Join us today for a little history on our company! We still can’t believe it has been nine years since we opened! The guys also chat about how staging your home can impact the sale of it. Wondering what the current area’s market is looking like? Tune in to find out.
Dave Burnett: This is the Idaho Real Estate Buzz. He is Thom Dallman. He's the co-owner also and associate broker at Core Group Realty @ eXp. CoreGroupRealty.com the website you can always go to or call 208 933-7777.
It truly is a great time to buy right now.
Thom Dallman: It really is.
Dave Burnett: Rates are low. We'll be talking to Ron Wieczorek coming up in just a few minutes about what's happening with rates and what's happening in the marketplace. Rates are there. I think we're starting to see a stabilization of pricing, aren't we?
Thom Dallman: Yeah, yeah. Our pricing is still going up a little bit.
Dave Burnett: But not crazy like it was.
Thom Dallman: Not crazy like it was. I have some numbers here, comparing to last year. Resale median price is up 6% from last year but remember year after year the last couple years it's been 11, 15, 18% increases. To have that 6%. I'm sorry, I apologize, 6% was from last month. It's 14% from last year. Same month last year. But once again, we were at 18, 19% increases.
Dave Burnett: Where should, in your opinion, where should that number be? If it was just healthy.
Thom Dallman: For healthy, I believe they say it's between four to 5% increases. Four to six I think is what they usually quote. We're still doing major leaps and bounds.
Dave Burnett: For those who own, bottom line is, for those who own a home, good news, your home's worth lot more money.
Thom Dallman: Exactly. Exactly.
Dave Burnett: For those looking to buy, you need an agent to help you get through that jungle.
Thom Dallman: Exactly. Exactly. There's not a lot of options out there right now, especially in the entry level homes just because they are going so quick. There's a demand for them yet the inventory is so low right now. It's a struggle to get into that entry level home for a lot of people. But we have them. They're coming on. I actually have one of them coming on this week. This weekend it came on live. 9141 West Littlewood Drive in Boise Idaho is my newest listing. It's a five bedroom, two and a half bath, 2,299 square foot house so almost 2,300. Has a two car garage. Has a big backyard. Fully sprinklers throughout. It has a great living space separated from an actual family room.
Dave Burnett: That nice.
Thom Dallman: And that opens into the dining room and kitchen. They just put down some laminate in the last few years. They just went through and cleaned the carpets. They put in some new vinyl in the master bathroom. The master walk in closet is huge, you have lots of space to hang all of your stuff up. Once again, it's five bedrooms so there's room for everybody.
Dave Burnett: Yeah, for those who have a large family, I did not have a large family but we had friends who did, it was always a struggle. He had all those kids and oh my gosh, we only have a three bedroom, what are we going to do? Where are we going to put them all? Bunk beds and blah, blah, blah. To get a five bedroom home, to get a family room and a living room.
Thom Dallman: That much space is ...
Dave Burnett: That is nice.
Thom Dallman: For $270,000 is a great price for this. And it's in Charter Pointe, it's walking distance to the school there in Charter Pointe, as well as the community center. They have some great pools there. A community pool there for you and clubhouse for everybody to go to. Playgrounds, tennis courts, all that stuff. It really truly is walking distance to a lot of fun stuff.
Dave Burnett: What's the address there?
Thom Dallman: It's 9141 West Littlewood Drive.
Dave Burnett: Okay, so that way if you want to put it into your Google maps and take a look at it from the sky.
Thom Dallman: Exactly.
Dave Burnett: Call the folks at Core Realty @eXp and get set up for a chance to go see it.
Thom Dallman: I would probably suggest going to CoreGroupRealty.com and looking at our featured listings. It's right there. You'll see all the information on it and a link to go see the pictures as well.
Dave Burnett: Excellent. That one's there for you at coregrouprealty.com.
Thom Dallman: Exactly, exactly.
Dave Burnett: When it comes to, we were talking earlier about numbers and the fact that entry level homes, in a little bit of short supply. I think Ron's going to be talking a little bit about where we stand as far as those who have owned homes and those who are trying to get into homes. If somebody is trying to get into an entry level home, what's considered entry level financially now?
Thom Dallman: I would probably say anything under 300 right now. Our median price point has gone up above 300. It's getting to the point where this one, that I had listed or have listed, is 270, it's an entry level home. It was an entry level home 10 years ago when the sellers bought it. It's still an entry level home, it's just the price has gone up.
Dave Burnett: Cost more money.
Thom Dallman: Just costs more money now. Really, we're seeing that entry level home for a three bedroom, I'm talking about three bedroom, two bath, basic square footage is around that 250.
Dave Burnett: Your traditional Leave it to Beaver home.
Thom Dallman: Correct. Is around that $250k to $270k price point right now. There are stuff that, there's things coming on that are the two bedroom, one bath, the smaller bungalows that do come in around that 200 price point. I have some, a client that's looking for something up to a $175,000. We run across those every once in a while. Condos, town homes.
Dave Burnett: But that really is where you really need a good agent who's on top of it and really is working it.
Thom Dallman: And watching it.
Dave Burnett: So that when it comes up, you get that phone call saying, "Got one."
Thom Dallman: You have to.
Dave Burnett: Let's go look at it.
Thom Dallman: You have to make it super quick as soon as that comes on because they go. Especially anything under $200k. If you're looking in that price point, under 200, you need an agent that is ready to go the minute it hits the market because I can guarantee, it's going to have five or six offers. Unless it's a fixer upper.
Dave Burnett: And that's where I come back to dealing with Core Group Realty @eXp, coregrouprealty.com. You can go with the websites, a big name websites but they don't update often enough and by the time that home is posted on a Zillow or whatever, there may already be three offers on it.
Thom Dallman: Exactly. Happen a lot.
Dave Burnett: Best to deal with the local people on the local level.
Thom Dallman: For sure. For sure.
Dave Burnett: Just a good thing to be doing. Other things happening in the Treasure Valley as far as homes that are out there that we should be looking for? Areas that are hot and ready to go?
Thom Dallman: Let's see, what's the hot areas these day? Just seems like there's so much going on. Honestly, Kuna. I'm amazed at how much activity's going on on Kuna. Out in Kuna I have some clients that are having a build job done out in the new Patagonia subdivision out there off of Meridian Road and Humber I want to say. It's a beautiful home that's being built for them. Great new community that's being created out there. Set out, right now it's set out in the country but we'll see how that transpires in 10 years.
Dave Burnett: I was talking last week with a gentleman involved in the grocery business and we were talking about Kuna. Kuna is kind of where Nampa was. Kuna's right on the verge of starting to get those chain stores, the shopping areas.
Thom Dallman: Exactly.
Dave Burnett: Specific for Kuna but that's all about to happen where you're not going to have to drive into town.
Thom Dallman: Exactly.
Dave Burnett: It'll all be right there for you in Kuna.
Thom Dallman: Be there and convenient for everybody to get there and that's what my clients like about it. That they're excited about the opportunity to live out there and see that growth happen and as that stuff comes in. Right now, there all kinds of stuff already kind of present and being put in there for everybody. Yeah, they're pretty excited about it. I would have to say one of the hot spots definitely is Kuna.
Dave Burnett: And of course you head out to Middleton, Star, different things happening there as it continues to grow. And then just Nampa itself and the Caldwell area.
Thom Dallman: Nampa, Caldwell, Meridian, you can't discount the growth in Meridian.
Dave Burnett: It's amazing. And I'm not discounting the city limits of Boise but the bottom line is, it's pretty well built out.
Thom Dallman: Yeah, exactly.
Dave Burnett: That's why we are spreading out as it goes. You want more information? You want to more about this home Thom has talked about? You can find it at CoreGroupRealty.com or call 208 933-7777, that's the phone number for you to call to get all of the information you need. Flagstar bank, we'll be talking to Ron in just a couple of seconds here to talk a little bit. One of the sponsors of the program along with the folks at Core Group Realty @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, also an associate broker with Core Group Realty at EXP. CoreGroupRealty.com, the website. 208-933-7777, that is the phone number to call. Every week we get a chance to talk to Ron with Flagstar Bank, and talk a little bit about finances and what's happening in the real estate world with finances. During the break we were kind of touching on the fact of, it's always kind of been a world of the haves and the have nots, but there's some numbers that back that up and it's growing.
Ron Wieczorek: It's growing, and I call this, the rich get richer, and I've alluded to it being capitalism-driven, but it's coming out more now on paper than it has over the past couple of years.
Thom Dallman: Becoming super evident.
Ron Wieczorek: Pardon me?
Thom Dallman: It's becoming super evident.
Ron Wieczorek: Super evident, and I think a lot of that, historically, if you look at the numbers, you'll see that this is always been a thing. But I think what happened after 2008, after the market crashed, and all the property values went down, and a lot of people who were employed, were still earning at a level that they could afford entry level homes, or even mid size homes, being on the lower end of the spectrum, and maybe they did, maybe they didn't. The ones that did are really reaping the benefits now. The ones that didn't are now seeing that they have to rent for a little longer, unless they change career paths, or get higher paying jobs, or something happens, because now that boat is starting to pass them by. I hate to say that, but it's just evident of what's going on, as far as our economy, and the economy is doing well. It's just doing well, more well. Is that a term? It's doing more well at the top end, than it is-
Thom Dallman: We'll make it a term. More well, I'm going to use that from now on.
Ron Wieczorek: Where's the Webster at? He needs to write this down.
Dave Burnett: Let me throw a monkey wrench in all of this for you. Are you ready?
Ron Wieczorek: I didn't even start yet, Dave.
Dave Burnett: But you alluded to it just now. If somebody is locked into a position where they're not making much money, you can’t sit back and complain about it. And not to sound like Dave Ramsey, but you can go out and do something about it.
Ron Wieczorek: Right, exactly.
Dave Burnett: This is America. There are options for people to do something, to change their status.
Ron Wieczorek: And there are, there really are. I think a lot of it hasn't hit home yet, though. I think that there's still that hangover of, just three years ago I was able to afford that house, and now, I'm nowhere near that house.
Thom Dallman: Exactly.
Ron Wieczorek: And nobody really likes to look in the mirror and say, "You know, I should've bought that," or "that that was a missed opportunity on my end." The people that did make that conscious decision to buy when the market was more depressed, are really reaping the rewards right now, because they can make significantly less money a year then that person that may be trying to enter the market now, because they're grandfathered in. They have a fixed rate, they have their mortgage payment, they have their budget in place. That person trying to get into the home now, has to make one and a half times more.
Dave Burnett: That's a lot.
Ron Wieczorek: Assuming all else equal. Right? At that same price point, at that same level, at that same, whether it's low-middle class, whether it's middle-class, whether it's upper-middle class, whatever that tier is for you, now, you have to make one and a half times more than you did before, just to afford that house that you were maybe were contemplating before, because the market has made a nice rebound, and more of a rebound than a lot of areas, and ours is one of them.
Dave Burnett: Well, now that I tried to trip you out of the starting gate, let's go back and start and look at some of the numbers of what we see happening.
Ron Wieczorek: This is all because of the rise in the home prices, it means just the larger percentage of the home buyers have to make at least six-figure income. That's where I keep going to this six-figure income, because that's still a barometer for a lot of things. Last year, 2018, one third of homeowners, this is homeowners, not home buyers, homeowners earned at least a $100,000, so that's significance. That's 33% of people that currently own a home. The incomes are growing at a fastest rate for the wealthiest Americans. I kind of touched upon that, and the home costs are increasing at the fastest rates for the bottom 10%. It's as a percentage.
If you think about that, if you're wealthier and you're making more, and the cost per your income is lower than it is at the other range, that's creating kind of a... Not kind of, it's creating a burden for those folks that make less of a wage. The top 10% of wage earners have enjoyed a much stronger wage growth in our recent economic boom. You look at the economy across the board, there's not a lot of people saying, "I'm doing worse than I was doing one, two, three years ago." That's just a fact. But when you look at the top end of it, they're doing a lot better than the people at the bottom rungs.
Like you said, Dave, they can go out and do something about it. It's not overnight. You have to know that it's happening. Right? I think it's starting to sink in a little more at those levels, because there was denial stages, there was like, this isn't happening, oh, it'll go down. I hear it everyday still, "Well, the market's going to crash, so I'm not going to buy." I wouldn't put all my eggs in that basket, because-
Thom Dallman: Right. Because no indication of a crash.
Ron Wieczorek: Sometimes that makes people feel better, to say that, if you've missed the boat on something.
Thom Dallman: To have a reason to put it off, yeah.
Ron Wieczorek: Well, and it might. It has slowed down a little bit. Boise, I always talked about it being insulated, and it is insulated from a lot of the things happening in other parts of the United States. But you see the coastal cities went crazy, and they're cooling down quite a bit, just because at some point it doesn't make sense. You have to be able to afford an area. We talked about even the higher levels, higher service levels, and I talk about doctors a lot. If you're living in an area where a doctor can't afford 53% of the homes, that's not a good formula.
Thom Dallman: No.
Ron Wieczorek: No.
Dave Burnett: It's not. But for Idaho as we, I guess, and I'm putting air quotes in there, catch up with the prices of homes. Because I remember Thom, when we first started doing this show, I mean, $150,000, $160,000 home, that was pretty common.
Thom Dallman: Yeah, pretty common. Now, it's hard to find.
Dave Burnett: And now you get something at that price, it's like, that's an incredible price point. You better jump on that.
Ron Wieczorek: And that's not just Boise, that's across the US. I mean if I have a list here of... And you didn't even see this to say this. I'm going to bring this to the forefront, the 10 most bargain cities where $1,000 mortgage payment is still feasible, and that's where you start getting into those $150,000 homes. These are the 10 most depressed cities in the United States, and that's what you're really starting to talk about when you start talking about median and households in the 150 range. Number seven on that list kind of hit me hard because it's my hometown, is Erie, Pennsylvania, which was $155,000 is the average median home. When you go back to there, when I grew up was heavy manufacturing. Everyone worked at either the locomotive plant or the paper plant, and did well. Then NAFTA came through when I was early on in high school or late middle school, and it just kind of gutted the whole city, and that's why they're in the position they're in now is because the income isn't there anymore.
Dave Burnett: They're having to reinvent themselves.
Ron Wieczorek: And all these cities on the list, that are the most depressed right now, with property values are places that you wouldn't want your kids to go to school in, or you wouldn't want to really call home. I'm not saying Erie is not somewhere you want to raise a family, because I was raised there, but probably not in 2019, as much as in 1978. But Youngstown, Ohio, Huntington, West Virginia, Binghamton, New York, these are all places that had, whether it was a rust belt, steel belt, heavy manufacturing, and are just a shell of themselves before. That's what we're seeing on these lists now, of being heavily depressed.
You talked about the $150,000 home that was available three, four years ago, just isn't feasible, and isn't logical for a city that's thriving, and Boise's thriving. I mean, if you try to leave the office at 5:00, and you'll see that Boise's thriving, because there's a lot of... Even at 10:00 AM, I go to a meeting off-site and I'm like, I look around, I was like, what do people do for a living? Why is there traffic right now? Go ahead.
Dave Burnett: No, I was just going to say in part, our infrastructure has not kept up. As you look at some of these big subdivisions going in, and it's a two lane road going back and forth to them, our infrastructure is struggling to keep up with what's going on.
Ron Wieczorek: Right. No, it's absolutely true.
Dave Burnett: Yeah. So with that, it is. Now, let me go back to this other point, and I say this because I have kids and others that are at that point of trying to buy a home and trying to figure it out, and how to do this. Sometimes we don't... Okay, I'm going to say this carefully. We don't want to sacrifice to have to get what we want. I want to keep my $100 cell phone bill. I want to keep my $100 a month cable payment. Sometimes those have to go to the wayside to make the sacrifices to afford the loan for the home.
Ron Wieczorek: Yeah. I don't want to be doom and gloom, because it's not doom and gloom. We're talking about national numbers, and I'm going to get to your point in a second just because I feel I have to talk about these numbers. In the United States, the average median income of buyers is $79,900, so it's almost $80,000, that's household income. That's not $200,000. You don't have to be wealthy or top 1% to get into a home. And the median income of renters is a little under $39,000, so that's not a huge number when you're talking about a household number, so people can still get in.
But it's funny you should mention that having to give up some things, because that is the number one thing happening with, maybe not my generation, but the next generation, the millennials and below, is they're paying for convenience way, way too often. You look at their cell phone bills, you look at things like UberEats. I was in an Uber not too long ago, and I was just kind of... Every time I get in one they must hate me, because I quiz them, just because, well, I'm interested.
Thom Dallman: I do the exact same thing. I'm always interested about their... I always ask them one specific question, "What's the most unique ride that you've had to give to someone as far as the character of that person, or distance, or whatever it is?"
Ron Wieczorek: And they should be prepared for these questions, because I think a lot of people ask these questions.
Thom Dallman: Exactly.
Ron Wieczorek: I go more into the economics of it, and I'm like, "Do you have repeat customers? How often do you see people?" I know that there's this, you can order food, and he's like, "You'd be surprised how many people will pay me to bring them Taco Bell, or whatever. It's something that's so menial-
Thom Dallman: Hopefully... I'm sorry.
Ron Wieczorek: What's that?
Thom Dallman: How lazy to not just jump in your car and just go run down to Taco Bell.
Ron Wieczorek: Now, I've had those mornings, when I was single.
Thom Dallman: I know about food delivery.
Ron Wieczorek: Exactly. But it's not people that are in that like, I'm talking, power lawyers, that don't have any time, like, "Bring my meal. I'm too swamped to go get a meal." I'm not talking about somebody that makes $15, $16 bucks an hour, and that's what they're seeing a lot of, just paying for convenience. It's to your point, you really have to start skimping on some of those things, and really analyze your budget where you can cut costs, and if you can cut four or five things that are really just frill, and you'd be surprised how much money you put back in your pocket, that can go to building your wealth.
Dave Burnett: Exactly. I guess that all comes down to financial discipline and disciplining yourself. But Ron, let me ask you this, with the Flagstar Bank, which by the way, equal opportunity lender, I need to sneak that in there on you. If somebody wants some counsel to sit down and say, "Here's where I'm at. I really would like to get into an entry level home," can they sit down with you guys, and kind of say, all right... I don't mean you want to sit down and do their budget for them.
Ron Wieczorek: Right.
Dave Burnett: But to sit down and look at it realistically and say, "Here's where you're at, and here's what can happen."
Ron Wieczorek: Well, I do both. I do help with budgets as well, just because I wasn't there too long ago, and everyone has a budget. But yeah, I sit down all the time. I'm not going to criticize where the money's going, but I know what their income looks like, and I know what their debts look like, and I say, "We can really make this happen." But that's what I do everyday, is mortgage advisor. It's morphed from being loan officers to mortgage advisor, and absolutely.
Dave Burnett: Because now really is the time. If you are not into a home, don't sit here a year from now, and go, "Why didn't I do it a year ago?" Now's the time to do it.
Ron Wieczorek: Absolutely.
Dave Burnett: Rates are good. You know?
Ron Wieczorek: Rates are great, Dave. That's another segment, but it's the feds talking about moving them down. All we've talked about was increasing, increasing, increasing, and now we were supposed to get rate increases this year, and now we're looking at maybe one to two decreases. I see you looking at the time, go ahead.
Dave Burnett: Yeah, I am. I wish we could go on because if that happens-
Thom Dallman: That's a whole other segment.
Dave Burnett: That look out, here it comes. Everything's going to heat up again, I mean, the bottom line. Ron, if somebody wants to get hold of you, how do they do it?
Ron Wieczorek: My cell phone's always on me. It's a 208-869-9154.
Dave Burnett: Very good. Flagstar, of course, one of the sponsors of the Idaho Real Estate Buzz, along with the folks at Core Group Realty at EXP. CoreGroupRealty.com, that's 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, also an associate broker at Core Group Realty at EXP. CoreGroupRealty.com, the website. 208-933-7777. That's a phone number for you to call. Now Thom, we talk about different things at times, and sometimes I have to check you.
Thom Dallman: Yeah.
Dave Burnett: Because you work in the real estate business day in and day out, so there are terms that it's just second nature to you. It's like, "What do you mean you don't know what that means?" One of those terms that you hear when you go to sell a house is the word staging.
Thom Dallman: Staging, yeah. Very common.
Dave Burnett: Which means more than let's just clean this dump up and cut the yard.
Thom Dallman: Right.
Dave Burnett: I mean, there's more to it, but explain a little bit about what staging is and how important that is.
Thom Dallman: Oh my gosh. Staging is one of the most important parts of selling a house. Staging basically is going into a house and pulling it and making it presentable so that as a buyer comes through, they can envision themselves in the house, and the flow goes naturally and so forth. It's really a consultation that either a real estate agent or they bring a consultant in, sit down with the seller and help them make sure they understand, take those personal photos off the wall. Let's move this furniture around. I had the opportunity to do that with one of my clients that we listed this weekend where we went through and I specifically said, "Remove this big dish rack or dish ..."
Dave Burnett: Display?
Thom Dallman: Display, yeah. Let's pack it up and put it in the garage. Let's clear out some of this stuff so that the room feels bigger, rooms feel bigger. Because they are big room, but when you have big giant furniture in there, makes it feel small. We re-arranged some of the furniture. Told him to paint a few of the walls, things like that. The point of it is to create an emotional connection with the buyers, because you want the buyers to be able to get emotionally connected with it and see themselves in the home, and not see it as someone else's home.
Dave Burnett: You talked about removing pictures. I mean, those pictures of Grandma and Aunt Tilly, those are kind of near and dear to me.
Thom Dallman: I know. It's the hardest thing. It's the hard thing for sellers to do is to take down the family photos. Once again, it's super important because you want the buyers to see themselves in it. If they feel like they're intruding, they're less likely to put in an offer. There's actually a report that was just done by NAR, the National Association of Realtors. That they actually consulted with hundreds of agents and talked to them about staging and the importance of it. I'm to happy to say 83% of the agents said that staging makes it easier for the buyers to view the property as their future home.
Dave Burnett: Only 83?
Thom Dallman: Yeah. I'm a little bit surprised by that. I thought that would be higher.
Dave Burnett: Makes you wonder about that other 17%.
Thom Dallman: Exactly. It also went on to talk about a little bit about time, the time on the marketplace. 53% of the agents said that the staging that has happened in homes has decreased the amount of time that it sat on the market in their view point. Shortened the time that it takes to get offers because once again people can see themselves in it, and they will tend to write to more offers and stuff. It just keeps going back to the whole, it's all about that buyer expectation and what the buyers wanting to see when they come in the house. They want to be able to see their ... bringing up their kids in this house. Or, if they're retiring, they want to see being able to relax and sit down in the back patio and drink wine and stuff like that.
There was an interesting little caveat as part of this too, is that they did a survey on buyers expectations from houses that they see, go out and see, versus homes that they've seen on TV. It's interesting to see that 20% of the buyers are disappointed by how homes looked when they're out looking at homes compared to what they see on TV, and what is represented on TV and the home buying process. Because on TV, those HTVT, HGTV shows and stuff like that, they make it look so easy to buy a house. You go look at three houses, you pick one, you put an offer in. All of a sudden, you're moving in. That's not the way the process goes.
Dave Burnett: That's funny.
Thom Dallman: Yeah, yeah. I thought that was an interesting little caveat to that, that story line. They also talked a little bit about what rooms are the most important to people.
Dave Burnett: When it comes to staging.
Thom Dallman: When it comes to staging, yeah. 40% said that the living room is the most important room. I would have leaned more towards the master.
Dave Burnett: I would have too. I thought for sure you were going to say the master bedroom.
Thom Dallman: Yeah. I'm always like, "Make sure that master is spotless. Make sure your bathroom is updated and stuff." This is 47% of the people surveyed said that the living room is most important. Then 42% said master, and then 35% said the kitchen. It is the three main rooms that I anticipated. I just figured the living room and the master would be switched.
Dave Burnett: In thinking about it though, when you if you get a phone call. You're living at home, you get a phone call, "Hey, Dave. Hey, we're in town. we're going to stop on by real quick. Is that okay?" Everything goes in the master bedroom. We close the door. I mean, all the clutter and everything. That all goes there. We clean up the living room, clean up the kitchen. We don't have time for the bedroom. Close the door. In some ways, I think maybe people are very similar when it comes to staging the house. It's like okay well, the living room is ... that is the room.
Thom Dallman: That is the room that everybody hangs on in.
Dave Burnett: You talked about removing items out of it too, make it look more spacious. Which by the way, all you have to do is ... We put new flooring down in our master bedroom here a year ago. I was stunned how big it was once all the furniture was out there. Right?
Thom Dallman: This is a really big room.
Dave Burnett: I didn't realize it was so big. It may be that-
Thom Dallman: Large furniture.
Dave Burnett: ... overstuffed chair, the recliner that may need to go away. Are you as a real estate agent, what's the ideal situation when you come to a client and say, "Okay, here's what we need to do." Or, maybe I should say it this way: How often does that stuff really get done? If you give me a punch list of I've got 10 things I need you do, how often that me as a client do all 10 things?
Thom Dallman: For all my former clients, please don't be mad at me, but I would say probably about 25% of the time it gets done.
Dave Burnett: Really?
Thom Dallman: Yeah. I would say that there's ... By that, I mean not everything gets done.
Dave Burnett: Some does.
Thom Dallman: Yeah, about 25%. 25% of the people will actually do everything on that list and get everything completed. Majority of sellers will be ... you will cherry pick the things that they feel are more important. That's why I like to say, "If you're going to do anything, here's the things that you really need to do. Then here are some additional things that if you want to increase your ..."
Dave Burnett: You should do.
Thom Dallman: Yeah. Increase the possibility of getting more money, you should do this.
Dave Burnett: You had a key phrase there.
Thom Dallman: Yeah.
Dave Burnett: The possibility of getting more money.
Thom Dallman: Yeah. Oh gosh.
Dave Burnett: For me as a seller, that's something for me to pay attention.
Thom Dallman: Yeah. Here's an interesting stat that they also had on this report from National Association of Realtors. 22% of the agents, seller agents, said that they got 1% to 5% more dollar value offered from buyers because of the staging.
Dave Burnett: That's significant.
Thom Dallman: Yeah. 17% reported an increase of up 6% to 10%, where 5% reported an increase of 11% to 5%. 2% reported an increase of 16% to 20%, all from staging.
Dave Burnett: If a seller is going, "Gosh, I hate paying that real estate commission." Just by listening to your agent and staging, you've more than paid for that.
Thom Dallman: Exactly, exactly.
Dave Burnett: That's how key that is.
Thom Dallman: Exactly.
Dave Burnett: A term that we all kind go, okay staging. All right. Does that just mean clean this place up? No. It does mean more than that.
Thom Dallman: Yeah, it means re-arranging furniture. It means, like I said, de-cluttering, packing things up and putting it in the garage or a storage unit if you have one. Just really clearing it out so it's very minimalist in your house. The key part too is that re-arranging furniture. I do that often, especially with rooms with big bulky furniture. Let's move this around so that-
Dave Burnett: The difference between the way I want to live in it comfortably and the way we want we want to show it.
Thom Dallman: Exactly, exactly.
Dave Burnett: May have to put up with not having it exact like what I want.
Thom Dallman: Yup.
Dave Burnett: Darn it.
Thom Dallman: Yup.
Dave Burnett: It is important to listen to your agent. If you would like to talk to an agent about staging, maybe you're getting ready to sell your home. Which by the way, with inventory the way it is, selling right now is really, I don't want to say easy, but it's easier now because there's not a lot of inventory-
Thom Dallman: There's not a lot of inventory there. We've mentioned in the ... especially in the entry level homes, a lot of people are sitting on equity. I don't want to throw that fear of crashes or anything, but you just don't know what the next year is going to bring, and stuff like that. We're already seeing that slowdown in the marketplace as far as sales. Sales are actually down from what they were this time last year and stuff. Yeah. If you're thinking about selling in the next year or two, you might want to think about doing it sooner than later just to get behind-
Dave Burnett: If you're sitting on an entry level home looking to make that move up, now is the time to do it.
Thom Dallman: Now is a great time to do it.
Dave Burnett: Thom, how do they get hold of you at Core Group Realty at EXP if they want more information?
Thom Dallman: They can call us at 208-933-7777 number. You can email us, email@example.com, or you can just go to our website, CoreGroupRealty.com. We have a Contact Us page that you can just fill out and send us whatever question you have.
Dave Burnett: Perfect. If staging is a question you have questions about, Thom and his staff are there to help take care of you. CoreGroupRealty.com is a website. Core Group Realty at EXP, one of the sponsors of the Idaho Real Estate Buzz, along with the folks at Flagstar Bank. 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. CoreGroupRealty.com, the website, (208) 933-7777, that's the phone number for you to call anytime to get more information about Core Group, about the website, about what's going on and to contact the agents, including Thom at the Core Group Realty.
Thom Dallman: Yeah, exactly.
Dave Burnett: It's interesting. I know you... I want to talk a little bit about Core Group Realty at EXP.
Thom Dallman: I know.
Dave Burnett: When you came to the area, you were involved in real estate. It's been... Next year will be 10 years for Core Group.
Thom Dallman: For Core Group, yeah.
Dave Burnett: You came... Originally, were you a house flipper? What were you doing when you first came?
Thom Dallman: Well, my previous life as I like to call it, technically was in human resources, when I moved into town. I was the director of human resources for Smokey Mountain Pizza And Pasta, a local restaurant chain. I did that for about three years when I first moved here in 2002. And then from there I left to get into house flipping, like you said. I wasn't a licensed realtor, but I just... I would help people out of short sales situations where they were upside down in their home, distressed situations, and tried to help them get the home sold before it went into foreclosure. And then on top of that, I would also buy homes and flip them and rehab them and just do that whole nine yards, just like you see on HD TV.
Dave Burnett: Which is where you found out that the TV shows are not like reality.
Thom Dallman: Nope. No.
Dave Burnett: It doesn't happen in an hour.
Thom Dallman: Exactly, exactly. Then in, it was 2009 is when I got licensed. I've been licensed now 10 years, but I like to say that I've been in the real estate business for 13, 14 years, because the flipping and the short sales and stuff like that.
But in 2009 I decided to kinda-
Dave Burnett: Knocks.
Thom Dallman: Yeah, right, I did. In 2009 I decided to kind of get away from doing the flips and all that stuff, even though we were in a crash and that was a great time to actually buy houses and stuff like that. I wanted to focus more of my energy, because we were crashing on helping people in these distressed situations and stuff. It became really important to me to be able to help as a licensed real estate agent, to be able to negotiate with being on short sales and stuff like that.
And so I got my license, and my partner and I started a team over at RE/MAX. And then in 2010 we realized that we had a unique internet presence that we had been working on for a year and it was starting to really build. And so we started chatting with some friends of ours and came to the conclusion that we could combine our resources, 'cause they were kind of helping manage the team as well at another brokerage. We thought, "Let's join forces and create our own brokerage." In June of 2010, next year will be our 10 year anniversary for CORE Group. In June of 2010 we basically opened up Core Group Realty.
Dave Burnett: Yep.
Thom Dallman: It was a little office down in Eagle.
Dave Burnett: Now, I know when I started doing this program, and I can't even remember, I was working with your partner, business partner Gabe Cordova.
Thom Dallman: Yeah.
Dave Burnett: And helping him, he's expanded off on-
Thom Dallman: Exactly.
Dave Burnett: Other avenues at this point.
Thom Dallman: Other avenues.
Dave Burnett: But Core Group Realty continued to grow and to flourish even through what I consider very difficult times-
Thom Dallman: Yeah.
Dave Burnett: Economically.
Thom Dallman: Well, if you think that the bottom of the market was in 2011, was technically the worst time to be a real estate agent, in fact so much that at the height of the market there were 5,000 some real estate agents in the marketplace, and by 2011 I think it dropped down to 1,600-
Dave Burnett: Wow.
Thom Dallman: Real estate agents. Yeah. So many people had to leave the industry just because they couldn't make it happen. They couldn't manage it and stuff like that.
Dave Burnett: It's funny, I was just... The other day I was on just offloading feather road, there's a street in a subdivision. I remember when things were spiraling down. There were homes, we're talking at that time $225,000 homes, that were started and just stopped.
Thom Dallman: Just stops, yeah.
Dave Burnett: Just stopped. I remember thinking, "They're going to have to rebuild half of that whenever it come around."
Thom Dallman: Oh yeah. Yeah.
Dave Burnett: Now those are big flourishing subjects.
Thom Dallman: Exactly. Well, the house that I currently live in was one of those houses...
Dave Burnett: Was it?
Thom Dallman: That had been started during the height of everything, the crash happened and then it just was kind of a shell sitting there. We ran across it and just fell in love with it and so we're able to track down the owners and make an offer and buy it and finish it out. That was in 2009 as well.
Dave Burnett: I'm going to hit you with a question of left field. You don't know why I was going to ask you this question, but during that time, when it was difficult times, what would you say you learned out of those difficult times that you can carry with you and say, "You know what, I learned that then and it helps me today."
Thom Dallman: I think the biggest thing that we learned actually is... It's our motto, client oriented real estate. That's where CORE came from, is Client Oriented Real Estate. We learn that if you are just there to provide service, it'll happen. It'll all happen. You don't have to constantly try to get people to go buy a house. It'll happen if when it's ready for them and stuff like that. Just be there for them to answer questions, and that's why we do this radio show. That's why we like to get out into the public and educate people. We participate in community events so that we can be out there answering questions about the home buying process and stuff like that. 'Cause to us, it's about nurturing the clients. Whether you are buying a $30,000 manufactured home or you're buying a $1 million mansion. To us, you're all the same. Everybody is the same, needs to be treated with respect and with service. Not trying to force you into a home.
Dave Burnett: Not just signing a contract.
Thom Dallman: Exactly, exactly. I think that's the one thing that we learned, is to be humble and to appreciate every client for themselves and treat them with the respect they need, and hey, if you have bad credit and it's two years out, that's cool, let's make sure we stay in touch and keep looking at the market. I'll keep you updated on it and stuff like that and touch base with you every once in a while to see how the credit repair is going, stuff like that. To us it's the relationships, it's the building the relationships that we learned during that time frame. Especially with my experience in helping people in short sales and distress situations. You were going into these homes that people thought they were going to be in there forever, and here they are losing them because they lost jobs.
Dave Burnett: - falling apart.
Thom Dallman: Yeah, things started falling apart. It really humbled me and taught me how to just be there for for our clients.
Dave Burnett: One of the things that, as as we have done this show, and I say this on a regular basis, but I know you keep it in mind and I know some of your keeping in mind that for me, as a customer, I do this buying a home thing once in a while.
Thom Dallman: Yep.
Dave Burnett: You guys do it day in, day in, day out, but I think your and than the fact that the average person coming through the doors is a CORE, it's not something they do day in and day out.
Thom Dallman: It's not, yeah.
Dave Burnett: It's a scary situation in a sense.
Thom Dallman: Yeah. Yeah, the people that I'm helping right now, they ... I have some clients that I'm helping that they bought their house 10 years ago. Last time they did a transaction, it was their first and last time they did a transaction. They never anticipated that they would ever think about buying a house. This was going to be their forever house. They've grown in the fam, they've had a couple of kids, they're growing, decided that they need more room and what not. Now that it's starting all over again, they're like, "We can't remember what we did 10 years ago. What's earnest money? Oh wait. Oh, wait, we had to come up with up with-"
Dave Burnett: It's a different words. It's a different world-
Thom Dallman: Yeah, we had to come up for money for inspections. Yeah, it's... Yeah, people live in their homes on average 10 years right now, is what the average home ownership is. A lot changes in 10 years.
Dave Burnett: Okay, so CORE, you advanced and you progress through the recession, they start rebounding, and where did CORE go from there?
Thom Dallman: Well, we kinda grew as a company, and then about 2016 was when you mentioned our partner Gabe decided to go off on new ventures. He was wanting to... He had an opportunity that he just couldn't pass up and wanted to kind of seize it. And so that left me and the other two owners kind of debating on what to do and they had to kind of gotten to a point where they just kind of wanted to do a family brokerage and just kinda be with their family. So I ended up buying them out of CORE Group and taking over the company myself and running it myself.
Dave Burnett: When you say buying brokers.
Thom Dallman: Yeah, I got my broker's license, I became the designated broker, started running CORE Group myself and managing the agents and stuff like that. Once again, training them, being their present for them, supervising them, making sure that they're treating our clients the way we want them, the way they should be treated. And then, yeah, pretty much did that up until September of last year when we decided to combine CORE Group with EXP Realty and merge into EXP Realty, which now afforded us the... We have now the availability of agents, not only across the US, but now we're in three providences 00:10:07] in Canada. They were about to open up two more providences. And the last shareholders meeting that I went to, they just announced also that we're looking at expansion into the UK and Australia. So I said, "Sign me up, I'll go to Australia and help you guys open that up." It's one of my bucket list places to go.
Dave Burnett: That's great.
Thom Dallman: But yeah, they're working on expansion into other areas because, EXP has such a unique proposition in the marketplace for a virtual brokerage, instead of the traditional brick and mortar brokerages that you see around. It affords the flexibility of agents to be able to work from wherever they want and stuff like that, and still be connected and still be connected with agents over around the US that you can brainstorm with if something happens. "Hey, what's the best practice for dealing with this? I have these people, should I make an offer? Should I make it look better? What can we do?" Now instead of just our small group, we are now connected to, I think we're at almost 20,000, I think we're going to reach 20,000 agents...
Dave Burnett: Wow.
Thom Dallman: By the end of this year.
Dave Burnett: As we... Let me put a bow on all of this to say that if you are in position, if you're in the marketplace right now to buy or sell your home, in the past almost 10 years Core Group has now established itself as a member of the community. There's a lot of good real estate agencies in town.
Thom Dallman: Yeah.
Dave Burnett: Really, Thom, I know you are a firm believer that make sure you get a credible real estate agent, interview them, talk to them, make sure the company is a good fit, of which when you're doing that interviewing, call the folks at CORE.
Thom Dallman: Yeah.
Dave Burnett: Give them a call.
Thom Dallman: Love the opportunity.
Dave Burnett: Give them a chance to kind of tell you what they're about and what's unique about Core Group Realty at EXP.
Thom Dallman: Exactly.
Dave Burnett: If somebody wants to get a hold of you Thom, how do they do it?
Thom Dallman: Give us a call, (208) 933-7777. Send an email, firstname.lastname@example.org or just go to our website, CoreGroupRealty.com and send us a message through there.
Dave Burnett: Perfect. Flagstar Bank, one of the sponsors of the Idaho Real Estate Buzz, along with the folks at Core Group Realty at EXP. Find out why they say you get more with Core.