We’ve all heard the saying, “you get what you pay for”, today Thom and Dave talk about how true it really is when it comes to home projects! You will want to tune in to hear about our current real estate market and find out from Ron Wieczorek what triggers people’s home buying decisions.

Segment 1

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. That is a website. The phone number to call, 208-933-7777. Keep dialing those sevens-

Thom Dallman: Just dialing those sevens.

Dave Burnett: ... and somebody will pick up. Another week and another great time right now. Interest rates are really low. Inventory? It's a bit of a struggle for inventory, but there are homes out there to buy.

Thom Dallman: It's quite a bit of a struggle, especially in those price points under $400,000 right now. Everything under that is just ... It's hard to find sometimes for our clients, and we're still getting in ... Just this last week, some of my agents were talking about how they got into a bidding war that happens to be on the same house that actually went about $30,000 over the list price.

Their clients had put in about $10,000 over. The house sold $30,000 with some cash buyer that just came up and said, We're willing to pay this. We'll pay this much money over the list price for it."

Dave Burnett: But you know, if you're going to go into battle trying to get a home, it's always good to go in with somebody experienced. Somebody who knows where they're going and can pull out all the tricks out of the bag.

Thom Dallman: Exactly. That's for sure.

Dave Burnett: A good reason to give the folks at Core Group Realty at EXP a call. Speaking of those folks that can pull tricks out of their hat-

Thom Dallman: We've got Shawna Schnabel in the house tonight, or today.

Shawna Schnabel: Hello, everyone.

Thom Dallman: Shawna's here to actually talk about one of her listings that she's got going this week.

Dave Burnett: What you got?

Shawna Schnabel: We got a new one. Speaking of that tight inventory in the lower price range, this is a lovely little home out in Kuna.

Thom Dallman: Love that community.

Shawna Schnabel: It's a nice subdivision there, in Brandywine subdivision. The house is 1428 square feet, three bedrooms, split bedroom design. Does have a lovely little bonus room as well. The current owner has gone through and he's put in new stainless steel sinks, several of the new stainless steel faucets, laminate flooring throughout the main living area. So, it's just really been updated quite nicely and it's just got a beautiful backyard; great big cement patio and then they have a separate gazebo which will stay, so that's all set up. It also has a good sized storage building out back. Has RV parking.

Thom Dallman: Oh, my gosh.

Shawna Schnabel: So this house checks all the boxes. It also has an open field right behind it so you are not looking at your neighbor right behind you.

Thom Dallman: Nice. At least it's an open field for now.

Shawna Schnabel: It's an open field for now. Of course, we can't guarantee anything, but it's my understanding that that property just belongs to an individual back there, so yeah. You just don't know, but for now, it's a nice, open field.

Thom Dallman: Yeah, for sure. That's awesome.

Shawna Schnabel: Mm-hmm (affirmative).

Dave Burnett: So what's the price on this home?

Thom Dallman: Yeah?

Shawna Schnabel: So, we priced this to get it sold, so we priced this at $240,000.

Thom Dallman: $240,000?

Shawna Schnabel: Yeah.

Thom Dallman: Nice.

Shawna Schnabel: So that is in that super tough price range to find.

Dave Burnett: So, here's a warning.

Shawna Schnabel: There's a warning.

Dave Burnett: Don't wait.

Shawna Schnabel: Don't wait.

Thom Dallman: Don't wait. If you are in that price point and are interested in the Kuna community, let us know right away so we can get you in and take a look at it and get you in there.

Shawna Schnabel: Yep, yep. It's really, really a nice little home.

Thom Dallman: Do we have an address on that?

Shawna Schnabel: That is at 1180 Penelope.

Thom Dallman: Hmm, Penelope.

Shawna Schnabel: Penelope in Kuna.

Thom Dallman: In Kuna.

Shawna Schnabel: Mm-hmm (affirmative).

Thom Dallman: Very cool.

Dave Burnett: You know, Kuna is one of those communities ... We've talked about this in the past, that if you don't get out there, it has grown. There's so many other things that ... I mean, Kuna used to be just a sleepy little town and really if you wanted to get anything, do anything, you had to come into Boise-

Thom Dallman: Drive into town, yep.

Dave Burnett: Not so anymore.

Shawna Schnabel: No, not at all.

Thom Dallman: No, they are starting to get all kinds of great little shops and stuff, and grocery stores.

Dave Burnett: Restaurants.

Thom Dallman: They've just got everything. Yeah, restaurants going on right now. You can pretty much stay out there and not have to even come into town at all.

Dave Burnett: And there is good easy access to the freeway, so if you work somewhere else, you can get there.

Thom Dallman: Exactly.

Dave Burnett: So that's a big deal.

Thom Dallman: Exactly.

Dave Burnett: What's that address again, Shawna?

Shawna Schnabel: 1180 Penelope.

Dave Burnett: Okay.

Thom Dallman: Cool, cool.

Dave Burnett: Penelope is the place to go for that.

Thom Dallman: Exactly.

Dave Burnett: You know, when it comes to houses, that $240,000 price range, that is becoming a rare creature isn't it, Thom?

Thom Dallman: It is. Especially in June, our median price point jumped up yet again. We keep getting our median price point climbing up. It came in at $354,000, was our median price point for June. Up 10% from same time last year. Homes ... And that's for Ada County.

Yeah, home prices are continuing to climb. That tight inventory is just making it so hard for people to find, so people are getting more money for their homes. It's interesting actually, because I assumed that we would be in a slowdown by now, and I think I've mentioned that probably at the beginning of the year that we'll see the home prices slow down and throughout the year-

Dave Burnett: But if you remember right-

Thom Dallman: ... but I'm being proven wrong.

Dave Burnett: At the start of the year, they were talking about oh, they'll probably be interest bump-ups-

Thom Dallman: Interest rate hikes-

Dave Burnett: ... And spikes, and that's not happening.

Thom Dallman: Exactly, exactly. I just recently read an article with some of the big experts out there who are doing their predictions on what they think is going to happen through 2019 and through 2020 and they're all predicting it to continue to go up. Not as rapidly, but between 2.8% all the way up to 4.7 some of them are predicting. For now until the end of the year and then going into 2020, they're predicting between 2.9 and 3.5% increases in home prices consecutively.

All the big guys; the Mortgage Bankers Association, Zelman & Associates, Freddie Mac, National Association of Realtors, Fannie Mae, all these organizations have put out their predictions in this report and all reporting we're just going to keep going through 2020. Home prices are going to continue to rise, so ...

Dave Burnett: Well, it truly is ... Okay. I'm going to say it's a great time to buy a home.

Thom Dallman: Mm-hmm (affirmative).

Dave Burnett: Probably a better time to buy a home about four years ago, but you don't want to miss out on the bandwagon-

Thom Dallman: Yeah, because-

Dave Burnett: ... and you could still get in, especially like Shawna has a house at $240,000. You buy that, the equity should just continue to increase in the value of that home.

Thom Dallman: Exactly, exactly. And you don't want to wait and procrastinate in the hopes that it'll go down because we don't know what the interest rates are going to do if you wait.

Dave Burnett: No.

Thom Dallman: There's no predictions on ... I'm sure there's predictions out there, but there's no telling what interest rates will do, and just a one percent increase can cost you so much money over the lifetime of a loan, so you want to get in while the rates are still as low as can be, so ...

Dave Burnett: At Core Group, Thom, I assume you have agents that ... Do they specialize in areas like if I want some rural area, do you have somebody that really deals in that, or is it wide and diverse?

Thom Dallman: We're wide and diverse. I do have a couple of agents ... I have an agent that lives out in Kuna, so if someone specifically wanted the Kuna community, we could direct them to her. We have an agent that lives out in Marsing and so, we do have agents that live in specific areas outside of Boise and Meridian that we can definitely direct you to if you wanted to work with someone in that area, but all of our agents are familiar with all the areas and know everything and have access to everything.

Dave Burnett: I know at Core, it really is a team concept that if somebody has a question, they can come to Shawna and say, "Shawna, have you ever dealt with this?"

Thom Dallman: Oh, yeah.

Shawna Schnabel: Mm-hmm (affirmative).

Thom Dallman: Oh, yeah.

Dave Burnett: And so it is a team concept.

Thom Dallman: Oh, yeah.

Shawna Schnabel: Yeah, absolutely.

Thom Dallman: We have a team text thread that people post a lot of questions on and get their answers from the rest of the team and stuff, so we're always, every week, talking about the new things that are happening and our contract's just changed. Real Estate Commission changed the contracts. I guess, our MLS or whatnot, so we just went through that and we've reviewed all the changes to our contracts and made sure everybody was familiar with what's been changed, so it's very important for us to have that camaraderie and have that ability to lean on each other.

Dave Burnett: And I will give the warning right now. We're in mid-July. If you're thinking about moving before the start of the school year, you need to get on it.

Thom Dallman: You need to get on it. For sure.

Dave Burnett: To give your agent a chance to look around, see what you want, and to find out really what you want, where you want to be, and then get that search started.

Thom Dallman: Exactly, exactly.

Dave Burnett: So it's a good thing to do. How do you get a hold of the folks at Core, Thom?

Thom Dallman: You give us a call, 208-933-7777. You can go to CoreGroupRealty.com and contact us through there. There's a contact us page. Or you can just email me at info@coregrouprealty.com. That will come to me and I can answer your questions any of those ways.

Dave Burnett: And Shawna, they can reach you there as well if they have interest in that home in Kuna?

Shawna Schnabel: Absolutely. They can call the main direct number or they can call me direct. My cell phone is 208-412-6799.

Dave Burnett: All right. Thom, Shawna, thank you so much. We're going to talk to Ron Wieczorek, talk a little bit about millennials and why they're choosing where to live. We'll do that as we continue on the Idaho Real Estate Buzz being brought to you by the folks at Flagstar Bank and of course, Core Group Realty at EXP. Do this. Find out why they say you get more with Core.

Segment 2

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. That is the website to go to. 208-933-7777. That is the phone number for you to call to get all of the information you need. -we talk to Ron Wieczorek with Flagstar Bank-

Ron Wieczorek: Mm-hmm (affirmative).

Dave Burnett: ... each and every week. This week, we're going to continue on the millennial theme, because you've found, I guess what would be-

Ron Wieczorek: An interesting fact.

Dave Burnett: ... a common thread as to what's working and what's not working.

Ron Wieczorek: Mm-hmm (affirmative). Well, what's working and what's not working, really working, and what goes into the decision making. And not just millennials, but what I'll lead off with... And this may go under the surprise, surprise category... But, millennials without college diplomas are having a harder time entering the housing market. And aside from their standing in the labor market... And when I say "their," if you don't have a college degree, then it's harder to get a higher-paying job, that's...

Dave Burnett: Mm-hmm (affirmative).

Ron Wieczorek: You know. There's a lot of trades out there that are high paying jobs, or relatively high paying jobs, that make up some of that weight. But for the most part, if you don't have a college degree, you're not entering those higher wage or potentially higher wage incomes. So, the cost of living independently and student loans affect some of these numbers-

Thom Dallman: I was going to say, I would have expected that a college student would have a harder time, because they have the student loans that they have to deal with. You know, being offset by the higher salaries, but they have the student loans that they have to pay, so their expenses are higher.

Ron Wieczorek: And we're seeing even student loans with folks that don't have a college degree. Just because you don't have a degree-

Thom Dallman: Mm-hmm (affirmative). That's true.

Ron Wieczorek: ... doesn't mean that you didn't start to go to college, or accumulate some of that debt. So, that mounts to the problem.

Dave Burnett: So that's a person with a double whammy.

Ron Wieczorek: Yeah.

Thom Dallman: Right?

Ron Wieczorek: That mounts on that problem. So, you know. There was a Pew analysis that found less educated young adults are more likely to live with their parents than millennials who completed at least a bachelor's degree. And we've talked about it on the show before, that 20% of... Or it's near 20% of millennials still live with their parents.

Dave Burnett: Mm-hmm (affirmative).

Ron Wieczorek: And they've kind of joked that, basement-

Dave Burnett: Basement, yeah. It is true.

Ron Wieczorek: It is true.

Thom Dallman: Yeah.

Ron Wieczorek: And the numbers are larger than it was just in 2016. There was only... Well, in 2016, about 10% lived at home that had college degrees, and that was up from 7% of Gen Xer's... That's more my generation... in 2000. So when you're comparing the generations, of who's spending a little bit more time at home before they get into the housing market, and then it only gets amplified. It's over 26% of millennials, with only a high school diploma.

Thom Dallman: That's interesting.

Dave Burnett: Let me clarify something here in what you've said, though. For you at Flagstar, in your business, it's what's you're making. It's your income that will qualify you or not, not whether you have a sheepskin or not. Correct?

Ron Wieczorek: Right. Yeah. Absolutely.

Dave Burnett: Okay. But it's just statistically, those who have a diploma traditionally have higher paying jobs.

Ron Wieczorek: Traditionally do, and traditionally will enter the housing market a little ahead of time than maybe someone that doesn't.

Dave Burnett: Okay. But if I'm an electrician without a college degree, but with my journeyman and making good money, I'm good.

Ron Wieczorek: Oh, you're ideal. Yeah. That's a great career, and there's a shortage of... Extreme shortage right now. I can go on about how much of a shortage there is in labor in those type of areas. Trades do very well right now, just because there's a lack of that-

... being preached. So I talk about the college degrees, and I'm saying that these, the numbers are spewing out. But it's not like if you don't go to college, that you're taking a trade route. If more people took a trade route instead of the college degree, I think you would see those numbers maybe tip to that balance more, because they wouldn't have that student loan debt. So, there is definitely a... There's a tradeoff for not getting the degree, but if you go into a career that has that kind of potential, without needing a degree, the upside is pretty good, too.

Dave Burnett: So, the struggle would come for those who are working like a retail job. They're a clerk at a store, they're making 10 bucks an hour. That's a more difficult position.

Ron Wieczorek: That's exactly right.

Dave Burnett: Okay.

Ron Wieczorek: And that's what we're seeing, more than someone going into a trade. Because you'll never hear me say anything negative about those kind of industries, because those are still extremely lucrative. And especially in areas like Boise, or really anywhere. The shortage is nationwide. But especially areas where we need to build more, and they're looking to build more, and it's just hard to find that good work, that has that experience, or has that extra level of training, and/or education, and/or experience to get the job done right. And quite frankly, be dependable. Right?

Dave Burnett: Mm-hmm (affirmative). Yeah.

Ron Wieczorek: So...

Dave Burnett: It is difficult. I mean, I can share my own personal experience. It's taken me... And I know Thom has had something similar. It's taken me like two months to find somebody to do a backyard makeover for us.

Thom Dallman: Oh, yeah. Oh, yeah.

Dave Burnett: They'll come with extremely ridiculous bids, because they really don't want the job, or they don't call back.

Thom Dallman: Mm-hmm (affirmative). Or they just don't call back at all.

Dave Burnett: Yup. Because they have higher paying things out there.

Ron Wieczorek: We're seeing a ton of that. Yeah. It's almost funny. If you get someone to respond right away to a request, you almost start to question. You know, "Wait. Hold on."

Thom Dallman: "What's wrong with you? Why are you not working?"

Ron Wieczorek: "You might not be good, if you're this responsive."

Dave Burnett: Exactly. But it is difficult, if you're trying to get some sort of fix-it around your house, or makeovers. It is real tough right now.

Thom Dallman: It is.

Ron Wieczorek: I'm going to switch gears a little bit now, to... So, that's that. It's probably age old. It's probably more now. We'll talk ad nauseum about student loan debt, and what that's doing for those that do have the degree or don't even have the degree, but maybe started. But, where are... So, now these millennials that are buying, where are they choosing to buy? What decisions are going... What-

Dave Burnett: What's important?

Ron Wieczorek: Yeah, right. What's important to them?

Thom Dallman: What's important to them?

Ron Wieczorek: And the one thing that I... I was reading about family proximity affecting Americans' decision to buy their homes.

Thom Dallman: So, is that to be close to their families?

Ron Wieczorek: It's funny you should ask-

Thom Dallman: Is that what you're saying there?

Ron Wieczorek: Well, they're talking about healthy boundaries.

Thom Dallman: Okay.

Ron Wieczorek: The overwhelming survey said, "We want a healthy boundary between us and our in-laws and/or parents, or whoever it might be."

Thom Dallman: You don't want to buy the house right across the street.

Ron Wieczorek: Yeah. So, 57% survey said there should be at least some driving distance between their place and where their in-laws live. There was an overwhelming majority said they do not like the plop-ins. They do not think that's a healthy boundary. And a lot of those stresses... I have an interesting little list that came up on the article, the top five stress points when dealing with their families. I'm going to let you guys guess a couple of these. So, when you're talking about living near your family, now your family's over, and they're coming over. What stresses people out, or what stresses maybe the spouse, versus the kid? What are the stressful points?

Dave Burnett: Okay. I would have to say number one in this day and age, politics.

Thom Dallman: Oh, politics.

Ron Wieczorek: Number two on the list. Hold on.

Thom Dallman: Okay. That's interesting.

Ron Wieczorek: Dealing with father, father-in-law, and opposite political views.

Dave Burnett: Okay.

Ron Wieczorek: So, that's a big one. You're on the right track. You know what I'm asking.

Dave Burnett: Okay.

Thom Dallman: Interesting. I was going to-

Dave Burnett: -shot here.

Thom Dallman: I was going to actually say... I don't know. Whenever my in-laws come over, I always get stressed out about how clean the house is, personally. But, cleanliness. You know, making sure that everything is put away and stuff.

Ron Wieczorek: Yeah, yeah. Mother, mother-in-law.

Thom Dallman: Mother and mother-in-law. Yeah.

Ron Wieczorek: And it says between... There's a slash there. So it's cooking with mother-in-law, or cleaning between mother-in-laws. And mother-in-laws are getting a lot of bad heat. Apparently, mother-in-laws are very clean. My mom... Yeah, but the number one... My parents live 2,600 miles away, and my wife still thinks that's too close.

Dave Burnett: Wow. That's pretty good space. That's a good buffer zone.

Ron Wieczorek: So, another one is road trip with parents or in-laws with no radio. I think that part bleeds in, that part-

Thom Dallman: Bleeds into that politics thing?

Ron Wieczorek: ... probably bleeds into that politics.

Thom Dallman: Yeah.

Ron Wieczorek: Being on the radio, I encourage you to put the radio on.

Thom Dallman: Yeah, exactly.

Dave Burnett: - family.

Ron Wieczorek: Living within five minutes of parents or in-laws. That was its own category of a stress, just to know that that's-

Dave Burnett: I'd go so far as to say this, Ron Wieczorek: I don't want my kids popping in, either.

Thom Dallman: It does go the other way.

Ron Wieczorek: We're not just picking on parents. I'm just saying, that's what goes into these lists. And so, now I'll pivot off that a little bit. One of the things that's really important now, for especially millennials or folks that are starting families, are school districts. So, 58% of parents are willing to pay a higher rent or mortgage, in order to live in an area that has better schools.

Dave Burnett: Mm-hmm (affirmative).

Thom Dallman: I see that.

Ron Wieczorek: Yeah, and it's a double-edged sword. So what's happening is, the decision to pay a higher price to live in a better school district is affecting the ability of 62% of parents surveyed to save for retirement, and/or their education needs for their children. So they're living in the school districts, and they're making... Like we've talked in the past, sacrifices.

Dave Burnett: Mm-hmm (affirmative).

Ron Wieczorek: So a lot of these sacrifices are happening, to live in those areas. It's a double-edged sword. The other half of that sword is, if so many people are making those sacrifices up front to live in these desired areas, on the back end, these homes are retaining their value or increasing in value at the same speed. So, maybe that benefit gets fleshed out at the end, if you do decide to sell. That that's not just throwing money away, and it is... Here in Boise, I hear people talk about bad versus school districts all the time. And Thom, you know more about this than I do, but I don't think we have really a bad, like what I consider a bad school district.

Dave Burnett: Yeah. That's what I was going to ask you that. Because here in Treasure Valley, I know Valley View, which is out in the county, out toward Canyon County, regarded as a very good school district, the Boise school. You know? I don't think I ever hear people say, "I don't want my kid in that school."

Thom Dallman: Yeah, right?

Dave Burnett: Perhaps it happens, but...

Ron Wieczorek: And I've heard people say that before, and sometimes it's based off lack of knowledge of that area, or maybe perceived notions they may have. And maybe it's just because I grew up in a part of the Northeast, that even before NAFTA, there was areas you just didn't go to. Right?

Dave Burnett: Mm-hmm (affirmative). Yeah.

Ron Wieczorek: And if I had to go to those school districts, it would be over my parents' dead body that I'm in one of those schools. So, there are bad school districts in... And when I'm talking bad school districts, there's a lot to go into that, right?

Dave Burnett: Yeah. It has to do with funding. It has to do-

Ron Wieczorek: Funding. Yeah, absolutely. The socioeconomic position of the family, and the areas. It all goes down to the money. So, that's what triggers a lot of this. It's not saying there's bad people in those schools, or bad teachers. It just has to do with where they're at. But I don't think that Treasure Valley... Even though there's some schools that are regarded as more desirable than others, I hesitate to say that there's bad schools. I don't see that.

Dave Burnett: Yeah. I have not heard of that, either. Ron, if somebody wants to get a hold of you to talk about getting a loan, about prequalifying... We talk about that all the time. How do they get a hold of you?

Ron Wieczorek: Best way is my cell phone, which is always on me. It's area code 208-869-9154.

Dave Burnett: Flagstar Bank, equal opportunity lender, of course, where you get a hold of Ron. And if you didn't get that number, you can always get it over at CoreGroupRealty.com. Find out why they say you get more with Core.

Segment 3

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, that is the website to go to. And really it's the company to go to. If you're looking to buy or sell your home, talk to the folks at Core, interview with them.

Thom Dallman: Talk to us.

Dave Burnett: Talk to them and that's really what you like to do.

Thom Dallman: Yeah. We always say that. Interview us so that we can get you in front of the right agent, make sure you have that trusted advisor that you know that you're going to be able to trust and we'll represent you correctly. Yeah.

Dave Burnett: Interesting, during the last commercial.

Thom Dallman: Mm-hmm (affirmative).

Dave Burnett: Ron, I don't want to say he threw a fit.

Thom Dallman: Yeah.

Dave Burnett: I won't say that, but he said, hey I had more to talk about.

Thom Dallman: He sure did.

Dave Burnett: When it came to why people are choosing, and why, you know.

Thom Dallman: Where they're choosing.

Dave Burnett: Millennials are choosing where to live. So we brought him back for another session.

Ron Wieczorek: You can see where I wore out the carpet from stomping my feet. Exactly.

Dave Burnett: We were talking in the last segment a little bit about things that... we got off on schools and really talked about schools and some of the other things. Why the millennials don't want to live close to family. You know, what is it called, comfort zone? Space?

Thom Dallman: Need their space.

Ron Wieczorek: I think I called it healthy boundaries.

Thom Dallman: The healthy boundaries, that's what it was, yes.

Dave Burnett: But there's more to it than that, there's things that are changing.

Ron Wieczorek: Yeah, there's a lot of things going in the decision making, whether it's millennials, or the next generation is Gen Z, we're starting to see a little bit... And that's 1997.

Dave Burnett: Mm-hmm (affirmative).

Ron Wieczorek: Birthdays. So that's not a big part of our business yet. But...

Dave Burnett: Will be.

Thom Dallman: Yep.

Ron Wieczorek: They're coming. They're coming in bigger droves than millennials because they're just outnumbered when it's all said and done, when the numbers are shaken out, there's just more of them.

Dave Burnett: Mm-hmm (affirmative).

Ron Wieczorek: But we're already starting to see what's triggering their buying decisions, and when they're surveyed, there generation for some home buyers are liking or picking more diverse. And culturally diverse neighborhoods are closer to their work and where they party at night.

So diversity and night life has now become an important part of that decision making. 58 percent of a thousand that were surveyed that were on the verge of buying a home. So they've aged enough and are far enough in their career that not they're making decisions to buy the home, that 58 percent preferred a community that had a diverse component to it.

Thom Dallman: Oh, that's cool.

Ron Wieczorek: Which is a huge change from... I mean, baby boomers, we won't even talk about, that percentage is in very single digits.

Thom Dallman: Yeah.

Dave Burnett: Will they figure, they'll live there and...

Ron Wieczorek: Yeah. Right.

Dave Burnett: Divide up everything, yeah.

Ron Wieczorek: And that's trickled down to my generation.

Dave Burnett: Mm-hmm (affirmative).

Ron Wieczorek: That its' more homogenous than... My generation is more diverse than baby boomers of course.

Dave Burnett: Mm-hmm (affirmative).

Ron Wieczorek: But it's definitely overwhelmingly homogenous than the newer generations. And millennials a little more diverse but not extremely. And it looks like the Gen Z's are really putting an importance on diversity, living where they play, living where they work. And what that's going to do I think is that their demographic is more multicultural than ever before. Because generation by generation it becomes more diverse, and more multicultural. And we're seeing that. And that I think is a huge positive because these preferences will have a substantial impact ton home buying patterns and it could turn to create a new dynamic where diverse communities were maybe not thriving, will now start to turn the corner to thrive.

Dave Burnett: Well let me ask you this, because I know... and Thom, you could probably answer this better for me. And that is I know there's a lot of subdivisions/communities where...

Thom Dallman: Mm-hmm (affirmative).

Dave Burnett: I'm thinking of Eagle Rd where they put in those new subdivisions. And on the entrance of the subdivision, there's areas where they've got theaters, they've got stores, they've got restaurants.

Thom Dallman: Oh yeah.

Dave Burnett: And stuff, on the entry way into the subdivision.

Thom Dallman: Right in the subdivisions these days.

Dave Burnett: Is that kind of part of that thing where I'm not going to have to go down to the mall, I'm not going to have to go downtown, it's going to be right there in my community?

Ron Wieczorek: I mean I think that's part of our culture now period. You know, everything's at our fingertips. Whether it's your phone, we have access to... I'm a big sports fan, and I always talked with my friends in the past, you know, I remember this 1987 team and they had... I'd start naming guys on their team, and there was nobody to fact check me.

And I probably had guys that...

Thom Dallman: So you made up all kinds of players.

Ron Wieczorek: Oh yeah. But I thought I was right. You know what I mean? I was like, I remember this guy on this team, whoever it is. Whether is was Ricky Henderson on this '87 team, and I was like well he didn't get there til '89. I was like, wait what?

So you kind of remember these things. I think it's part of our culture now just to have everything at our fingertips. And have everything so close.

Thom Dallman: Yeah.

Ron Wieczorek: As opposed to before where there was probably more patience, and we didn't know what we didn't know.

Thom Dallman: Right.

Ron Wieczorek: So in some ways that technology is hurting us and helping us at the same time.

Dave Burnett: It's changing us.

Ron Wieczorek: It's changing us.

Dave Burnett: Yes. So I mean some would consider it a positive. But I just know... And the reason I bring this up, I was talking to a person this week that they were going to go to the dentist.

The comment was, well it's just right there on the entrance to my subdivision. I thought, that is very convenient.

Thom Dallman: That's nice.

Ron Wieczorek: Yeah.

Dave Burnett: Within five minutes of home is their dentist.

Thom Dallman: Right. Well I think that plays a lot into the communities like Avimor and Hidden Springs where they're making those communities where they do have all that stuff as well. That's the whole concept between those two subdivisions particularly is to have that.

Ron Wieczorek: Yeah.

Thom Dallman: Where you can just go to the marketplace to get what you need. You don't have to go all the way into the store and stuff.

Ron Wieczorek: And I can speak to Hidden Springs because I live in Hidden Springs.

Thom Dallman: There you go.

Ron Wieczorek: And I can see now we're going to have more. And I don't know what that time frame looks like, but to get gas I have to go out to Dry Creek and go on 55 and it's 6-7 minutes away.

Dave Burnett: Oh my gosh.

Thom Dallman: So far.

Ron Wieczorek: You know, so there's times... And I'm going to pick on my wife a little bit. I don't think I've ever gotten her car and it didn't say 'E'. I'm like, did you have an F option? Because mine tends to stay more past how full. Yours is always E.

Thom Dallman: Yeah.

Dave Burnett: Then again, now you're talking, does this make a difference when we're talking downtown? For entertainment wise, that would like to live within walking distance of downtown and the clubs.

Thom Dallman: Yeah.

Ron Wieczorek: Yeah.

Dave Burnett: And the night life downtown.

Thom Dallman: Do you think we'll start seeing more condos?

Ron Wieczorek: I do.

Thom Dallman: Yeah.

Ron Wieczorek: I think that ultimately is going hopefully in. Hopefully they sparse it out a little bit.

Thom Dallman: Exactly.

Ron Wieczorek: But that's a natural progression for that need, because to fit a lot of place in small areas.

Thom Dallman: Yeah, we've already seen a big increase lately, so we'll see if we get some more.

Ron Wieczorek: Yeah, I can see that.

Thom Dallman: Okay.

Ron Wieczorek: And not just the high-end, because there's a lot down... You're not going to get downtown condos.

Thom Dallman: Mm-hmm (affirmative).

Ron Wieczorek: For the first time home buyer.

Dave Burnett: For the older.

Ron Wieczorek: And I think, back to Gen Z, with that younger generation I think we're going to... even though millennials are our biggest group of buyers right now.

Thom Dallman: Mm-hmm (affirmative).

Ron Wieczorek: I think in a few years you're going to see Gen Z getting into the mix faster. Millennials waited, and a lot of reasons went into that. And one of the big reasons is the great recession of 2008. They were...

Thom Dallman: They were teenagers.

Ron Wieczorek: They were teenagers. They saw the ripple effect of that. They saw their parents lose a house. Maybe they were struggling to get a job themselves if they were getting into that age group.

Dave Burnett: Or they saw Mom or Dad lose their job.

Ron Wieczorek: Yeah, absolutely. So that bite is still there, and that wound is still fresh. Fresh enough, no it's healing, so now that's why we see them later to the game. And they waited longer to start families, and there's a lot of reasons for that. Whether it's technology or whether it's just more of a 'me' attitude, or what it was.

But now the Gen Z's are far enough separated from that where all they've seen is values go up at a certain rate, and most recently a higher rate.

Thom Dallman: Very much higher.

Ron Wieczorek: Very much higher. Where their attitude is more it's a great investment.

Thom Dallman: Mm-hmm (affirmative).

Ron Wieczorek: Like that's all it is is an investment. Real estate is where it's at.

Thom Dallman: It just keeps going up.

Ron Wieczorek: It keeps going up. How can you lose?

Dave Burnett: In the last few minutes that we have in this segment, let me ask you how is this going to affect us here in Treasure Valley as far as subdivisions? What are we going to see happen as far as like Hidden Springs, or planned communities? Are we going to see more of it here in the next five years taking place, do you think?

Ron Wieczorek: I think we already are.

Thom Dallman: I think we already are too.

Ron Wieczorek: Yeah. And like you mentioned, Dave, I think we're going to see a lot of those amenities in very common place.

I lived in Jacksonville for ten years, I think. In Jacksonville, Florida.

Dave Burnett: Uh-huh.

Ron Wieczorek: And the biggest buy land area, the biggest city in the United States. And I lived in a place called Southside. Everyone's always like, "oh, Jacksonville's so huge, have yo been to this part?" I'll be like no. Have you been to this part? No. Have you been downtown, I was like well yes, for football games. But everything I needed to live, breathe and just exist in Jacksonville was...I could draw a little circle and it had everything I needed. And that's all, that's where we played, that's where we did everything. That's where we had our entertainment, and I think maybe that's a bigger example.

Dave Burnett: I think that's happening. My daughter lives in Canyon County and she was in last week into the house. She said, man this is the first time I've been into Eagle in months.

Ron Wieczorek: Right.

Thom Dallman: Yeah. I was chatting with a gal that lives in Meridian, and she was like, I never go into Boise. I will never go downtown, I do all my shopping, I do all my fun stuff all in Meridian.

Dave Burnett: And when I moved here that was never the case.

Thom Dallman: Yeah.

Dave Burnett: Everybody wanted to go downtown for something. You know.

Ron Wieczorek: And I think you're still going to see those as the city grows, and they do still have those pockets. There was two areas, whether it's downtown, whether it's for a sporting event. Whatever's downtown that is a main attraction, you're still going to travel down there. Maybe take a ride share to get there.

Thom Dallman: Yeah. Go see a concert.

Ron Wieczorek: See a concert this weekend, or last weekend.

Thom Dallman: Last weekend.

Ron Wieczorek: So you'll still have those place you go, and in Jacksonville there was the beach. So that was one of the two reasons I'd leave that Southside was to go to the beach, or to go downtown for a football game. Other than that, everything was right there. So I think you're right, you're going to see that a lot more, and I think we are now.

Dave Burnett: Changing times.

Ron, if somebody wants to get a hold of you at Five Star Bank, Equal Opportunity Lender, how do they get a hold of you?

Ron Wieczorek: My best number is my cell phone, it's always on me, is 208-869-9154.

Dave Burnett: Of course, Flagstar Bank, one of the sponsors of the Idaho Real Estate Buzz, along with the folks at Core Group Realty. Call them today, 208-933-7777 or go to CoreGroupRealty.com. Find out why they say you get more with Core.

Segment 4

Dave Burnett: This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, Associate Broker at Core Group Realty. CoreGroupRealty.com. That's Core Group Realty at eXp. The phone number to call 208-933-7777.

Thom Dallman: Just dial those sevens.

Dave Burnett: In these final segments of the show, I was always like it because we talk about things that have to do with homeownership. Not necessarily new ownership, but dealing with ownership. One of the things we want to talk about is cutting corners.

Thom Dallman: Don't cut corners.

Dave Burnett: When's the right time to cut a corner and when is not the right time?

Thom Dallman: That's a good question on when is the right time. When it comes to homeownership, I like to tell people never cut corners. It's kind of that philosophy of you get what you pay for. Cutting corners, as far as finding a tradesman, finding the cheapest tradesman you can. You're going out, you want to replace your flooring, you go out and find a flooring person that will install it for half the price then everybody else, you tend to get what you pay for.

Usually, though, those people that are willing to do it at half price are not the quality craftsman that they should be. There's a reason why they're usually discounted, so-

Dave Burnett: Or they're going to send out an apprentice or somebody-

Thom Dallman: Yeah, exactly.

Dave Burnett: ... not experienced at doing it.

Thom Dallman: Exactly, so you need to really make sure that you're evaluating the tradesmen coming in, make sure that you're checking reviews, making sure that you're inspecting everything that they do to make sure that it stays on track and to make sure that they're doing a good enough job for what you're doing. That's one of the most important things that I see a lot of people trying to cut corners on by doing it themselves as well. Then they kind of mess things up and then they end up having to spend more money getting somebody in to fix it.

Dave Burnett: Fix it. Yeah.

Thom Dallman: Just start out from the get-go hiring the right person, interviewing multiple people, and making sure that you have that right person. Don't cut the corners on when it comes to the person that's actually doing the work on your house.

Dave Burnett: Even if you have to wait a bit and save up some money to do it.

Thom Dallman: Correct.

Dave Burnett: Better than that, "Hey, I found somebody for 150 bucks to build that fence."

Thom Dallman: Exactly right.

Dave Burnett: You may get what you're paying for.

Thom Dallman: Exactly. Exactly. The same can be said about builders. Not all builders are created equally. They all do different products, so it's really easy for people to get kind of obsessed with a certain floor plan, a certain design for one builder. Maybe that builder is not particularly a quality builder. Maybe they do not put quality stuff into their floors or into their houses, and so you really want to make sure that you're evaluating that aspect of your home as well for resale value. Because eventually, you're going to want to sell the house.

The house is going to be something that is going to go back on the market eventually, so you really want to make sure that you're checking all the quality or the quality of all the appliances that they're putting in. Make sure that they're putting in high-quality water heaters, furnaces, things like that because there are ... Unfortunately, some builders after that will cut corners and will not go with the full quality stuff that you should have in your home, which then ends up just costing you money anyways in repairs. Bad quality furnaces go out. Air conditioners go out. Stuff like that.

Dave Burnett: For a home buyer too, it's something for a buyer to beware. I don't know how many times I've heard somebody say, "You know what? Give me the cheap carpet that looks good because we're selling the house and it doesn't matter anyway."

Thom Dallman: Right.

Dave Burnett: When you put it in, it looks real good, but give it six months, it's beaten down, it looks awful.

Thom Dallman: It's beaten down.

Dave Burnett: Buying a house, you kind of want to be aware of what's in there, making sure it's quality product.

Thom Dallman: Exactly, exactly. I don't know if this is really considered cutting a corner, but one thing that I've seen happen throughout my career is people get kind of obsessed with a specific house and they're like, "Oh, my gosh, I got to have this house." We sit there and they tell me like, "I really want to be in Meridian. I really want to be close to downtown Meridian area." They pick a house over in West Boise.

Dave Burnett: Because they fell in love with the house.

Thom Dallman: Because, yeah, they fell in love with ... They saw it somewhere on the internet and just were like, oh, obsessed with the house, and so fast forward six months later, all of a sudden they're hating the commute. They're hating where they live. It's not a good community that they expected. They're contacting me saying, "You know what? This wasn't the dream house after all." So make sure that if you're looking, if you want to be in a specific location, don't give up that location for a specific house. Unless the location is just not that important to you.

Dave Burnett: Well, for you as a real estate agent, how do you work with that when you know ... Because it's such an emotional thing.

Thom Dallman: Yeah.

Dave Burnett: Buying and selling homes, there's a lot of emotion involved in it both ways. How do you work with that? I come to you Thom and I say, "I really want to buy in Nampa. Nampa is where I want to be. I work here and I'd want to be there." Then suddenly, my friend Roy shows me a house in Hidden Springs and I think, "Oh man, that's it. Oh, I can't pass that up." How do you as a real estate agent work with that?

Thom Dallman: I will have a very candid conversation with my clients. I always make sure and be straight forward and honest with them. And, "Let's weigh out the pros and cons of this. You wanted to be in Nampa, so let's talk about the location. Let's drive it the distance between the two so you get an idea of what your commute's going to be-"

Dave Burnett: During rush hour.

Thom Dallman: "... during rush," and stuff like that. I'll usually advise my clients to really think it through.

Dave Burnett: So, you'll take the time to work, I mean ...

Thom Dallman: Oh, yeah.

Dave Burnett: Seriously. I mean, that's a time commitment for you.

Thom Dallman: Oh, yeah.

Dave Burnett: To say, "You know what? Let's go drive that," sort of thing.

Thom Dallman: Yeah, exactly. See what you think or you know ... Because it's not worth your peace of mind if it's gonna frustrate you to have that big of a commute or that change of lifestyle if you like to go run around downtown or whatnot. Super important to make sure that you're not giving up your location and moving further than where you want to be.

Dave Burnett: Here's the bells that go off in my head on this. Make sure you have a real estate agent, whether it's with Core Group or not, that is listening to what you say.

Thom Dallman: Yeah.

Dave Burnett: Because if you have just an agent that just wants to sell you a house, they'll go, "Sure. I'll sell you that one there," and it's not what the person really wants.

Thom Dallman: Exactly.

Dave Burnett: Make sure you have an agent that you talk to them, interviewed them, and make sure you have an agent that listens.

Thom Dallman: Indeed. Yeah because there's a lot of agents that will ... I hear complaints all the time about agents out there that just, "They just keep sending me houses outside of my price range, outside of my location that I'm looking in." It just wastes everybody's time and stuff, so yes, definitely make sure you're interviewing your agent, as well as interviewing your lender. That's one of the other things that people kind of get sucked into, the mortgage advertising, the internet mortgage companies that are advertising all over the TV, "Great rates." "Quick loans," and this and that.

Not all lenders and loans are created equally, so you have to be super careful that you're making sure that you compare those internet mortgage companies with-

Dave Burnett: And that you have a human to talk to.

Thom Dallman: ... with vocal ... And that you have a human to talk to, yes. Yeah. I had a-

Dave Burnett: That will make a difference at some point.

Thom Dallman: Yeah, a couple months ago, I had some clients that were trying to use one of those online mortgage companies and they were so frustrated after about a month because every time they would call to try to get update it would be a different person that would have to go through and look at all their paperwork.

Dave Burnett: Yeah. "Let me look at your file."

Thom Dallman: Exactly. They never had one specific person that they could talk to. Once again, I encouraged them to talk to one of our lenders or just talk to a local lender and get a second opinion, see how it works out for you. They ended up switching because they really enjoyed talking to the person and having a person, one person that they go to, not multiple people and stuff like that. Don't get suckered into that advertising on TV. Make sure you're doing your due diligence and exploring your options there as well.

Dave Burnett: Easy to try to cut the corner thinking, "We can save a couple of dollars."

Thom Dallman: Right.

Dave Burnett: And then the long run, the frustration factor, A, you're not going to save any money, and B, the frustration factor can be huge.

Thom Dallman: Exactly.

Dave Burnett: All right. Very good. Anything else as far as ... We've talked about cutting corners when it comes to contractors, when it comes to product, when it comes to material going into your house.

Thom Dallman: Yeah.

Dave Burnett: Don't be tempted to cut corners.

Thom Dallman: Correct.

Dave Burnett: Because it will catch up with you sooner or later.

Thom Dallman: Yeah, exactly.

Dave Burnett: And make sure you're not falling in love with the object, but you're getting what you want.

Thom Dallman: Exactly, exactly. Probably the last thing I'd probably mention is when it comes to new construction, I've heard people say, "Let's just put in the cheapest carpet that the builder can find and we'll just replace it later down the road because we'll find something better at Home Depot. Nicer grade, but cheaper." Builders have, usually, contracts with flooring places, with these light and fixture places to get ... Since they do it in bulk, they get the ...

Dave Burnett: Discounts.

Thom Dallman: They get discounts on their carpeting, on their lighting, and stuff like that, so they actually have a better ability to get you higher grade stuff for a cheaper price than what you can get at Home Depot or and whatnot. Don't always think that cutting corners by having the builder put it in the cheapest of everything that you're going to eventually replace. Why go through that? Just let them put it in and get your home exactly like you want it when you first ... as it's being built so that you don't have to deal with all that.

Dave Burnett: You'll be happier.

Thom Dallman: You'll be happier.

Dave Burnett: And odds are-

Thom Dallman: Less stress.

Dave Burnett: You'll be three years down the road go, "We were going to replace that carpet, weren't we?"

Thom Dallman: Right. If you're anything like me.

Dave Burnett: Yeah. I'm a horrible procrastinator, and as long as there's carpeting on the floor, okay, fine.

Thom Dallman: Yup. Exactly.

Dave Burnett: I'll just live with it for now.

Thom Dallman: Exactly.

Dave Burnett: Thom if, somebody wants to get hold of you at Core Group Realty at eXp, how did they do it?

Thom Dallman: Yeah, give us a call. The 208-933-7777 phone number. You can email us info@coregrouprealty.com or just go to our website, CoreGroupRealty.com and check us out. There's a contact us spot on there that you can reach out to us and ask any kind of questions. Love it when people ask questions because then it gives me things to talk about on the radio.

Dave Burnett: Exactly. CoreGroupRealty.com, the website. Of course, Core Group is one of the sponsors of the Idaho Real Estate Buzz, along with the folks at Flagstar Bank. Do this, find out why they say you get more with Core.

Ron Wieczorek

Flagstar Bank

208 869-9154


Core Group at eXp Realty

208 639-7700



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