Dallman:                  Yeah. We usually have someone standing by ready to go.

Dave Burnett:                    Get that done and start thinking about it, do you want to sell this spring? Now's the time to think about it.

Thom Dallman:                  Now's the time to start getting it ready.

Dave Burnett:                    We will continue on the other side. This is the Idaho Real Estate Buzz, being brought to you by Core Group Realty. Coregrouprealty.com is the website. Find out why they say, "You get more with Core."

 

 

-          Segment #2

Dave Burnett:                    This is the Idaho Real Estate Buzz, I am Dave Burnett. He is Thom Dallman the co-owner, designated broker at Core Group Realty. Coregrouprealty.com is the website. You can call 208-933-7777. Ask any question or if there's something on the show you want to know more about, you can ask or check it out at coregrouprealty.com.

                                                You know, there's so many pieces, Thom, that goes into buying and selling a home. Not just a real estate company, not just to ... and one of those things that you always hear about is title, that title company.

Thom Dallman:                  That title company.

Dave Burnett:                    Yep.

Thom Dallman:                  Yes, that's an important part of the process and one of the items that a lot of people don't know about, so we've brought Michele Cabbage in from Pioneer Title to talk to us a little bit about title, what happens during the title process.

Michele Cabbage:            Hey, Tom. Thank you. Good to be here.

Thom Dallman:                  Welcome back, you've been a guest on the show quite some time ago, I do remember, and you were so kind to bring me a pen.

Michele Cabbage:            Yes, that's right. That's right.

Thom Dallman:                  It seems like the title company ... I know it's the one part where you sit down and it's like another page to sign. My wife is signing another page and yet another page.

Michele Cabbage:            Right.

Thom Dallman:                  There is a lot of paperwork that's involved.

Michele Cabbage:            There is a lot of paperwork. I think that's what we're known for. Oh Lord, we have to sign all of these papers. So yeah, we do have lots of pens. They tend to run out of ink quite a bit. But there's really a lot more that goes into that. I mean, basically, all those papers that you're signing, we're just facilitating the loan documents being signed at closing. So we're a neutral third party, so we are that middle person who brings everything together. We want to make sure that the lender is getting all of their needs met. We want to make sure that the purchase contract has been followed.

                                                Then again, being a neutral third party, we are there to protect everybody's interest. We're making sure the lender's interests are protected, we're making sure again that the contract's being followed, buyers and sellers are being protected. Being an escrow officer, that's my role. I'm looking out for everybody, I'm making sure everything's going smoothly. It's always our goal to make sure that you leave a closing with a smile on your face. You're not overwhelmed by all those papers that you have to sign.

Thom Dallman:                  Right. I've been doing this for 14 years now, and I've had a really long relationship with Michele Cabbage. She is the one person that I've always gone to and recommend that my buyers use just because of the fact that she is so knowledgeable. She's been in the industry for so long. But she's also so comfortable to sit down and understand the paperwork with. She does it in such a way that clients feel so comfortable, hearing what the paperwork is and what they're signing. It's such a smooth process with Michelle. I like to say it, not all title officers are created equal.

Michele Cabbage:            Right.

Thom Dallman:                  Just like all real estate agents are not.

Michele Cabbage:            I've heard that. I've heard that before.

Thom Dallman:                  That's just a hype for Michelle.

Michele Cabbage:            Thank you.

Thom Dallman:                  I just wanted to share that bit, but also, the thorough research into the background of the sale of the house to the sellers and stuff like that, that's also what happens during the escrow process as well, right?

Michele Cabbage:            Yep. So we have two basically separate entities. We have our title department. We have our escrow department. Again, I'm an escrow officer. I take care of the transaction, manage it until the end.

                                                As far as title insurance, which is the most important part I believe of any purchase, I feel like if anyone tries to purchase a home without title insurance, it's like buying a car and not knowing that liens are being paid off. The car comes with all of this debt. It's the same idea with a home. We do a thorough search on each property.

                                                There's normally two types of insurance issued with every transaction. You have what's called an owner's policy. This policy is purchased for the buyer to ensure that this buyer's receiving this property free and clear. There's no loans, there's no tax liens, there's no judgments, that it can be transferred as far as who currently owns the property. We want to make sure that that's clear.

                                                There's also another policy called the lender's policy, which is issued through a transaction insuring the new lender. So if you are getting a loan, this lender wants to make sure as well that they have foreclosure rights, which means that they are the first lien on your property. There's nothing priority to them, so that if you get behind or you go into default, they have the first right to foreclose on the property.

                                                So insurance is very important to all parties, I believe. It covers you up to the date of closing. Again, if the seller had tax liens, or judgements, or two deeds of trust on the property, two loans, that's our job. That's my job to clear it and make sure that I'm transferring it free and clear.

Dave Burnett:                    Let's just say "if." If something slipped by and nobody caught it, and it then came up, that's what that insurance is there to cover?

Michele Cabbage:            That's what the title insurance is for. Yep, and at that time, that's when you make a claim. It goes through our underwriting department. Then we take care of it from there. We have to look at ... just a lot of times, there are some things that may not be covered by the policy. That's why when we first open a transaction, we do what's called a commitment. That commitment is saying, basically, we commit to issue policy, but we need to make sure all these items are cleared first. There's a lot of steps I have to go through each and every time to make sure that I can give this to you so that you don't have to make any claims later on.

                                                There's a lot of responsibility, a lot of liability on our part. But again, that's what your insurance is for is to make sure you're covered.

Dave Burnett:                    Are you finding with some older homes ... this just came to mind. I was thinking of a story I saw recently where there were some things that really don't apply but still may be hanging on the house. I'm talking in particular about irrigation districts and old claims by irrigation districts, because some people are buying an older home. That's gone away, but maybe those fees hadn't been paid, and suddenly, there's a lien that somebody doesn't know about, that kind of thing.

Michele Cabbage:            Yeah, that comes up on virtually every transaction if the irrigation has filed an assessment. We deal with public record. That's all I can see. It's like I am blind as an officer without my commitment showing me what's a public record. I have no idea. A lot of times, your irrigation companies have filed an assessment on that property. We call them. We also have to make sure that those assessments are all clear, HOA dues have been paid. In the case of irrigation, sometimes you are paying for irrigation for water that you may not even receive, but it's our job just to make sure that all irrigation is paid up, there's nothing outstanding, and that we can transfer that as well.

Dave Burnett:                    So there's not really too many secrets for you at the company.

Michele Cabbage:            There's really not.

Dave Burnett:                    It's just making sure that your people ... that you guys do your due diligence.

Michele Cabbage:            Exactly.

Thom Dallman:                  [crosstalk 00:07:23] all there.

Michele Cabbage:            If I haven't done my job, then I can't transfer it, and that's what it's all about.

Dave Burnett:                    Really, the title company really is the-

Thom Dallman:                  They're the third spoke in the wheel that makes it all go around. You have the lender, the real estate office, and then the title company.

Dave Burnett:                    That way, you don't have any nasty surprises afterward [crosstalk 00:07:45].

Michele Cabbage:            Exactly.

Thom Dallman:                  Exactly.

Michele Cabbage:            That's our goal is, for sure, and trying to make it fun if we can.

Thom Dallman:                  Yeah, exactly.

Dave Burnett:                    About how much time the average transaction, once it's given to you-

Michele Cabbage:            Once I get the initial contract and everything-

Dave Burnett:                    About how long does it take to do?

Michele Cabbage:            I've had cash transactions where I've gotten the contract one day, and I closed in two days.

Dave Burnett:                    Wow.

Michele Cabbage:            It just depends. Our goal is to follow the contract date. I have to make sure I can get everything I need done within that timeframe.

Dave Burnett:                    Advice for somebody that maybe is a first time buyer, who has never purchased a home before, and they're suddenly told, "We're going to set a date with the title company. When do you want to do this?" What advice do you have for that first-time home buyer?

Michele Cabbage:            I just closed one, actually. He was amazing. First-time home buyers are always my favorite. They're so excited. My goal as a closer is to make sure they are not overwhelmed, because it can be a very scary process. It's one of the biggest purchases they'll make in their lifetime. That's so important to me to make sure that they understand but yet they aren't overwhelmed. There's a lot of information that we give to them in a closing. I love closing with first-time home buyers. Like I said, it's such an exciting process for them.

Dave Burnett:                    The one thing that always amazes me, though, and it was actually Michelle that broke the news to me, when you buy your home, would get it paid off-

Michele Cabbage:            There's no title.

Thom Dallman:                  [crosstalk 00:09:18].

Michele Cabbage:            I remember us talking about that.

Thom Dallman:                  There is no paperwork.

Dave Burnett:                    There's no title. It's a title company. They should give you a title.

Michele Cabbage:            I know. I know. There isn't. A lot of people think, "I've got this title to my car," but in real property, it's not the case.

Dave Burnett:                    [crosstalk 00:09:34].

Michele Cabbage:            You own it via a transfer of a deed that's recorded in public record.

Dave Burnett:                    The good news is you don't have to make any more payments to the bank.

Michele Cabbage:            That's right.

Thom Dallman:                  [crosstalk 00:09:42] all you get.

Dave Burnett:                    [crosstalk 00:09:43].

Michele Cabbage:            That's when it's yours. You own it.

Dave Burnett:                    Michelle, thank you so much. Michelle Cabbage.

Michele Cabbage:            Of course, thank you.

Dave Burnett:                    If somebody wants to get a hold of you, how do they do it?

Michele Cabbage:            Pioneer Title Company at 208-938-8075 is our office line.

Dave Burnett:                    All right, and if you can't remember that-

Thom Dallman:                  Give us a call.

Dave Burnett:                    You can always go to Core Group, and they will get you in touch and let you know how to get a hold of Michelle.

                                                This is the Idaho Real Estate Buzz. We'll continue on the other side. It's being brought to you by Core Group Realty, coregrouprealty.com. Find out why they say, "You get more with Core."

 

 

 

 

 

-          Segment #3

Dave Burnett:    This is the Idaho Real Estate Buzz. I'm Dave Burnett, he his Thom Dallman, the co-owner, designated broker at CORE Group Realty. Coregrouprealty.com and yes, that's core with a C, Coregrouprealty.com. Give them a call, 208-933-7777. Thom I heard a news story earlier in the week and it caught my ear and I mean literally turned my head around and went, "What?"

Thom Dallman:  What was that?

Dave Burnett:    I heard that new home sales outpaced existing home sales.

Thom Dallman:  Oh my gosh, yeah. We've had a ... 2017 was a super unique year in several facts. We've talked about the low inventory and everything, but that has led to a phenomenon where we, for the first time in our recorded records that we have for sales and stuff, have had five months actually out of this last year where new construction sales exceeded existing home sales.

Dave Burnett:    Wow.

Thom Dallman:  So existing home sales mean like homes that people lived in and decided to re-sell.

Dave Burnett:    Whether they're 150 years old or a year old.

Thom Dallman:  Exactly.

Dave Burnett:    Outpaced those.

Thom Dallman:  Outpaced, yeah. So if you imagine just brand new homes, more of those sold than existing homes. December alone was the highest that we've seen. We had 854 new construction sales and only 537 existing home sales in December. So 317, and that's in Ada County, that's just in Ada County. Yeah, it's just unique. New Construction is so prevalent right now. It's crazy.

Dave Burnett:    Let me put you on the spot with this question. What is the reason for it? Is it because there's that many people coming that want new homes? Or because there's just not that many homes out there existing?

Thom Dallman:  I think it's a combination of everything. It's a combination of people not wanting to sell right now for various reasons.

Dave Burnett:    Well, if you have to sell, if you're staying the area you've got to buy.

Thom Dallman:  Exactly. Exactly. And we do, we're growing. We're a growing valley and we have a lot of people that are still moving in. Our sales for 2017 exceeded 2016. We had a little over three and a half percent increase in sales in general in 2017 versus 2016. So we're continuing to have a massive amount of sales. A lot of people moving into town. The problem is that we just don't have any inventory. Nobody wants to sell because they don't want to buy, have to buy at the top of the market or what not. And so I think it's becoming more of a necessity for people to go to new construction because there's just not enough out there. So a lot of those home builders like Corey Barton's and Hubbell Homes and stuff like that, you know, who have homes ready to go and stuff like that, those homes are selling.

Dave Burnett:    So we're really seeing that growth then out in those bedroom cities of Boise because that's where the most land is to be able to build new subdivisions.

Thom Dallman:  Yeah. Yeah. I actually ran some numbers this week for a different report, but I was kind of shocked to find the top city in new construction sales for 2017, what would you guess was top sales?

Dave Burnett:    I know it's probably not Boise because there's just not a lot of property there.

Thom Dallman:  Exactly.

Dave Burnett:    So it's going to have to be like Kuna or somewhere, isn't it.

Thom Dallman:  Yeah. It's Star.

Dave Burnett:    Star, Idaho.

Thom Dallman:  Star beats the top of the list with 46% of their sales were new construction in 2017.

Dave Burnett:    Wow.

Thom Dallman:  Yeah. Star.

Dave Burnett:    That's almost half.

Thom Dallman:  Almost half of their sales were new construction. Star is such and up and coming growing town that a lot of builders are out there building new homes and stuff like that. A lot of people are moving there because they really enjoy that smaller town feel and still have the convenience of getting into town.

Dave Burnett:    I think the other thing with Star is that, I mean for so long everyone commuted to Boise for work. But Canyon County has grown so much and that's a tribute to those folks in administration in Canyon County and in Meridian, that now Star is really kind of accessible to Canyon County and to Boise and to Meridian. It's everywhere.

Thom Dallman:  It's such an essential spot to, yeah, be able to get to almost anywhere.

Dave Burnett:    Yeah.

Thom Dallman:  Up into the mountains. Into downtown Boise. Up over into Caldwell. Like you said with just Meridian even growing and putting in convenience spots for people to go to along Chinden there. Yeah, it's just, it's a great town to live in.

Dave Burnett:    That is amazing.

Thom Dallman:  Yeah.

Dave Burnett:    That almost half is new construction.

Thom Dallman:  Half. Half. It's followed closely by Middleton at 35%. 35% in 2017 of the home sales in Middleton were new construction.

Dave Burnett:    So that highway 44 corridor in there is busy.

Thom Dallman:  Yup. Yup. It's got a lot of stuff going on. And then probably no surprise to everybody, Meridian is next at 34% of their sales were new construction. Meridian's growing like wild fire. Lots of people love the neighborhoods of the community and everything in Meridian. So that's not a big surprise.

Dave Burnett:    Not bad for a sleepy little cow town, which originally it was a dairy town.

Thom Dallman:  Exactly.

Dave Burnett:    That's all it was was dairies and I don't know that there's a dairy left.

Thom Dallman:  I don't know that.

Dave Burnett:    For a long time, for those who are old timers, all the old timers there on Meridian road where the village sits now, used to be a dairy farm. And when we first moved to town years ago it was a working dairy farm. That's long gone.

Thom Dallman:  Yeah. That's long gone. Yup.

Dave Burnett:    Wow. So where are some of the lowest new builds?

Thom Dallman:  So at the, you can imagine, at the very bottom of the list is Emmett. I did put Emmett on the list because Emmett is a beautiful valley, beautiful little town to live in and stuff. They were only at 6% new construction versus pre-existing homes. And then Boise was at, Boise proper was at 13%. And then Nampa 17%, and Caldwell 21%. Yeah. The bigger cities actually were kind of at the lower end of that.

Dave Burnett:    Let me ask you this real quickly. When it comes to new construction for your agents, are they versed?

Thom Dallman:  Oh, yes.

Dave Burnett:    Because if there's that much going on, how do they get versed for new construction sales.

Thom Dallman:  Yeah. We train them and we make sure that they're in communication with myself and with the senior team leads and make sure that every agent has someone available if they have a question about new construction. Almost all of my agents have done new construction at some point in their career. So, you know, they're well versed in how to deal with those contracts and stuff like that.

Dave Burnett:    Let me ask, in this segment we just have a couple minutes left, let me ask the difference in a home that is being, I guess, you hear the term spec home. What is that?

Thom Dallman:  A spec home is a home that the builder has already gone through the planning process. So they've done the floor plan. They've gone and picked out all the appliances, all the countertops, all the paint colors and flooring and stuff like that. They've already specked out everything and are in the process usually of building it or getting it started.

Dave Burnett:    So you see a lot of those in the big subdivisions going up.

Thom Dallman:  Correct.

Dave Burnett:    Spec homes.

Thom Dallman:  Or specked homes.

Dave Burnett:    And spec stands for speculation?

Thom Dallman:  You know what, I'm not even quite sure what spec stand for.

Dave Burnett:    I'm wondering if it's speculation because they're speculating their going to sell it.

Thom Dallman:  Yeah. It's just a term, one of those terms we've always used and I honestly am not quite sure what spec is.

Dave Burnett:    There is your homework for today.

Thom Dallman:  There is my homework. Exactly.

Dave Burnett:    So a spec home as opposed to a custom home.

Thom Dallman:  A custom home means that you are sitting down with the builder and actually picking out everything yourself. Picking out the floor plan, picking out what kind of appliances you want. They usually give you a budget within your price range and so forth to go pick out lighting fixtures. To go pick out this and that. So you have a lot more flexibility of what you want to do.

Dave Burnett:    If you want to make a bedroom a little bigger or a little smaller they can adjust the blueprints.

Thom Dallman:  Correct. They can adjust some of the blueprints and things like that.

Dave Burnett:    For a minor fee.

Thom Dallman:  For a minor fee, yes. There's always a cost associated with any changes.

Dave Burnett:    So when we hear that new home construction, that is counting both spec homes and customer homes, correct?

Thom Dallman:  Yup. This is everything that was either custom, new construction, spec and anything that was built and put in the ground.

Dave Burnett:    And the agents at CORE Group, they work with all the, you mentioned Corey Barton earlier, they work with all of these people to get these homes sold.

Thom Dallman:  Yup. Most builders, they really rely on the buyers agents to bring people to them. So we work on behalf of the buyers normally, making sure that the buyer's needs are being met. And help them, give guidance. One of my favorite things to do when I help people in new construction is to go with them to pick their selections and help them pick selections that will in the long term hold their value in the house and stuff like that. Make sure that they're picking things that they like but that have value or add value. It's one of my favorite parts of the building process is going to help pick that stuff out.

Dave Burnett:    What would you say, in just the 30 seconds we have left in this, what's one of the things that really gives a home value that you can help pick out?

Thom Dallman:  Oh, gosh, it really depends on the home. That's a really tough one to say.

Dave Burnett:    Is it?

Thom Dallman:  Yeah, I would say one of the most things that we concentrate on is the kitchen, your countertops and cabinets, making sure that you have the right combination that, and flooring, that you have that right combination that will live long and are desirable in whatever area it is.

Dave Burnett:    Very good. Now we've learned a few things. Things we've learned today. Star, Middleton, red hot. Custom homes, spec homes, that's your homework by the way, that they both go into that category of new home sales. And just the fact that there are more new homes being sold right now than existing homes, which again is just astounding.

Thom Dallman:  Yeah. It's a unique phenomenon due to this low inventory we have right now.

Dave Burnett:    Well, Thom, and obviously it's one of the things that's happening, people who are selling their home or having new ones built, if somebody wants to talk to you about both selling and building a new home they can get ahold of you?

Thom Dallman:  Yeah. Yeah. Just give us call, 208-933, no, sorry. I totally messed that one up.

Dave Burnett:    933-7777.

Thom Dallman:  933-7777. Yes.

Dave Burnett:    Or go to Coregrouprealty.com. You're always welcome to come by and talk to them and they'll be happy to show you what they have and what they don't and to get you going.

Thom Dallman:  Yup.

Dave Burnett:    We will continue on the other side. It's the Idaho Real Estate Buzz being brought to you by CORE Group Realty, Coregrouprealty.com, that's the website and the sponsor. Find out why they say, "You get more with CORE."

 

 

 

-          Segment #4

Dave Burnett:                    This is the Idaho Real Estate Buzz, I'm Dave Burnett along with Thom Dallman, the co-owner of Core Group Realty and the designated broker. Thom we're bringing Naomi back.

Thom Dallman:                  We are. We've had such a great conversation with her last time. You yourself were intrigued by the fact that as a single young gal, she has invested in her own future by buying a duplex.

Dave Burnett:                    Which absolutely fascinated me in that, can I ask how old you are Naomi?

Naomi:                                 Yes. I am 23.

Dave Burnett:                    23. When I was 23, gosh I was in my mid to late 20s before I even started thinking about buying a home.

Thom Dallman:                  Exactly.

Dave Burnett:                    This is a decision that you have made to go out and make a, not only to buy a home but to make an investment.

Naomi:                                 Yes.

Dave Burnett:                    And it's working out well for you.

Naomi:                                 It sure is. I love it.

Dave Burnett:                    We'll get to that here in a minute. It just perked up my curiosity when we started talking about this before when it comes to renting because at this point, there's a lot of rental buildings going up. There's a lot of apartment complexes.

Thom Dallman:                  Apartment complexes.

Dave Burnett:                    They got one they're finishing over in State and Glenwood which has 15 bazillion units.

Thom Dallman:                  It's huge.

Dave Burnett:                    It is. When you typically think of somebody in their early 20s, you think, they're going to get an apartment, they're going to rent.

Thom Dallman:                  Exactly.

Dave Burnett:                    That may not financially be a wise move.

Thom Dallman:                  Exactly.

Dave Burnett:                    To buy might be a great move.

Thom Dallman:                  We've talked about it in a few segments in the past just about the fact that right now the rents are running very equivalent to what you can get mortgage loans for. Sometimes it's better actually, depending on the square footage and the price of the rents to actually get into a house and start investing in your own future and stuff as far as equity.

Naomi:                                 I'm actually paying less than I ever was paying in rent right now.

Dave Burnett:                    To buy.

Naomi:                                 Yeah. On my mortgage.

Dave Burnett:                    Did you buy a duplex?

Naomi:                                 Yes. I bought a duplex.

Dave Burnett:                    That what is typically considered an investment property.

Thom Dallman:                  It is.

Dave Burnett:                    Not only does she have a place to live, talking about you as if you're not sitting right here. Certainly a place to live but also has an investment to help pay for that place to live.

Thom Dallman:                  Exactly. That's the great thing about duplexes and triplexes and fourplexes is that you can move into one of the units and rent out the other unit or units and be able to help subsidize the mortgage payments on those properties.

Dave Burnett:                    Let me ask you this, this again was something that, and call me an old sexist man if you want, when I heard here's a young woman in her 20s buying an investment property, typically you tend to think of old guys doing that. What is the statistics when it comes to ownerships and buying into rental properties?

Thom Dallman:                  You know what? I don't have the exact stats but more and more, I've read a few reports, one of them was on usnews.com that said more and more young people especially young people in bigger metropolitan areas are starting to invest out in rural areas, buying single family homes and buying duplexes and triplexes 'cause they understand the importance of that investment into themselves in the long term possibility. There's all that hubbub myth that goes around that social security's not going to be around when those people, when everybody retires. When young people retire.

Dave Burnett:                    Which might be the truth.

Thom Dallman:                  It might be true, it might not. Younger people are realizing early on that it is really important to get out there and buy those rental properties, buy investment properties that you can invest in your own future.

Dave Burnett:                    My father drilled into me when I was young, nobody's going to take care of you but you.

Thom Dallman:                  But you. Exactly.

Dave Burnett:                    Naomi, for you, what was it that made you decide? What was the tipping point? Or who influenced you to invest in a rental property?

Naomi:                                 I would say that it was definitely mostly my dad. He owns properties all over Idaho and in a couple different states as well. He was able to retire at 55. I thought that that was something that I would like to do too. I really wanted to look into it and it's funny because I thought that it was such a good idea that I had actually signed a year lease, a month or so before and I got out of that because I couldn't say no to this one duplex that I had found. But had just barely come back on the market.

Dave Burnett:                    For you, how is it living next to your, I guess it would be your client? Is that working out okay for you?

Naomi:                                 It is because I have a different property manager who is actually my dad. He manages a bunch of his own properties and such. I just thought it would be easier to do it that way so that I didn't have somebody knocking on my door needing something.

Dave Burnett:                    I've got a dripping faucet.

Naomi:                                 Yeah.

Dave Burnett:                    That is something though because it is an investment. Upkeep is something that you have to take care of. Obviously you're getting a lot of council from your dad on that. Is that working out okay for you?

Naomi:                                 Actually I have had nothing go wrong with my tenant side at all. It's been my side. But my lender ...

Dave Burnett:                    You've got no one to go to but you.

Naomi:                                 Right. But my lender was actually nice enough to get me a homeowner's insurance and such so I've been using that. I have a brand new dishwasher for only $60.

Dave Burnett:                    We have talked about that before, that homeowner's policy.

Thom Dallman:                  That home warranty.

Dave Burnett:                    That home warranty and how there's a case in point where that really worked out well for Naomi.

Thom Dallman:                  Oh yeah, yeah. It works out very well for lots of people. I've had lots of clients over the years that have benefited really well from having that home warranty 'cause you just never know, especially as you buy some of these older homes, what could go wrong. And they do tend to go wrong very quickly after you move into them.

Dave Burnett:                    It does seem that way. Let me ask you this, again we've talked about that the amount of for sale properties is low out there. Do you have rental units available?

Thom Dallman:                  Yeah, yeah. Actually I was, I decided to look into that a little before the show today and yeah, we do have, there's not a lot. There's not a lot so you definitely want to get out and get out there and compete for these but we currently have 15 duplexes in Ada County, as well as 15 in Canyon County that are available and active on our MLS. In Ada County they're ranging from about 125 to 430 so it's a big price range on duplex depending on size and so forth but the average is going around that 227,000 which is an nice single family home as well. We talked a little bit on one of our past segments of that's the average price range for single family homes and how that rent is very equivalent to those types of houses to what you get for a mortgage. 15 duplexes in Canyon County ranging from 80,000 up to 199,000, so the price point's lower. Average on those are about 151,000. Definitely some viable options out there for duplexes.

                                                There's triplexes and fourplexes as well. Not only do you live in one, you can rent out two or three other sides. Definitely a way to get some more income coming in. In Ada County there's 18 of those, Canyon County has 17. Ada County's range around that 257 to 450 so an average price of about 359. Whereas Canyon County's 127 to 499 so an average price of about 270.

Dave Burnett:                    I won't ask Naomi this 'cause it's more of a personal question, but is it at a point where you can almost pay for your mortgage with the rent that you bring in if you have it rented? Is it close?

Thom Dallman:                  Oh yes. Oh yes. I had one gentleman that purchased probably about two years ago a fourplex and I know for a fact that he was able to get from the three units enough to pay for his mortgage. His unit was technically free for him.

Dave Burnett:                    He's living rent free.

Thom Dallman:                  Basically.

Naomi:                                 I'm getting close to that too which is nice too. My tenant's paying for most of my mortgage.

Dave Burnett:                    Let me ask you this Naomi, are your plans to buy a home and then just keep that as a rental or maybe branch out and get another duplex and keep going? What are your plans?

Naomi:                                 I would love to buy another duplex or an apartment complex or something like that.

Dave Burnett:                    Wow.

Naomi:                                 I'm definitely going to keep this one though because right now they're actually building some medical buildings out in front 'cause I had an empty lot there before and so I have a feeling it's definitely going to raise the value. So I'm never going to let that one go but yes, I do plan on buying more.

Thom Dallman:                  Great, great.

Dave Burnett:                    It's a wise move, isn't it Thom?

Thom Dallman:                  Yeah, it really is.

Dave Burnett:                    We'll talk about her as if she's not here again. It's just a smart move.

Thom Dallman:                  Exactly. It's refreshing to see single women, single men actually out there purchasing home. 'Cause it used to be a thought that oh, I won't purchase until I get married and am ready to settle down and have a family. More and more it's getting more common for single people to go ahead and invest in themselves. The National Association of Realtors reported in 2015 that 15% of the homes that were purchased in the US were homebuyers were single women. 15% were single women and 9% were single men. That's almost a quarter of the home purchased were by single individuals who are investing in themselves.

Dave Burnett:                    If find it interesting thought that single women almost double of single men.

Thom Dallman:                  Yeah, isn't that interesting?

Dave Burnett:                    Look at that. The women are smart.

Naomi:                                 We know how to handle our money.

Thom Dallman:                  Exactly.

Dave Burnett:                    I guess that's the case because again, that is just a wise move. For Naomi if you decide you don't want to do that, you've got an investment property that's good if you want to move into a home or whatever you want to do, that is an investment and I was just listening this morning to a financial show that was saying that you probably want a quarter of your investments in hard assets, in property.

Thom Dallman:                  Oh yeah, oh yeah.

Dave Burnett:                    Naomi's off to a great start on doing that.

Thom Dallman:                  Exactly.

Dave Burnett:                    Again, 933-7777 is the phone number to call and you do have those rental properties available for people.

Thom Dallman:                  There are some out there, yes.

Dave Burnett:                    Do you have any on the website at coregrouprealty.com?

Thom Dallman:                  We do not have any currently listed.

Dave Burnett:                    If you go to the website, you're not going to see them.

Thom Dallman:                  You can see all the homes that are available on the website on the MLS, there's a few that you can go to and do home searches for. Multiple unit properties. You can search for it through our website on the MLS but as far as our featured listings, we don't have any current ones.

Dave Burnett:                    Now Naomi, let me, now I'll ask a personal question.

Naomi:                                 Go ahead.

Dave Burnett:                    Were you afraid when you first delved into this? Was it frightening for you?

Naomi:                                 I was because you just never know what unexpected things are coming up that you have to pay for. Fortunately for me I haven't really had too much and I have an emergency fund that I could fall back on as well. But so far it's been good.

Dave Burnett:                    And you got the wise advice of your father and Thom and the folks here at Core Group Realty.

Naomi:                                 Everyone has my back.

Thom Dallman:                  Exactly.

Dave Burnett:                    So that does work. If you're trying to get into this, Thom and the crew here can give you some good advice on what to do and maybe you're a single woman and you're thinking about it, I'm sure Naomi, you'd be more than happy to talk to them about it.

Naomi:                                 Absolutely, yes.

Dave Burnett:                    That is just a great thing. I so appreciate you coming in and talking about it.

Naomi:                                 Thank you.

Dave Burnett:                    It's her personal life.

Thom Dallman:                  Exactly, exactly. And it's important to once again, be well informed on what are current rents going for? If you purchase a property you got to make sure that your rents equal the mortgages and stuff like that. Using the team with Diversified Mortgage and us, we can help navigate those waters and figure out the numbers to make sure that they work 'cause you don't want an investment that's upside down and that you're not able to collect enough rent.

Dave Burnett:                    All right if you have questions about rental properties, you can give them a call 933-7777. When I say them I'm talking about the folks at Core Group Realty. We'll continue on the other side here 580 KIDO.

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