We have SO MANY new listings to talk about today! Thinking about renovating your home sometime soon? Thom and Dave have some insight on the process, as well as why it is so important to have a real estate professional representing you in any real estate transactions. Ron Wieczorek from Flagstone Bank joins the guys to keep us all up to date on what is happening in the home loan department.
Dave Burnett: This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, also one of the Associate Brokers at Core Group Realty at eXp. CoreGroupRealty.com. That is the website you can always go to 24/7, or you can give them a call. 208-933-7777. If you get a chance to-
Thom Dallman: We got people standing by.
Dave Burnett: Yeah.
Thom Dallman: Call us. We'll tell you all about all the great homes we have.
Dave Burnett: And not only... We're going to find out from Shawna and Clay some open houses going on this weekend, some activities, as you have some great listings.
Thom Dallman: We've got some listings coming on, so if you go to CoreGroupRealty.com and check on our featured page, you'll see these listings posted on there for everybody to view. See the pictures and get links to them, and get all the details, but while you're listening to this, we can give you some of those details now.
Dave Burnett: Exactly.
Thom Dallman: On the radio, so we're going to have Shawna go first. Shawna's got a new listing that she wanted to talk about.
Shawna Schnabel: Hi there. Yes, I have a beautiful home out in Kuna that's just new to the market. This home was built in 2015, and since then, they've replaced all the flooring in the major part of the home with beautiful hardwood, or solid surface engineered wood flooring, which is it's just absolutely gorgeous. This home's just barely under 2000 square feet, all on the main level with the exception of a bonus room up above. Does have four bedrooms, plus that bonus room. One of the bedrooms could easily be used as an office. It is in the front of the house. The maintenance on this home is just unbelievable. They have taken such good care of the home. It's just really, really a gorgeous property. Would love to have you all come out. We're going to be doing an open house Saturday and Sunday from 1:00 to 4:00, so come on out and check this home out, and say hi.
Thom Dallman: Cool, cool. What size of lot is it on?
Shawna Schnabel: The lot's .16, so just kind of a standard lot. The backyard's a little bit on the small side.
Thom Dallman: That's good, though. Less mowing. Less maintenance you have to take care of.
Shawna Schnabel: There's literally no mowing in the back. It's designed as a zero-maintenance backyard.
Thom Dallman: Oh, nice. Even better.
Dave Burnett: Very, very nice.
Thom Dallman: Yeah. You might find a home.
Shawna Schnabel: So super great property for someone who's looking for that low-maintenance yard.
Dave Burnett: And you know, Shawna, Kuna has become such a desirable area. Thom and I were talking the past couple of weeks just about... That is one of those areas that has just exploded.
Thom Dallman: Mm-hmm (affirmative).
Dave Burnett: As far as new homes, and different businesses that are out there and offer the... No offense to downtown Boise, but you don't have to go downtown to get what you need as you always did.
Thom Dallman: Exactly.
Shawna Schnabel: Yeah, totally. It used to be where you did have to come into Boise for most shopping, but they are putting in so many new things out there that you really don't.
Dave Burnett: Yeah.
Thom Dallman: Mm-hmm (affirmative). Yeah.
Shawna Schnabel: You've got beautiful new grocery stores, and just all kinds of things going in there.
Thom Dallman: Mm-hmm (affirmative). But you still got that rural feel of just being kind of away and-
Shawna Schnabel: Yep. Still a little quieter-
Thom Dallman: Yeah, quiet and-
Shawna Schnabel: -and nicer up there. Yeah.
Thom Dallman: Yeah. Awesome.
Dave Burnett: You got to like that in Kuna.
Thom Dallman: Cool.
Shawna Schnabel: Yeah.
Thom Dallman: Yeah. Exactly. And then we also have Clay here to chat about his new listing that's coming on. What do you got for us, Clay?
Clay Lindquist: Well, I've got a home out in Caldwell. Do you guys know where the Pheasant Run neighborhood is?
Thom Dallman: I do. Yeah.
Clay Lindquist: Just off of KCID Road and State Street?
Thom Dallman: Mm-hmm (affirmative).
Clay Lindquist: Beautiful home built in 2006. It's about 1600 square feet on a .14 acre lot, so smaller lot again. Less maintenance, but what's beautiful about this home is it was built kind of in a more custom neighborhood situation. All the homes are unique and different, and they all have gorgeous landscaping up front, especially with this home. It has several mature trees and established landscaping, rock. It's all just been beautifully kept.
Thom Dallman: Nice.
Clay Lindquist: Yeah. Interior has vaulted ceilings, high ceilings. Hardwood floors in the kitchen. Granite tile counters. Extended backsplashes. It's got all of the different small details that you'd like to have in a home.
Thom Dallman: Awesome, awesome.
Clay Lindquist: It'll go live soon.
Thom Dallman: It'll be live soon.
Clay Lindquist: Yeah. It'll be live. It'll be live. But yeah, come on out and take a look. It's absolutely gorgeous, and it's very convenient right to downtown Caldwell, and they've done a lot there as well.
Thom Dallman: How many bedrooms and baths was that?
Clay Lindquist: Three bed, and it's a two bath. And it does have an office slash bonus room, maybe office, dining area up front as well.
Thom Dallman: Cool. Cool. Awesome.
Dave Burnett: Out on the State and KCID Road area. And just for those who don't know, KCID is the four letters named after a radio station which used to have a tower out there.
Thom Dallman: Oh! I was wondering why it's named that.
Dave Burnett: A lot of people wonder, "Why is it KCID? What's Kcid?" But it-
Clay Lindquist: Yeah. That's what Google Maps likes to call it is Kcid Road.
Thom Dallman: Kcid Road, yep. Yep. Exactly.
Dave Burnett: KCID Road out in that area, North Caldwell, which again, much like Kuna, that area out toward North Caldwell and Nampa just growing at such an incredible pace. Again, all the shopping, everything you need right there.
Clay Lindquist: Well, especially with the new Indian Creek Plaza out there. Absolutely gorgeous. They've got the skating rink during the winter, and festivals every weekend during the summer, so it's gorgeous.
Thom Dallman: Awesome.
Dave Burnett: And both of these, you can find more information online about them, Thom.
Thom Dallman: Yep. If you go to CoreGroupRealty.com, and go to the featured listings page, they'll be posted on there. So you can see all the details there, and get a direct link into all the information on our Core home search site as well.
Dave Burnett: And if you want to get in contact with either Clay or Shawna, their contact information is on the website at CoreGroupRealty.com. You can drop them an email, let them know, "Hey, I'm kind of interested in this house," and find out more information personally that way too.
Thom Dallman: Yep, yep. If you give us a phone call at the 933-7777 number, there's someone standing by that can also give you the information in case Clay and Shawna are busy.
Dave Burnett: Yep. Very good. And always, you can check out that website 24 hours a day, or give a phone call, and get the information as well. We appreciate you guys coming by.
Thom Dallman: Yeah, thank you guys.
Clay Lindquist: Thank you.
Shawna Schnabel: Thanks.
Dave Burnett: I kind of like that. You know, just this past winter was the first time I'd really been out there.
Thom Dallman: Oh yeah?
Dave Burnett: Went out for the light thing that they do with all the skating, and it is just... What has happened in downtown Caldwell... To the mayor and the city council, the chamber of commerce there, just a tip of the hat to them.
Thom Dallman: Yeah. Kudos to them for renovating that and making it so beautiful.
Dave Burnett: They just revitalized that area.
Thom Dallman: Mm-hmm (affirmative).
Dave Burnett: It's absolutely awesome if you haven't been there. We'll continue on the other side. It is the Idaho Real Estate Buzz being brought to you by the folks at Flagstar Bank, and of course by the folks at Core Group Realty at eXp. CoreGroupRealty.com, the website. 208-933-7777. Find out why they say, "You get more with Core."
Dave Burnett: This is the Idaho real estate buzz. He is Thom Dallman, the co-owner, associate broker at Core Group Realty at EXP (208) 933-7777. That's the phone number for you to call or you can always go to CoreGroupRealty.com. We get a chance each week to talk to-
Thom Dallman: Ron.
Dave Burnett: Not only to hear but to learn from Ron with Flag Star.
Thom Dallman: If you've been listening, we you know about Ron's potpourri and all of his assortment of topics that he has so...
Dave Burnett: But I will say this, Ron, every week I come away with a new nugget of information from you.
Ron Wieczorek: I hope you can leave today with more than just one, but I appreciate that.
Dave Burnett: Maybe. By the way, Flagstar is an equal opportunity lender. Want to get that in there for you as well. We were talking a little bit about housing in California and it really has gotten just insane.
Ron Wieczorek: It has got insane and the housing market has become, in my opinion, unreasonably high and I'm probably not alone in that stance. But when you think in California, you know, some people even think of it as its own economy because it's so huge and one thing that kind of flew off the page when I was reading an article recently about some of their prices and how much equity is in houses or what they're valued at is that California's housing market now accounts for... I'm going to let you answer this to see if you guys can get close to this number. What percent of the nation's housing value market? So is California 2% of the United States, is it 5%? What number do you think California accounts for the nation's housing market value?
Dave Burnett: You know, I'm going to go out and say it's over 10%.
Ron Wieczorek: Okay.
Thom Dallman: I'm going to say 10.1%.
Dave Burnett: It's that game. Okay.
Ron Wieczorek: It's a startling number. It's 33%.
Thom Dallman: Thirty three, wow.
Dave Burnett: A third.
Ron Wieczorek: A third of the values in the United States are in California alone.
Thom Dallman: So you're saying they really skew our numbers when we look at national numbers?
Ron Wieczorek: When you look... They really do. Yeah. If you throw out... I remember some classes I used to take that they used to throw out your worst test grade and maybe your highest test grade.
Thom Dallman: Right.
Ron Wieczorek: So if you throw out California, those numbers might be a little more into what's going on with the rest of the nation.
Dave Burnett: I would be curious to see if they broke it down if you took from like a Redding north out of it and you just had the Bay area and the LA area, how much that then would be.
Ron Wieczorek: And I don't know the percentage behind that, but I'm going to get into some numbers on what that looks like for those areas because those are the areas we pick on the most because those areas are the ones that are most out of control. The state's housing value. So what is 33% of the nation's market value? It's 3.7 trillion... It's risen 3.7 trillion since February of 2012.
Dave Burnett: It's risen that much.
Thom Dallman: Risen that much, wow.
Ron Wieczorek: It's risen that much. And you know it drove millions of homeowners into a rich market. It's made some millionaires out there. And that's what we're seeing a lot of that traffic is that people realizing that either they can longer afford California or no longer want to be in California and they're sitting on all that equity and they're able to maybe sell to somebody and get out of that and live really comfortably in other parts of the United States, specifically areas that are very desired, like Boise.
Thom Dallman: Like Boise.
Ron Wieczorek: That's what we're seeing and then that gets my mortgage mind going on what does it take to afford a house there? What areas and what does that mean as far as numbers are concerned? I always talk about debt ratios. With debt ratios, that's how we qualify you for a mortgage and you have your front end debt ratio, which just calculates what your housing obligation is and then your back end debt ratio takes the front end and adds all your other debt, your car loans, your student loans, maybe credit card debt and now you have what you're graded on when you're going to get a mortgage and an acceptable number for the... it just depends on what your debt level looks like. But we want to really keep it in the mid 20s, 30s pushing it to have all... You know, that's all your eggs in one basket, right? Thirty percent of your gross income because now you don't have... That doesn't include taxes coming out, and in 22 of the countries, 35 largest metro areas that number hovers around 30, and those are the bigger areas.
As you get down to the smaller areas, metro areas over a million, when you get into the smaller areas, that number goes down because the houses are more affordable typically. So that's 30% in 22 to 35 largest metros. In California, what do you think that front end number is? We know 30s in 22 of the 35 so we know it's higher than that.
Dave Burnett: I'm afraid to say, because you're going to say it's higher than the one I'm going to say, but you aren't pushing toward 50% are you?
Thom Dallman: That's what I was thinking.
Ron Wieczorek: That's really high and you wouldn't get a loan if your front end was 50. it's 40 and that's still egregious. That's still a large number.
Dave Burnett: That's a big chunk of change.
Ron Wieczorek: That is a big chunk. And what you see a lot of times when somebody's in that situation, it's not them alone. Maybe there's a lot of boarder income where they have roommates or large families, or it's very common in these tech areas where they have just people that work together just bunk up together. So that's making some landlords pretty rich as well.
We kind of touched on this last week. Doctors. We talked about first responders and it made sense where maybe if you were a fireman or a police officer that in those richer areas that you had to commute a little bit to live comfortably and I think we accept that. But what's mind boggling is doctors who make more than $200,000 a year in San Jose can only afford 51% of the homes available. Which in Boise, that's over 98%. If you make over $200,000 you have the pick of the litter when it comes to the homes on the market. Not so much in San Jose and the Bay area.
We talked about those first responders, they can only afford, and this is San Jose, San Francisco, and Los Angeles. For the ones that make over 100K can only afford 10%, 17%, and 25%. San Jose's 10%, San Fran 17%, and LA is 25%. that's making over a hundred grand. So that's a real small... Think about what you're getting if you're only available for 10% of the market. What's on the lower 10% of the market? And that's the guys making over a hundred grand.
Thom Dallman: Exactly.
Ron Wieczorek: So it's really those just blow off the page to me.
Dave Burnett: So how do people buy homes there? Is it through their equity and their trading up, or is it that somebody has given them a big financial gain? I mean, how does anyone buy a home there?
Ron Wieczorek: Well, I think it's a mixture of that. Some have owned the home for quite awhile and now they've just seen those prices grow. The median house price in California alone is $565,000 and that's including your outer areas now.
Dave Burnett: Yeah, that's California.
Ron Wieczorek: Right. So the wages are higher. There's a cost of living. Absolutely. So in San Jose, the annual salary that you need to afford the median house is $238,000. In San Francisco, it's 186,000, and in Los Angeles it's 112,000. These aren't just California numbers, these are in the nation. So the top four of what it takes annual income to buy a home, a median home, is all California. Number four is Boston at 103, so we kind of break up that California monopoly that was going on there.
And then you look on the other side of the spectrum. We talk about the most affordable places, because then that person that maybe doesn't make that wage or has some equity, they're looking at the map, they're saying, "Where can we go that's going to be fairly inexpensive or at least get us to a point where we can afford our lives a little more?"
And then you have places that... and I've talked about, I'm from Pennsylvania and I talked about Pittsburgh a lot and the average income for the median home is less than 36,000.
Thom Dallman: Wow.
Ron Wieczorek: Which is...
Thom Dallman: Quite the other side of the spectrum there.
Ron Wieczorek: Complete other side of the spectrum. You know, that same doctor that makes over 200,000, there's 100%. I don't know there's a house in Pittsburgh unless it's owned by Ben Roethlisberger that they can't afford to buy. OKC, Oklahoma City, is at 38,000. Cleveland is close to 40,000. Memphis is close to 40 and Louisville is right at 40.
Dave Burnett: So where do we rank when it comes to Idaho and Treasure Valley?
Ron Wieczorek: That's a good question. What do you think it is?
Thom Dallman: We're gonna segue right into that.
Ron Wieczorek: Okay.
Thom Dallman: So we're talking income that people need to be able to-
Ron Wieczorek: Afford the median home.
Thom Dallman: Afford the median home.
Ron Wieczorek: Just smack dab in the middle. What does someone have to make to afford that house that's right in the middle?
Thom Dallman: For some reason I have 54,000 in my head, but I feel like that would be-
Dave Burnett: I would have guessed in the 50s somewhere.
Ron Wieczorek: Fifty four, higher, lower.
Dave Burnett: I'll go $54,001.
Ron Wieczorek: You're a little bit... it's pushing 60 so it's 59 and change. But that's close. That's a good number and that makes sense for what I see on a daily basis. I still consider that very affordable.
Thom Dallman: Yeah.
Ron Wieczorek: That's household income. So you know, if you make 36 and a spouse makes 24 that's your 60 right there. So when we talk about, and this is where I always like to come back to, is it's hard to tell somebody who was born and raised in Boise after seeing what's happened over the past two, three years that it's really still affordable but it really still is affordable. There's still a lot out there that if your household income and your debt is managed that you can afford something pretty nice. And then when you pair it with California, then you really see those... how affordable we still are and how desirable we still are. We're getting a lot of traffic from those areas.
Thom Dallman: That's what's spurring our growth still.
Dave Burnett: So we are very affordable but you make that caveat and it is true because you'll run into people who were born and bred right here in Idaho and it's like, are you kidding me? It's crazy.
Ron Wieczorek: Right.
Dave Burnett: You compare it to so many other places, whether it's Seattle or even the Portland area.
Thom Dallman: Oh yeah.
Dave Burnett: It's very affordable to live here.
Ron Wieczorek: Very affordable. Our wages need to catch up a little bit because we did have a big year last year for a growth and equity in homes and it was double digits and it led the nation and was close to... Depending on what month and what numbers you look at, it was anywhere from 16 to 18%, which is...
Thom Dallman: That slowed down this year, but...
Ron Wieczorek: It did slow down this year.
Thom Dallman: It has slowed down.
Ron Wieczorek: Which was much needed and coupled that... Not only has the appreciation slowed, it slowed down nationwide. I think last month was the first month that it saw a slight negative number. Boise did not. Boise still increased, but the nation saw a 0.1% decline in home prices.
Dave Burnett: Ron, if somebody wants to get hold of you at Flagstar to talk about a loan, to talk about perhaps consolidation or talk about just exploring the possibility of getting a loan, rates are really affordable, how do they get a hold of you?
Ron Wieczorek: That's Dave's way of telling me I'm out of time.
Thom Dallman: You're out of time. Time to go.
Ron Wieczorek: My direct number, my cell phone which is always on me is (208) 869-9154.
Dave Burnett: Very good. Or you can always of course go to CoreGroupRealty.com and check that out or call (208) 933-7777. They're listed with the preferred lenders, or preferred vendors I should say.
Thom Dallman: Yep, exactly.
Dave Burnett: Or lenders. Either way.
Thom Dallman: Service providers.
Dave Burnett: Service providers there on Core's website. We'll continue on the other side. This is the Idaho Real Estate Buzz being brought to you by Flagstar Bank and the folks at Core Group Realty at EXP. Find out why they say you get more with Core.
Dave Burnett: This is the Idaho Real Estate Buzz. He is Thom Dallman. The co-owner, associate broker of Core Group Reality at EXP.
CoreGroupRealty.com the website, and that's core, C O R E-
Thom Dallman: That is.
Dave Burnett: CoreGroupRealty.com or call 208-933-7777.
Thom Dallman: It's a great phone number to know, it's easy to remember, and there's always someone standing by to talk to yeah.
Dave Burnett: 208-933 and they just start hitting sevens until it rings.
Thom Dallman: Exactly.
Dave Burnett: And then you'll beep in the ear of the person answering the phone.
Thom Dallman: Exactly.
Dave Burnett: So give them a call, they'll get you all connected with the folks at Core.
You know, let me say this in all honesty.
Thom Dallman: Mm-hmm (affirmative)
Dave Burnett: One of the nerve racking things for me in life, one is buying a car, and the other is dealing with real estate. And I think it's because-
Thom Dallman: Yeah. They can be super nerve racking cause they're so much-
Dave Burnett: It's a huge investment.
Thom Dallman: Yeah. And there's so much information out there and there's so much stuff that you have to filter through with these things you know. What's the right car, what's the right house.
Dave Burnett: You start thinking credit checks and loans and earnest monies and oh-
Thom Dallman: Real estate is crazy that way.
Dave Burnett: Yeah I mean, things that you deal with, and I'll say this honestly, these are things that you deal with day in and day out, so it's almost mundane for you to you know, earnest money is something that is mundane for you.
For me as a consumer, it's like, you want some of my money to do what? What's that for? But that's where having a real estate agent, somebody you've interviewed, somebody you know, somebody you trust.
Thom Dallman: Exactly.
Dave Burnett: Really be a help.
Thom Dallman: Well yeah, if you think about it, it is one of those biggest investments and we talk about that often on this radio show, about how it is your biggest investments. So why not have an advocate. Someone who's educated and who's been doing this long enough to know the ins and outs and to help guide you through that process.
So many people out there watch HGTV where they can do it themselves and you know not have to pay realtor fees, but-
Dave Burnett: They flip homes and uh oh.
Thom Dallman: Exactly. It's not that easy.
It's not as easy, and you can find yourself in A, a lot of legal issues if you're not doing it correctly. You can find yourself in a house that has way more issues than what you had anticipated, the proverbial money pit if you will, and stuff like that. If you don't have your professionals helping you through the process and stuff so.
Dave Burnett: I guess an expression that comes to my mind is, I bit off more than I could chew.
Thom Dallman: Mm-hmm (affirmative).
Dave Burnett: And that I thought, I thought I could do it. And that comes down to selling your home as well.
Thom Dallman: Exactly.
Dave Burnett: I'm gonna sell it myself, I'll stick a sign in the yard how hard could it be.
Thom Dallman: Yup. National statistics show that the For Sale by Owners typically sell, I think the percentage is something like 5 or 6% below value. People actually lose money on their home sales when they actually try to a For Sale by Owners vs hiring a real estate professional.
Dave Burnett: So when you go and say, I'm gonna save that commission, good chance you're just losing that much money.
Thom Dallman: Exactly.
And that's one of the reasons too, to hire a real estate professional. A lot of people who do For Sale by Owners they, they go to websites like Zillow and realtor.com and get their zestiments, if you will. But these systems that are out there to make these automated evaluations on homes, they base those off of just specific statistics as far as number of bedrooms, size of house and so forth. They have no way of going in and saying hey, my house has granite countertops, my house has hardwood floors, my house has been recently updated and renovated. You know, we have a new roof and stuff like that.
It can't, those systems can't do those comparisons. So those values-
Dave Burnett: Nor does it give, oh look, we're right in the flight path of the airport.
Thom Dallman: Exactly. Exactly.
It doesn't give you the specific evaluations on your house, so that's why it's really super important to find an educated, well versed real estate agent that knows the market, that knows your specifics of your community and so forth that your house is in. So you get a true value on your house, and understand where you may need to invest some money to get some more money out of your house.
That's one of the things that we do, is we come in and we consult with our sellers and say here, you know, if you fix this, if you take this down, if you put some paint on this wall, you'll be able to increase the value by $10,000.00 and you know it makes a little bit more money and so forth so.
Dave Burnett: That's where I feel in my contact that I've had with your agency, and I know you train them this way as well, there is no perfect house. Let's get that out of the way. There is no perfect house. You can buy a house, and you know what, somethings going to be wrong with it. Even a brand new one. So it's nice to have an agent that's honest said, here's the plus' of this, and here are the downsides.
Thom Dallman: Exactly.
Dave Burnett: And give you a chance to make a decision.
Thom Dallman: And I'm gonna attest to that cause I'm working actually with some wonderful clients that I sold a house to them 10 years ago. This was gonna be their forever house, the house that they were gonna bring up their kids, have their grandkids come and visit. And they were like this is the perfect house. This is the house we love.
Now 10 years later, fast forward 10 years later they contacted me and said, well, remember how we said this was the perfect house, well we think it's time to find a new house. We've outgrown it, we're ready for a new one, we're thinking about possibly growing the family and stuff like that so.
So yeah, the perfect house may not be perfect after 10 years.
Dave Burnett: I think it's, one of the reasons just having an agent that is honest with you. Again we've talked about this before, but you know what, maybe you didn't need a real estate agent a month ago, and now you've decided you have. The fact that I had the chance, I can come into Core Group and interview and talk to you or talk to the agents and find one that fits right, because not everybody's personality is the same.
Thom Dallman: Exactly.
Dave Burnett: And I hate that next up mentality where it's like, you know you walk on the lot, next up, here's your sale. You know what, this may not be the right person but, you'll help guide and get somebody who fits.
Thom Dallman: Exactly.
And I'm, I mean I like to think that we have a agent that will fit almost every single personality type. But at the end of the day, you can't always guarantee that, that you're gonna have that right fit with our real estate agent so, that's why if it's not working out, just let us know, and we can help you find another agent. Or if it does happen to be another agent, we don't hold people to contracts, we don't have any cancellation fees or things like that with the team at Core Group cause if we're not servicing you correctly and not been giving you the best experience on purchasing a house or selling a house, then you know you have every right to cancel that contract and find someone that will give you a better experience.
To us it's more important for people to have a great experience going through this process because it is nerve racking, there's so much going on and so forth that you need to know and have that piece of mind that you've got someone covering your back.
Dave Burnett: And I know we've kind of wiggled our way into this, as to why you need to buy a real estate agent. Do you have a list of some of the reasons why I wanna hire a real estate agent.
Thom Dallman: Yeah, yeah. Like we said kind of that knowledge and that knowledge base of being able to help and know things that have happened from past experiences and stuff like that is super important. To gain the market knowledge that we have. We talk about market stats at all of our meetings that we have with our agents so that they're familiar with what's happening in the market place and keeping and eye on the market. So that information is super valuable.
But just that piece of mind of helping people through the process. Making sure that they're well educated, they know when it's going to be time to actually come up with some money for earnest money for your inspection, appraisal and so forth.
The professional networking that we can do. We have, you know we've been in this industry, Core Group started in 2010, so we're going on our 9 year anniversary coming up. We've accumulated quite a list of professionals that we can recommend that when you need service and when you need help. You know if you're out there on your own you have to kind of rely on internet reviews or calling up people, and interviewing them and stuff like that, where as we can give you that list of professionals and networking opportunity to get people in to help you with fixing up your home and those little things that pop up throughout the home ownership so.
And, we are skilled at negotiating. That's what we've trained for. That's what we do. Is negotiate and help to make sure our sellers are getting top dollar for their house, and that the buyers are getting the best deal that they can when they're purchasing a house so. That's our expertise and part of what we do for our clients, is helping them to navigate that negotiation process. Cause once again, that can be pretty nerve racking. Having to go through and like you know trying to figure out the paperwork, and how much money am I losing if I pay for closing costs for my buyers. If its a VA loan, you know how much money does that cost me as a seller.
Things like that that we're familiar with that we've done over and over again. The paperwork, who gets what kind of paperwork. You're dealing with a buyer that has a lender, even title company. You have to get paperwork to people when you get an inspection done. Who gets a copy of that inspection, do you give that to the sellers. Just that type of thing, those type of things that just in the whole process of trying to get your home sold.
Dave Burnett: Really a lot of gears involved in it to make the machine run.
Thom Dallman: Exactly.
Dave Burnett: It's not just putting a sign in your yard and signing off the title company, there's a lot of stuff in between.
Thom Dallman: Exactly, exactly.
There's a lot in between. Just the getting the feedback from other agents when you're selling a house and you have agents coming through and showing the house and giving the feedback and accumulating that information and that's time consuming as well and that's something that we do for our sellers, so they know where they're at in the marketplace if we get a lot of feedback that the house is priced too high, or yeah I really like the house but the flooring was too old. Then we know we have something to work on there.
Things like that, that a seller that does a For Sale by Owner, that they have to kind of navigate. They have to schedule those showings where, as a real estate agent we take care of that for our sellers so that they just have that piece of mind of not having to manage all that scheduling and time frames.
Dave Burnett: I think it's a nice piece of mind to be able to go, okay Tom what do you think? Would it help me sell the house if we replaced the carpet? Or would it help me sell the house if we re-did whatever it might be. Those are questions that, for me I can't really answer those, but for you because you're, been through house after house after house with clients, you know.
Thom Dallman: Yeah yeah. We've done this. We've experienced this. We've dealt with lots of sellers over the years so. We know exactly what things will help increase the value. That will cost less for you to do. Minor things that you can do that will help you to get that house sold for the top dollars and stuff so.
Dave Burnett: Al right. Let me pose this for you as we close out this segment. I'm wanting to buy a home, what's the first thing I do, how do I get hold of you and what's the first thing we do?
Thom Dallman: I would say the first thing that you want to do is to contact a lender and to get pre-qualified.
Dave Burnett: Do you have a list of lenders?
Thom Dallman: Ron over at Flagstar.
Go to our CoreGroupRealty.com, go to service providers you'll see Ron on there. Highly recommend contacting him to get yourself pre-qualified so you know what price range you're looking, because there's nothing worse than thinking, oh you know I'll buy a $300,000.00 house just to find out that you only qualify for $250,000.00, cause those houses in the 250 range are very different from the houses in the 300 range.
So that's really that first bit of business is finding out what you're pre-qualified for. Once you get pre-qualified, or while you're getting pre-qualified I would recommend definitely going to our CoreGroupRealty.com, go into our home search site and start looking at homes, start getting an idea of what you like and what you don't like.
You are kind of building that little bit of, here's what I like, here's what I don't like, here's what I kind of really really want in a house, here's the things that are on my wish list but not necessary. Like you said there's no such thing as a perfect home.
Dave Burnett: There isn't.
Thom Dallman: We are just going to try to find them one that checks the most boxes on your wish list so you can start accumulating those ideas and start talking to a real estate professional so that you can get an idea of what earnest money is, you know when you're going to have to bring that earnest money to the table, when you're gonna pay for your home inspection. How does appraisal work, because these are charges that usually go to a buyer, typically and traditionally so you have to be ready for that.
Dave Burnett: We recommend of course that you use a qualified licensed real estate agent. We want to steer you towards Core Group Realty, but feel free to come in and interview, find out if it's the right fit for you and maybe your agent. Don't just settle for the first one, find that one that's gonna do what you need them for you.
Core Group Realty at EXP. Give them a call today. 208-933-7777. Core Group of course one of the sponsors of the Idaho Real Estate Buzz, along with the folks at Flagstar Bank.
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Dave Burnett: They say is the Idaho Real Estate Buzz. Here is Thom Dallman, the co owner, also one of the associate brokers at Core Group Realty at EXP. CoreGroupRealty.com the website (208) 933-7777. That is the phone number to call. You know sometimes, especially in the case where housing is really kind of in short order with inventory being low, some people may want to think about renovating their house.
Thom Dallman Yeah, a lot of people are caught up in this whole flip or flop and home improvements, TV shows and start getting into these home renovation projects and start realizing as they get into it that maybe they bit off a little bit more than they can chew, if you will.
Dave Burnett: Number one and having been to yes a couple of times, make sure your relationship with your spouse is in good order.
Thom Dallman That's on the list. I ran across an article on realtor.com that talked about this specifically, seven things that you may encounter that may tell you it's time to call off the renovation.
One of the topics is your relationship with your partner. Because this is a super stressful time and there's a lot of decisions to be made and if you and your partner are not on the same page, it can cause a lot of marital strife or partners strife, or even if it's a business partner, you can run into a lot of issues.
One person may want to spend more money than what the other one does or you guys may have different aesthetics as far as, oh I want to put in dark colors and make it very dark and cozy while someone else's like, no, I want it bright and airy.
Dave Burnett: I think the biggest stress for my wife and I that we ran into is that number one, it always seems to take longer than you think it will.
Thom Dallman Oh yes.
Dave Burnett: And you think, we can live out of an ice chest with a hot plate for a couple of weeks and then it turns into a month and a half. And it's like I don't want to eat fast food again. I want a meal cooked in an oven.
Thom Dallman Exactly.
Dave Burnett: We laugh about it but that really does become stressful.
Thom Dallman Oh it does. It does.
Dave Burnett: You're like a visitor in your own home.
Thom Dallman Exactly. When you start feeling uncomfortable and like, oh I really don't want to go home to that mess and that go into that, let's eat out every day. That starts adding up as far as costs and just that aggravation of just not having the privacy of your home. Cause you never know when you're going to come home and find the contractors in there working on something and so forth. Cause if you're going through this and you're hiring professionals to do it, it's technically not your home for a while.
Dave Burnett: IT is not, and it is intrusive. I guess that's the word, intrusive.
Thom Dallman It is.
Dave Burnett: You don't realize how much it is until you have contractors going through and doing what they do.
Thom Dallman Exactly, exactly. And I would preface the next part of that as far as the time frames and so forth because people, especially in the summertime, people think, oh, you know, let's renovate our house and get it on the market and get it for sale. But if you think about the time frame that goes through for renovations and trying to find those people and so forth, by the time you get your renovations done, you're going into winter, fall and winter time, which you know, still a good time to sell.
It's never a bad time to sell in the Boise Treasure Valley area. But typically in the winter and fall, fall and winter time frames, homes do kind of even out as far as price increases and stuff like that and sales kind of slow down a little bit because well, most people are in school getting ready for holidays and stuff like that. So while there's still stills out there, they do slow down in the winter time.
Timing is as huge importance and something that people don't think of when they're renovating their homes and look at the time frame of realistically of when you're going to end up getting that home on the market.
Dave Burnett: Or if you're just going to live in the home.
Thom Dallman Exactly.
Dave Burnett: Takes more time.
Thom Dallman Exactly.
Dave Burnett: It always does. You know rarely do you go, "Hey look, it took two weeks less to do this than we thought." That's very rare.
Thom Dallman Right. Exactly. So realistic time frames are something that... Getting your bids and talking to your contractors and stuff, you can get an idea of time frames from them and make sure you're asking those questions. Like, do you have your team available? How far out is your time frame? What other projects are going to come up that may interfere with this one? Because, let me tell you that one downfall of some of the contractors out there is if they bid yours for $5,000 to do your project, but then they have this other project that pops up that's $50,000 that they can make-
Dave Burnett: Money talks.
Thom Dallman Yeah. Money talks. They're going to say, hey, we need to put yours on hold while finish this other project and stuff.
Dave Burnett: They may come and start yours and suddenly, hey, there's not three people working on this. There's no one.
Thom Dallman Exactly.
Dave Burnett: Why is there only one?.
Thom Dallman Exactly. Oh, we pulled the other two to go work on this other thing.
Dave Burnett: And you know what? That's not to blame the contractors. If any of us were in that situation, we'd do it too.
Thom Dallman Yeah, exactly.
Dave Burnett: They're in short supply right now.
Thom Dallman Exactly.
Dave Burnett: Make sure you have a realistic expectation of what's happening.
Thom Dallman Exactly. So just along the lines of money and stuff, just not budgeting enough or over emphasize or over paying or putting in too much stuff that over improves your house for the neighborhood. So those are two directions that you can easily find yourself going in the wrong direction. And first of all, the budgeting, budgeting not enough money. You know, you budget $5,000 for kitchen renovation and find out that it's actually $10,000 to do the things that you want to do.
So, cause those little bit of this countertop actually cost this much, this back splash cost this much, your cabinets are going to cost this much. Those little add-ons here and there that you may not anticipate could put you out of budget. And so that's what a lot of people find themselves giving up on renovations because they didn't budget correctly and didn't have the access to pay for it.
Dave Burnett: And along with that budgeting, put the asterisk refer to point one, relationship with spouse.
Thom Dallman Exactly. Exactly. Because once again, like you said, or like I mentioned the one spouse may want granite countertops while the other one is just perfectly fine with just-
Dave Burnett: Formica.
Thom Dallman Right. You don't want to cut corners. You don't want to have to cut corners on the wrong items, when you're realizing that you're running out of budgets cause cutting corners on the wrong things could end up getting you into more trouble down the road.
A lot of people think that the sweat equity of doing things themselves, putting up tile, installing hardwood floors, I'll save the money if I don't have to pay the labor and doing these things. But unless you're really good at it and skilled at those types of things, you can end up costing yourself a lot of money. Especially with floors. Flooring is really hard to make sure that that's lined up perfectly, that you've acclimated the wood to your environment so that it doesn't expand and contract because that expansion and contraction, if they're not done, can all of a sudden start causing gaps in your wood floors, can start your wood floors creaking and stuff like that.
I took some clients out to look at some property this week, earlier this week and one of the houses that we went through, they're like, there's no way we'd buy this house. Every footstep that you took in the main living space, it was creaking and cracking and stuff because they had put down a laminate flooring that they either didn't put a laminate underneath it or I'm sorry, a cushion underneath it or a sound barrier so you could hear it just kind of creaking on the floor that was that they put it over.
If these little projects are not done correctly, they can end up costing you in the long run.
Dave Burnett: You really don't want to lay flooring and get to the end and go look, there's like two inches on that side and three inches on that.
Thom Dallman Exactly.
Dave Burnett: It's supposed to be about the same when you get done.
Thom Dallman It's never as easy as they make it look on TV
Dave Burnett: Trim should be all that needs to cover that.
Thom Dallman Yes. Yes. And that's one thing I've learned in all my time of flipping homes and stuff like that and trying to do some sweat equity. I'm no good at cutting trim, cutting the corners and like making sure that they match up just right.
Dave Burnett: Need a good miter box for that.
Thom Dallman Yeah, right, exactly.
Dave Burnett: Some of the other pitfalls and where you think you need to quit renovations, what are you got?
Thom Dallman Yeah. Just really, if you're just starting to feel uncomfortable and you're starting to question whether you're going in the right direction, that might be time to just kinda stop and back off and maybe reach out to a professional and get some advice on whether you should keep moving forward or not.
If you're in there, laying tile and you realize the tile's not laying out right, just stop, just stop what you're doing. Don't continue on, because you could end up, like I said, costing yourself more money to rip that out and replace it and stuff like that.
If you're finding that you're running low on funds and you're going to have to reach out to someone to borrow some more money to finish the project and you may have found yourself in that predicament where you've overspent and so forth. Make sure that if you're fighting with your spouse, it may be time to take a step back and say, "Okay, should we hire some professionals to get in here and finish this off or not?
Dave Burnett: And in two areas where I recommend that you hire somebody, you may think about doing it yourself, anything electrical or anything plumbing.
Thom Dallman Yep.
Dave Burnett: Those are the two areas that unless you are a licensed plumber or electrician, you really should hire somebody.
Thom Dallman You really should.
Dave Burnett: And you could do it yourself, but you may really regret what you do.
Thom Dallman When you get down a certain path with plumbing and electric and stuff, you might have to start getting permits and so it's really good to have a professional involved in that in case you do have to get those permits and you maybe you don't realize that now's the time for a permit and we better get this done. If you build a house and you do those renovations and you don't have those permits, then it gets kind of tricky when it comes time to sell.
Dave Burnett: That could get you in the end of it and the other thing is when suddenly you're tying to cook some toast and you're popping off circuit breakers you may have done something wrong. On those two things, always get a professional involved.
Thom Dallman Exactly. I agree with you 100%.
Dave Burnett: That's the smart thing to do. Tom, if somebody wants to get more information from you about renovations, maybe one of the preferred vendors that you have, that preferred list-
Thom Dallman Yeah, CoreGroupRealty.com is the best place to go. We have the service providers tab there with our list of our people that we trust and that we've had great experiences with. One Call Restoration's on there, Darius is the owner of that company and he's done an amazing job for us for home improvement stuff. They do mold remediation, all that kind of renovation stuff. Great company to work with if you do have those issues. We have him on here every so often talking to him and giving helpful hints.
Yes, the CoreGroupRealty.com service providers tab or just give us a call, (208) 933-7777, and we'll have someone standing by that can help direct you as well.
Dave Burnett: It's the Idaho Real Estate Buzz, by the way, if you're needing maybe a second or a line of equity, Ron at Flag Star Bank, he is, of course one of the sponsors of this program could help you get that taken care of as well. They're one of the sponsors along with the folks at Core Group Realty at exp. Call them today, (208) 933-7777. Find out why they say you get more with Core.