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So much to cover today! Ron Wieczorek from Flagstar Bank is in the studio talking more about the housing market crash about 10 years ago. They guys also chat about the emotional side of buying and selling a home.

Finally, Thom and Dave go through the process of selling a home. They have so much great info to share today!

 

Segment 1

 

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. Every week we get a chance to talk to Ron at Flagstar Bank. Flag Star Bank, an equal opportunity lender.

                                                We've been talking about ten years ago.

Thom Dallman:                  Ten years ago, what happened ten years ago? The Great Recession.

Ron Wieczorek:                Just a little over ten years ago, that you know, everyone knows 2008 is synonymous with the market crash, and the house of cards, the economic demise. If you had a 401k, you woke up, almost instantaneously and it was half.

Dave Burnett:                    Started licking your wounds.

Ron Wieczorek:                Yeah, right. Right. It's only loss when you go to take it out.

Thom Dallman:                  Yeah.

Ron Wieczorek:                Your plans become very long term at that point.

Dave Burnett:                    But we have had a really good recovery since then.

Ron Wieczorek:                Better than good.

Dave Burnett:                    Yeah.

Ron Wieczorek:                Better than good. So over the last 120 plus months, in fact, it's America's... the longest in U.S. history, the growth expansion is a 120 plus months of the rebound since the housing market. And the housing market, I say the housing market giveth and the housing market taketh, because they tooketh in 2008, and they've kind of fueled the economic rebound that we've seen over the past 120 months. It's played a very instrumental role.

If I can just go back to some of those numbers, just to kind of put it in perspective, in the first quarter of 2010, so this is... Now, we're a year and a half removed. In 2009, is when you start seeing it coming back up. I'm kind of doing something with my hands that nobody can see.

We start seeing that recovery, but again, licking wounds you don't notice that you're in that growth spurt, because you got hurt so bad.

So the share of homes in the first quarter of July, first quarter of 2010 with negative equity. What percentage of homes do you think had negative equity in the U.S. in the first quarter of 2010. So it's a year and a half removed, some of the values start coming back up, still hurting, right?

Thom Dallman:                  2010.

Dave Burnett:                    That's asking me to remember a long time ago now.

Thom Dallman:                  I'm going to try to say.

Ron Wieczorek:                It's a number between 1 and 100, and it's a percent. I'll help you guys out.

Thom Dallman:                  I'm going to say 40%.

Ron Wieczorek:                That's a big number.

Thom Dallman:                  Yeah that was about-

Ron Wieczorek:                I don't want to say it, because I see the number in front of me what it was.

Thom Dallman:                  Yeah.

Dave Burnett:                    I can tell you this, the value of my home had gone down significantly.

Ron Wieczorek:                Let's keep in mind that there are some folks that maybe own their homes free and clear at that time.

So not everyone was leveraged. So when I say negative equity, it doesn't mean that you lost equity, 100% of homes lost equity. But how many had negative equity where you owed more?

Dave Burnett:                    Upside down. Like most car deals are.

Ron Wieczorek:                Right. The second you drive off the lot.

Dave Burnett:                    Yeah. So, I'm going to say 25%.

Ron Wieczorek:                Wow! 25.9%, Dave!

Thom Dallman:                  Wow, on fire!

Dave Burnett:                    I would've said 25.9 but I would've looked like a smart aleck.

Ron Wieczorek:                Yeah, right. You had to sandbag just a little.

Dave Burnett:                    Yeah.

Ron Wieczorek:                Now we fast forward to 2019, and what is that percentage today? This is nationwide, in Boise the number's a lot smaller than this, but there's still some which brings me back to Earth sometimes, because I'm just insulated here in Boise. And I'm like "Well, there's no houses that are underwater."

Dave Burnett:                    I bet it's under 5% though.

Thom Dallman:                  Oh, actually we do have houses that are underwater, so-

Ron Wieczorek:                Okay, all right.

Thom Dallman:                  I just recently did our... the homes that were foreclosed, distressed properties, listed as, and I think that we were only at 1 point something percent here.

Ron Wieczorek:                Okay.

Thom Dallman:                  Within Boise, so-

Ron Wieczorek:                Nationwide.

Thom Dallman:                  But we still have 1 point something. So nationwide I feel like just read an article that said we're somewhere around 6% nationwide.

Ron Wieczorek:                Split the difference, about 5 and a half.

                                                Yeah.

Dave Burnett:                    Yeah.

Thom Dallman:                  They rounded up in the article I read.

Ron Wieczorek:                Probably, probably.

                                                So it's hard to believe where we sit in Boise like I was saying that, you know we only have less than 2% in... And that number makes me think it's not stemming from 2008.

Thom Dallman:                  Yeah.

Ron Wieczorek:                What my mind goes to is, maybe there was low down payment, because there's a lot of loans out there that help first time homebuyers buy homes. And if they get 2-3 months down the road, if something happens with their job, or life happens, that's when you can become underwater. So that's probably-

Dave Burnett:                    Does that also include homes that something bad has happened to them? We had that whole street in the foothills that slid off the... Somebody had to take a bath on those houses.

Ron Wieczorek:                Right. It depends. If they're homeowners and they walked away from it, and insurance didn't cover it, then yeah, that includes-

Dave Burnett:                    That would include there.

Ron Wieczorek:                Yeah.

Dave Burnett:                    Okay.

Ron Wieczorek:                So, point of the story is, we've made a lot of headway. That's one of the first numbers that I looked at. As of last quarter, Boise still had a year over year gain of 14% in home appreciation. And we're only behind one city in the U.S., so we've seen massive growth, right? That city, oddly enough, is Atlantic City in New Jersey. They've kind of... They've come out of nowhere. They weren't on any really the lists that I've seen. And now they're starting to see a boom.

Dave Burnett:                    Wow.

Ron Wieczorek:                I have to do more research, because I don't know what's going on in Atlantic City right now. Maybe the Boardwalk's coming back.

Dave Burnett:                    Could be. They had hurricane that hit through there several years ago, but it's rebounding.

Ron Wieczorek:                Yeah, maybe.

Dave Burnett:                    So, that's interesting.

Ron Wieczorek:                You remember the Boardwalk, right?

Dave Burnett:                    Yes, yes I do.

Ron Wieczorek:                When you're hanging with Nucky Thompson out there...

Dave Burnett:                    Exactly.

Ron Wieczorek:                So total home equity hit a record of 15.8 trillion dollars at the end of last quarter. If you add up on the equity, and you know, obviously there's a plus or minus to this, it can't be an exact number, but 15.8 trillion dollars in equity. That's by far where most Americans have their money, and it's not even close.

And at the first quarter of 2009, how much equity... Now keep in mind, there was a lot of free and clear houses. So there was still... Even though we saw a lot of houses that were underwater, how much equity do you think was in houses the end of 2009?

Dave Burnett:                    I don't even have an educated guess. Thom?

Thom Dallman:                  That's a hard one. I'm trying to think back to 2009.

Ron Wieczorek:                16 trillion now, 15.8 trillion, so just you can use that as your barometer, you know it's a fraction of that number, right?

Thom Dallman:                  Yeah.

Dave Burnett:                    I hate math.

Ron Wieczorek:                Just give me a quick number, I don't got a lot of time. You guys don't let me talk that long.

Thom Dallman:                  1 billion.

Ron Wieczorek:                1 billion? That's a little, what?

Dave Burnett:                    About 12?

Ron Wieczorek:                12 trillion?

Dave Burnett:                    Uh-huh.

Ron Wieczorek:                About 6 trillion.

Thom Dallman:                  6 trillion, okay.

Ron Wieczorek:                Which is, historically, is a small number.

Thom Dallman:                  I was going for a very small fraction.

Ron Wieczorek:                Yeah, you were going, like that was... I think Bill Gates had a billion dollars equity in his house.

The average equity per homeowner over the last 10 years has went... And I won't quiz you guys on this. I see you guys sweating. So the average in equity in 2009 was about 75,000. Because there was still... For everyone that has a mortgage, or was underwater, there was someone maybe at the tail end that had owned their house for 30 years because that was pretty commonplace and still is. You have to have people with equity, which was about 75,000. And now, if you look at today, there's over $171,000 average equity. There's a lot of people with zero equity because they just bought the house. They just maybe got a VA loan with 0% down, or got a housing loan with half a percent down. There's a lot of people with a ton of equity that's driving up that number.

Dave Burnett:                    So what is the lesson we learn out of this?

Ron Wieczorek:                Well, there's a lot of lesson that we should learn. I think one of the lessons, maybe not a lesson, but I think real estate's a really good investment.

Dave Burnett:                    Mm-hmm.

Ron Wieczorek:                You're going to see your bumps in the road. You're going to see some downturns. Some people would say, "Well, you know, we're probably going to see that again."

Dave Burnett:                    But you see that in anything.

Thom Dallman:                  Yeah. I tell people that it's a long term investment. It's not just an investment. It's a long term investment. You can't expect to just buy a house and sell it in a year and have a bunch of equity in it. You have to hold onto it for awhile to really let that equity build.

Ron Wieczorek:                Yeah. No, I agree. I think that's one thing that we... When it gets really, really bad like it did in 2008, where people were just making... People were losing jobs. So that's kind of where... You know, we talk about the economic growth since 2009, and how that's kind of... The housing market has helped and aided that. Because the last nine years, the expansion has created more than 20 million jobs.

Dave Burnett:                    Yeah.

Ron Wieczorek:                Raised family incomes, it's rebuilt the consumer confidence. So the backbone of all these numbers, is the jobs, right? You have to have-

Dave Burnett:                    Well, you think about it, too, I mean, subcontractors, their employees, employees working for them, the people selling washers, dryers, furniture... It entangles. Its web goes all the way through our society.

Ron Wieczorek:                Well, and as Thom knows, to try to get... If you're in any kind of trade right now in the valley, and that's all I can speak of, but I'm sure it spreads a lot further out than that, you're busy.

Thom Dallman:                  Yep.

Ron Wieczorek:                And if you've been here for any number... If you've started your business 5-6 years ago, you're hiring. You can't handle the amount of business that's getting thrown your way, especially if you have a reputation that's somewhat good.

Dave Burnett:                    Yeah.

Ron Wieczorek:                And even if you've just got the valley a year ago, and maybe did a couple odd jobs, and started thinking, "Oh, I don't know if this is going to work." You're too busy.

Thom Dallman:                  Right.

Ron Wieczorek:                So it's... That's what's going on right now is what you said. I guess a good way of putting it is, as the tide comes in, all the ships rise, right? I hear a lot of people saying, "Well, the rich get richer." When the economy's going well-

Dave Burnett:                    Trickle down does work.

Ron Wieczorek:                The rich aren't going to get poorer. But everyone's going to see that uptick. And I think a lot of, I know that's what a lot of is going on right now. And it's just trickling down like you said, and-

Dave Burnett:                    I guess what I hear you saying though, and Thom as well, it is a long term investment. You buy a house, and you live there, you take care of it, and you'll find that no matter what happens with the economy one way or the other, you will wind up with a positive investment over time.

Ron Wieczorek:                Absolutely.

Thom Dallman:                  Exactly.

Ron Wieczorek:                And I think, to add to that is, and kind of what I'm preaching, is how just having that housing bounce back a little bit has just spurred the economy to a point that we're at now. I think there was a lot of different factors. I don't think you can point to say that, "The housing went up." Or "The jobs were great." Or "This policy did that." I think all of it together is... We're really seeing the fruits right now.

Dave Burnett:                    And in closing, just-

Ron Wieczorek:                Closing? We're-

Dave Burnett:                    We're there. And in closing with this, interest rates right now, they're low. They dropped the prime again last week.

Ron Wieczorek:                Yeah. The stretch that we're going through with interest rates just, I mean... Even since 2009, now we had a stretch in, end of 2016 all through 2017 and '18, where they went up to a level that, us, who had been spoiled for the past 20 years are uncomfortable with. But now they're back to a rate that is just spurring even more activity.

Dave Burnett:                    Yeah. So there's never been a better time to refinance or to get a home loan. And as Thom always preaches, prequalify, prequalify, prequalify.

Thom Dallman:                  Yep.

Ron Wieczorek:                He has a bumper sticker that says that.

Dave Burnett:                    I think he does.

Thom Dallman:                  I should actually design one.

Dave Burnett:                    Ron, if somebody wants to get-

Ron Wieczorek:                That's my idea, Thom.

Dave Burnett:                    If somebody wants to get a hold of you to talk to about whether they wanted to refinance or take out a loan, how do they do it?

Ron Wieczorek:                My cell phone, it's always on me. It was levitating a second ago. It's 208-

Thom Dallman:                  I was sitting here noticing it, too, going off. Like wow, he's a busy man this morning.

Ron Wieczorek:                208-869-9154.

Dave Burnett:                    It's the Idaho Real Estate Buzz being brought to you by the folks at Flag Star Bank, and of course, Core Group Realty at EXP. Call them today to find out more, 208-933-7777. 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, also an associate broker at Core Group Realty @eXp. Do yourself a favor, give them a call today, 208-933-7777. And Thom, I say do yourself a favor. If you're thinking about buying or selling, you owe it to yourself to interview, to talk to the folks-

Thom Dallman:                  Interview, yep.

Dave Burnett:                    ... talk to Thom and see what-

Thom Dallman:                  You say that all the time now. Not everybody's the perfect fit for you. So you should be making sure that you have that right, the person that's going to help represent you the best that they can. But also that you feel comfortable with, your trusted advisor. Someone that you know that you can trust to help you with this most important financial decision that you're going to make.

Dave Burnett:                    Whether you're buying or selling, it's a huge decision and it's an emotional one. And you don't want to run off emotion. You want to run off logic here. And that's where a trained professional can help you.

Thom Dallman:                  Correct. Correct. On either side of it, should be able to help you kind of navigate those emotions a little bit and keep you calm. It can be a stressful situation going through it. I'm going through it this week with the, I went through it I should say this week with we're at the tail end of closing. And the buyers on this house are wanting all kinds of stuff done right before the end, and trying to renegotiate. And my sellers are getting super emotional because they're trying to move with kids, and work, and all that stuff. So yeah we're going through it. We go through it all the time.

Dave Burnett:                    And really when people say, "Why do I need to pay a real estate agent to help me?" That's part of the thing is helping keep your head through it all.

Thom Dallman:                  Exactly.

Dave Burnett:                    Because it is an emotional decision when you're selling the house that you've lived in for years where you have your kids in. It's tough.

Thom Dallman:                  Yep, it sure is.

Dave Burnett:                    It's tough, so.

Thom Dallman:                  It sure is.

Dave Burnett:                    We're going to do this again. We're going to bring Ron back.

Thom Dallman:                  We're going to bring Ron back, yeah.

Dave Burnett:                    Yes.

Thom Dallman:                  Yes.

Dave Burnett:                    He was just getting wound up and talking about-

Thom Dallman:                  Right? And he was so disappointed that at something that was ending.

Ron Wieczorek:                Well, I just didn't believe. I really gave nobody any choice.

Thom Dallman:                  Yeah. He's got his papers all spread out here. He's like, "Well, am I done? Am I leaving?".

Ron Wieczorek:                Yeah, I don't want to talk about it. Coffee's kicking in.

Thom Dallman:                  Right.

Dave Burnett:                    If you missed a segment before, we were talking about the past 10 years and how really home sales and everything in it has helped spur the economic growth that we are experiencing today.

Ron Wieczorek:                Right. And I'm going to real quick, I'm going to take a detour to just piggyback off what you were talking about having a trained professional because I remember... I've been doing lending for 19 years.

And when we bought our last house, I think it was four years ago, I was doing it. And I was emotional and, no, I'm serious. I was... I got the inspection report back, and I was like, "Well, how dare you. That's not... " And they were simple things where it was I think we gave a credit of 1000 bucks.

But I was all bent out of shape. And then we started-

Dave Burnett:                    There's nothing wrong with that.

Ron Wieczorek:                And we were negotiating on the other house, and I'm bent out of shape again. And I'm like, "Geez, I do this for a living and I can't take a step back from my own emotions." So to Thom's point, yeah, I mean it doesn't matter who you are. You let that kind of take over. And then it becomes a game, and sometimes you, you lose sight of what you're really after.

And I see that with clients all the time is they'll forget that the house, they're 800 bucks away from their dream home. They have their kids playing in the backyard, and next to their best school. And they're just like, "No, on the principal." I'm like, "Take a look to your left. Johnny and Jill, is that worth 800 bucks?" And like, "Well, no. Sorry. Okay.".

Dave Burnett:                    And if you wait long enough, somebody's going to take your dream.

Ron Wieczorek:                Oh yeah. Especially in this market, right?

Thom Dallman:                  Exactly.

Ron Wieczorek:                Which leads me to the economic boom that we've seen over the 10 years, last 10 years. We came from a real bad place to over 120 plus months of economic growth, which is unprecedented. So we're in territory that we're not used to. And we talked a bit, a little bit in the break, and we talked in the last segment about how jobs are plenty. People that have had a business for a year are hiring, or going out on their own and then hiring a few people on their staff. And then they're leaving for greener pastures because there's was money out there to pay for those services.

So it's a real thing that's happening. And what we see is, we talked about the mortgage rates. We have over the past 60 years, we've never really seen a stretch like we've had of below 5%, which when I first started in 2001, 8% is what... And I'm not even, that's just 2001. You could probably talk about double-digits and mid double-digits to high double-digits-

Dave Burnett:                    The Jimmy Carter era.

Ron Wieczorek:                Yeah.

Dave Burnett:                    Where 11% for a home loan was standard.

Ron Wieczorek:                Yeah. That was a steal.

Dave Burnett:                    Yeah.

Ron Wieczorek:                Yeah. So, I mean we're on an unprecedented run when it comes to that. And that's why you see a lot of those house values that are higher because if you have a $50,000 house at 12% interest rate versus $150,000 house at five, the 151 ends up being cheaper in the long run. So it's all relative in those cases.

So those economic forces have really driven a recovery in home sales, construction prices, home equity wealth. So everyone's kind of doing better. And I made that analogy when the tide rises, all ships rise. And that's what's kind of going on right now, or is going on.

One thing that's going on in Boise is, and this is everywhere, so we've seen a great increase in prices. Primarily, since I'd say 2012 is when we really start seeing some of those highly distressed homes getting occupied, and then gaining value. And people that were buying first-time homes, we're flipping. They didn't buy it as a flip.

When you think of a flip house you think of, I'm an investor, I got deep pockets. I'm going to make an offer on a house and I'm going to get rid of it in six, eight, 10 months. But what's happening is they're buying at such a great time that two years later their family was still... They were probably behind the curve in buying.

And so they bought a house that maybe was, they were almost growing out of already. But that's what they could afford at the time because the economy wasn't as good. So they were already kind of on that bubble. And then 12 months later, the price went up. They had a bunch of equity in their house. And the family didn't stop growing, or the kids didn't stop growing. They don't do that. And then they flipped houses.

So we've seen high turnover in flip houses, or what the market considers flip houses. But it wasn't really intended that way just because of that growth spurt. And some of that's slowed down a little bit. The first quarter of 2018, the number of properties bought and sold in a two-year period reached its highest point. And that's not just Boise. That's nationwide.

Dave Burnett:                    Nationwide.

Ron Wieczorek:                So that was at 11.4%. So that's...

Dave Burnett:                    Interesting.

Ron Wieczorek:                That's more than one in 10. One in nine really that bought and sold in a two-year period. So that's when you think of, and Tom, you've probably been saying this for years in real estate, is when someone buys a house, you kind of plan for six to seven years in that house.

Thom Dallman:                  Average is now at 10.

Ron Wieczorek:                Right.

Thom Dallman:                  People are staying 10 years in their house.

Ron Wieczorek:                Right. So now when you have these numbers out here where 11% is two, for the average would be 10 that means there's a lot of people hanging onto their houses. You're either moving fast, or you're not moving at all it sounds like.

Thom Dallman:                  Exactly.

Ron Wieczorek:                And that's kind of what we see with inventory. With inventory pent up for those people that aren't moving fast, that are sticking onto their homes for... I blame baby boomers a lot because they're healthier than they've been in previous generations. They're staying put.

There's 30 plus years in a house. And that's what makes your 10 years, right? So, and over the past 10 years, home prices have increased. Here's another startling number that gets me is we've seen this vast growth in home prices. But that hasn't stopped investors from, I don't want to use the word greedy, being capitalists.

Dave Burnett:                    Okay.

Ron Wieczorek:                So you see a 10-year period where homes have increased 50%. Rents aren't going to stay still. Your $600 rent in 2012 is not $600 now. It's up over 40% since that time. So we're seeing record rents around the Valley. And that's what's even speaking to some people that are on the bubble with rates as low as they are, even with the prices a little bit higher it's still making more sense for them to buy-

Thom Dallman:                  To buy than to rent.

Ron Wieczorek:                Yeah, just because-

Thom Dallman:                  We said that, yeah.

Ron Wieczorek:                And the problem that you get stuck in if you rent too long, and the rents are going up. So even if your income is increasing, maybe it's not increasing at the pace that rent's increasing.

Dave Burnett:                    Yeah. The rent's eating it up.

Ron Wieczorek:                It's eating it up, right. So you're finding yourself on a stricter budget, making more money because your landlord is pulling the strings. Why? Because they can.

Dave Burnett:                    Yeah.

Thom Dallman:                  Exactly. Yep. We had someone reach out to us a couple weeks ago that said, "We're just, we're at that point where our rent has gone up from 700, they just raised it to 1000. They raised it that $300. And we can't. We're just... ".

Ron Wieczorek:                Which is almost 50%-

Thom Dallman:                  "We might as well buy a house.".

Ron Wieczorek:                ... raise.

Thom Dallman:                  Yeah, exactly. We might as well just go buy a house at this point. So, yeah. We took them out looking at houses because rents are just ridiculously, gone up so ridiculously fast right now.

Ron Wieczorek:                And that's what we see with the work. We talked about the working class and the middle class is kind of going away. And you hear a lot of that. But a lot of that reason is for what we're talking about. If things are costing more, and more, and more, and even with incomes going up, they can't go up fast enough to dictate what other people are setting their price at because if it's good, it's good.

Dave Burnett:                    Is it not... Let me ask. Let me throw this out. And if you don't like what I say my name is Thom Dallman. Is it not-

Ron Wieczorek:                Opinions expressed by...

Dave Burnett:                    Is it not though a little self-inflicted? Sometimes you get complacent if you're renting and think, "Yeah, we're renting. We're fine." And if you're not being proactive and aggressively thinking financially, "Hey, here's a better financial move for me to buy a home." It's a little self-inflicted.

Ron Wieczorek:                I've seen it both ways. I've seen it where sometimes it's forced. Maybe life's happened where a job was lost, or medical stuff has happened, or just things you can't plan. And then I've also seen it where it's been, I've had a few clients that have been looking for houses for over four years. And they were looking at a house, two in particular that just come to mind, that were under a contract for $170,000 on a house that's worth 350 now.

And they're like, "We're going to wait for it to go back down." And they've been saying that every month for-

Dave Burnett:                    It's not going to happen.

Ron Wieczorek:                It's not going to happen.

Dave Burnett:                    Yeah.

Thom Dallman:                  Yeah.

Ron Wieczorek:                So now they've priced out of it. Now they're renting, right? They can't do anything now.

Dave Burnett:                    But if you're renting, and you're complacent at renting, and keep paying that. And if you aren't proactive saying, "Let's go talk to somebody about buying home." You'll keep renting. And you'll be the one losing in the long run.

Ron Wieczorek:                And not only do you lose economically, I think you... And you may think this is goofy talk. But I don't. I believe in this is psychologically, I think when you leave your home as a homeowner every morning to go to work, there's just a little more juice. There's a little more pep in the step. And you're like, "I'm building equity. I own my own home.".

There's a reason I do this besides if you have kids, besides looking at those little faces in the morning. And that's a quick reminder of why you do things. But other than that, it really just, it kind of vindicates you, and kind of reinforces what you've been thinking.

Dave Burnett:                    It gives you a purpose and a reason to go to work when really you may not feel like-

Thom Dallman:                  Right.

Ron Wieczorek:                Well, there's one person in this room that loves to go to work.

Thom Dallman:                  That's two.

Ron Wieczorek:                Okay, two. We got two.

Thom Dallman:                  I love my job. I love my work.

Ron Wieczorek:                Dave, are we going to make it three?

Dave Burnett:                    Yeah, me too.

Ron Wieczorek:                Two-and-a-half. I'll take it.

Dave Burnett:                    Yep. But it is something you need to kind of analyze for yourself. If you're renting right now, analyze whether that's the right thing for you to be doing or whether you're being complacent because complacency can wind up costing you in the long run.

Thom Dallman:                  For sure.

Dave Burnett:                    And Thom, I know you are real good and Ron's real good about counseling people. And really sitting down-

Thom Dallman:                  When is the right time?

Dave Burnett:                    Yeah. Is it the right time for you or not?

Thom Dallman:                  Exactly.

Dave Burnett:                    And they can do that. Ron, if somebody wants to get hold of you to sit down and talk about what financial options are open, what's your number?

Ron Wieczorek:                Yeah. So real quick before I give my number is it's never a no. It's a not now sometimes because we do sit down and we peel back the layers. And we're like, "You're close. This may not be the perfect time. But you're close." And then sometimes you're like, "I don't know what you're waiting for. You're ready.".

Thom Dallman:                  You should have been doing this a year ago.

Ron Wieczorek:                You've been ready. And sometimes it's that psychological, "Oh, I don't think I'm... My parents drilled this in my head. I don't think I'm quite ready." When man, you could have bought a home a year ago like Thom said.

Dave Burnett:                    So maybe this is the push.

Ron Wieczorek:                This is the push.

Thom Dallman:                  So how do they get hold of you?

Ron Wieczorek:                My cell phone. It's always on me. It's 208-869-9154.

Dave Burnett:                    Of course, Flagstar Bank. Equal opportunity lender and one of the sponsors of the Idaho Real Estate Buzz, along with the folks at Core Group Realty @eXp. Go to the website, CoreGroupRealty.com. Find out why they say you get more with Core.

 

 

 

Segment 3

 

Dave Burnett:                    They see as the Idaho real estate buzz. He is Thom Dallman, the co-owner, associate broker at Core Group Realty @eXp. CoreGroupRealty.com is a website you can always go to 24/7 and of course you can call (208) 933-7777.

Thom Dallman:                  seven seven seven or four sevens sorry. Seven seven, seven, seven.

Dave Burnett:                    Just start dialing sevens and it'll start ringing.

Thom Dallman:                  Just remember the name three three, seven and then seven seven, seven.

Dave Burnett:                    Yup. You got it. One of the things that happens when somebody gets ready, we've been talking about it off and on, I've come in, we've decided we're going to sell our house. We sit down, we consult with the one of the agents at Core Group Realty and we said, "Let's do it." We sign the deal.

Thom Dallman:                  Get it listed.

Dave Burnett:                    Now what?

Thom Dallman:                  Now comes the showings. We've talked about this in the past. The showings, be prepared for the showings, be ready for people to come through the house and whatnot.

Dave Burnett:                    But there's a lot that goes into it.

Thom Dallman:                  Yeah. Then you get the offers hopefully within, the first day. You start getting offers rolling in. You got to kind of go through that process of reviewing the offers, looking at what the net dollar is. Remembering, when you're getting those offers, the highest offer's not always the best offer. You want to make sure that you're reviewing each offer individually. What type of loan they're doing. How much down payment do they have? How much of earnest money are they putting down? You want to make sure that you're accepting the contract that's going to be the most successful to close and stuff.

But then once you go under contract, that's where a lot of people are like, okay, now what? On both sides, buyers and sellers, but they get kind of lost in the next 30 to 45 days while we're going through escrow. What do we do?

The next step would be the buyer's doing an inspection on the house. Every buyer, I would say nine out of every 10 buyers does an inspection. Maybe even nine out of every or 19 out of every 20 get an inspection done because they want.

Dave Burnett:                    They better.

Thom Dallman:                  They want to make sure that, yeah, the house is good for them.

Dave Burnett:                    This is a point that the seller kind of holds their breath. Going oh boy.

Thom Dallman:                  Oh boy. Yes.

Dave Burnett:                    Let's see what might be wrong with my house.

Thom Dallman:                  This is a point, this is a source of contention sometimes for sellers, if they're not educated and don't realize that there's going to typically be something that needs to be fixed. It's very rare to have an inspection, not have something come up, unless it's a brand new house. But even brand new houses have had issues before. Typically, you want to have a little bit of savings aside or be flexible enough to do a price reduction or credit towards closings in case something comes up in the inspection. And the inspection, as we talk about in the past, is for safety and soundness issues. Things that are going to cause the house to decay quicker if it's not fixed or cause injury to somebody if it's not fixed, exposed wiring, peeling paint, things like that. Trip hazards.

Dave Burnett:                    I would think water and electricity, those are two big ones.

Thom Dallman:                  Yes. Yup, yup. We get that a lot.

Dave Burnett:                    Water where it's not supposed to be.

Thom Dallman:                  Exposed wiring or plug, even the little caps that go over your plugs. People are like, well it doesn't matter if that doesn't have the cap on it. Little kid could stick a finger in there and get seriously hurt. Yeah, there's, typically we see peeling paint, especially around the edges of the outside of the house where lawn mowers have butt up against it or where maybe sprinklers are not adjusted right. It's got a little bit of water damage and stuff like that. You may be asked to slap a coat of paint on there or replace some siding and whatnot.

The inspection is going to happen. And then the seller has 10 days to get whatever on that inspection is asked for, done. That's an important timeframe that a lot of sellers kind of forget about. If they don't have a good realtor explaining that to them, you have 10 days to get that done. If you don't get it within that 10 days and some contracts they may alter that and make it even less. Majority of the contracts, will say 10 days for the sellers to get that fixed because actually the 10 days, the buyers have three days to come through and do a walkthrough to make sure that it's done to, it's done. Now a note to the buyers, it's not necessarily a quality, done to your quality standards per se. If it's done, it's done. Unless you very specifically put in writing how you want it done, you can't go back and say, "Well we wanted this painted but all you did was slap a coat of paint on there.".

Dave Burnett:                    You didn't do it the way we wanted.

Thom Dallman:                  We wanted you to sand it down, we wanted you to do put primer on it. Unless it was very clearly stated in the contract, if it just says, "The peeling paint to be painted." They can just slap a coat of paint on.

Dave Burnett:                    This kind of points out to me again where having a real estate agent that you really have a good line of communication with is so important.

Thom Dallman:                  Yeah. And having that agent that's going to think about that. Those little details of hey, if we asked for this, let's ask for a professional to get it done. I've had transactions before where they've just said, "Hey, we want some painting done. We want the plumbing fixed under the sink." Blah, blah, blah. Never specified they wanted professional to do it.

Dave Burnett:                    Here I go under the sink.

Thom Dallman:                  The husband happened to be a handyman, so he took care of all the stuff. We sent off the note that it was all done, that they can go do their walkthrough and they're like, okay, we want to see the receipts from the professionals. And we're like, well no, there's no receipts. He did it himself. He's a handy light. He's a guy like that and handy and they're like, they got upset. And we're like, well, you're contract never specified that you wanted a professional to do this. It just said to get it done and he got it done. Yeah, having that real estate agent that's going to be able to get that stuff clearly explained and then, explain that to the buyers when they do their walkthrough what to expect.

After the walkthrough, then comes the appraisal usually about that time is when the lenders send out the appraisal. Different from the inspection. As we've talked about in the past too. Appraisals for the lender and the lending company, the bank. It's to verify that the house is safe and sound for you as well as that the house is of value. That's the main part is they're going to assess the house and make sure that you're not overpaying for the house on the loan.

Dave Burnett:                    The appraisal's really not for you. It's for the lenders.

Thom Dallman:                  It's for the lender. Yep, yep. Yes.

Dave Burnett:                    They're making the investment.

Thom Dallman:                  The inspector's for the buyer, the lenders for, the appraisal's for the lender. And a little bit for the buyer just to make sure they're not overpaying and whatnot. And then after the appraisal, it's pretty much, clear shot into closing.

There's one more walkthrough. The buyers will do in one last walkthrough of the house right before closing. They have three days prior to closing to do a walkthrough to make sure that the sellers have left the house in the same condition and that it's not, there's no significant damage that's been done to the house while the sellers are moving out.

Dave Burnett:                    Which can happen.

Thom Dallman:                  Yeah. It's not, I like to clarify it to buyers, It's not to inspect the cleanliness of the house. We have a lot of buyers who get caught up in the, oh my gosh, they moved out, but they didn't vacuum the house. They didn't.

Dave Burnett:                    There's still dust bunnies.

Thom Dallman:                  Clean the toilets. You're buying a resale house, there's a certain expectation of cleanliness, but there's also the concept of the sellers are moving, they're in the middle of processes that they're, they don't have the, always have the time to clean the house a 100%.

There is a possibility that when you move into the, when you get the house, it may have, it may be dirty. There may be some stuff on the floor and there may, you may have to go through and clean it a little bit before you move in.

Dave Burnett:                    Is that something could put in a contract if I'm buying that once they've moved out that they hire a cleaning company.

Thom Dallman:                  A professional cleaner? Yep, you want to make sure that you negotiate that up front because it's not something that you can do there at the end.

Dave Burnett:                    You have to have it done before.

Thom Dallman:                  That walkthrough is just to make sure that there's no significant damage done to the house. It's not to verify a cleanliness of the house. We've had numerous buyers get upset because the house...

Dave Burnett:                    Not at their standard.

Thom Dallman:                  Is not at their standards of cleanliness per se, even though the sellers have gone through and they vacuumed and they did wipe down the countertops and whatnot. Maybe they didn't scrub the floors, they didn't scrub the toilets as good as the buyer wanted. That can't, you can't use that to hold up the sale of the house. That's just something that you may have to anticipate. You might have a good realtor that will pay for a cleaner. Like myself, I tend to do that.

Dave Burnett:                    Wouldn't have done that.

Thom Dallman:                  But you just, it's really to look for significant damage on the house.

Dave Burnett:                    Thom, I know the folks there at Core Group Realty @ eXp, you're looking for listings.

Thom Dallman:                  We're looking for listings. Anybody who wants to sell, we'll do free consultation just to give you a value, let you know what your equity is, let you know what you can kind of expect and stuff like that.

Dave Burnett:                    It's always good to have a product to sell.

Thom Dallman:                  Yup. Exactly. Exactly.

Dave Burnett:                    Without any shame, without any embarrassment saying, "You know what? It's a tight marketplace." If you're looking to list your home, give us a call at Core Group and a have Tom and the folks come out, take a look at it and find out, what is it worth? What is this home worth? A free consultation. They say nothing's for free, but you know what? That is for free.

Thom Dallman:                  Exactly.

Dave Burnett:                    That's a pretty good deal. CoreGroupRealty.com is a website, Core Group Realty @ eXp, the name of the company, and of course (208) 933-7777. Sponsors of the Idaho Real Estate Buzz, along with the folks at Flagstar Bank. Do this. Find out why they say, "You really do get more with Core."

 

 

 

Ron Wieczorek

Flagstar Bank

208 869-9154

OpesAdvisors.com

Core Group at eXp Realty

208 639-7700

CoreGroupRealty.com


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