Why Is Buying Such a Smart Move in Idaho Falls?

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Today we are going to go over the numbers to determine if it’s better to rent or to buy here in Idaho Falls. If you are currently renting, or know someone who is, you should pay special attention to this. For the sake of consistency in the numbers, let’s say that we are talking about a home that costs $210,000.

With a 5% down payment, you will still need a loan of $200,000. The standard interest rate on this type of mortgage is around 4%. In addition to these costs, your property taxes would cost you $1,950 per year, with an extra $600 per year to cover insurance. This makes your principal payment $1,167 per month. 

In 12 months, you would be able to take your principle balance down to $196,377 which gives you an equity buy down of $3,396 and an extra $7,350 of equity assuming a 3.5% appreciation rate. Those numbers may not mean hard cash in your pocket, but they are real.

In addition to those savings, you get tax breaks as well. You can deduct both your property taxes ($1,950) and mortgage insurance ($7,920) on your taxes, giving you $9,870 back on your taxes.

I called a few property managers to get an idea of what this home would cost per month if you were renting it, and they came to a consensus that it would be around $1,450 per month. If you were renting this home, you would be paying an extra $283 per month which adds up to $3,396 per year. 

As you can see, when you buy a home as opposed to renting it, you can save up to a total of $16,582 on a $210,000 home in just your first year of homeownership! 

If you don’t own a home, or know somebody else who doesn’t, these are the numbers and numbers never lie. If you have any questions for us, give us a call or send us an email. We can’t wait to hear from you!

Click here to learn more about the advantages of being a homeowner.

What Is Earnest Money?

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The topic of earnest money is one that’s shrouded in confusion. Today we are going to talk about the facts of earnest money, and what you need to know about it.

What is earnest money? It’s a buyer showing the seller they are earnest and sincere about buying the property. What it really functions as is a security blanket. When you place an offer on a home, you are asking the buyer to take it off the market. They want to know that a buyer is invested before they do this, and that’s where earnest money comes in.

I recommend depositing about 1% of the sale price in earnest money. That seems to be the magic number for us. It’s enough to hold the owner’s attention and may save you in the event of a default.

When you pay it, the earnest money is deposited into a trust account for the benefit of both parties. It will not leave that trust account without the agreement of both parties, which leads us to one of the most common myths I hear about earnest money.

I’ve had many people come to me and tell me they believe their earnest money will be forfeited if they end up defaulting. That’s simply not true. If a buyer defaults, that just starts a second negotiation, a negotiation to get out of the contract. Sometimes, the earnest money is enough for the buyers to avoid legal action, which the seller would have the right to pursue if you defaulted.

Assuming no difficulties, the earnest money is applied to the down payment and closing costs at closing. It’s not a donation, it actually counts as part of the cash for your down payment.

If you have any questions for us about earnest money, feel free to give us a call or send us an email.

Achieving Is Believing

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Today I'm here to talk about my father, and how he was determined to live, and live very fully. My father's name is Jean, and he'll be 80 years old this year.

Why am I talking about my father? Well, he's taught me a lot about determination and hope.

Between the age of 47 and 51 he had four heart attacks. This left him with one functional chamber in his heart, and a doctor told him that he had about 3-5 years left if he took things easy.

My father made the decision that he didn't want to die sitting down in a chair. He kept on living like he always did, and the rest is history. Now, 29 years later, he's still going strong.

He's still working out on a treadmill, a stair-stepper, he does sit ups, push ups, as well as taking a long walk every day.

Without saying anything, he sets a sterling example of what you can do with heart, determination and drive.

You can do so much more than you believe, you just have to trust yourself to do it!

Looking for Home has Never Been Easier!

Download the KW app now to simplify your home search!

Selling your Idaho Falls home? Get a free home value report  
Buying an Idaho Falls home? Search all homes for sale

The new Keller Williams mobile app will allow you to look at available homes as you drive down the street looking at them. This will vastly simplify your home search, as it allows you to look at homes in real time, and you can see the price and other important details.

This app will showcase homes that are nearest to you because it tracks your location with GPS, but you can also search specific neighborhoods for specific property types. If you find a home you like, you can then swipe through the pictures and see the home.
If you'd like to use this app, please click on this link and follow the directions: http://app.kw.com/KW2MO3641/

This app is also compatible with your iPad, and if you're travelling, this app will work in whatever neighborhood you find yourself in. There really isn't any reason why you shouldn't be using this app. You can use it on the go, or you can utilize it from the comfort of your own home.

As always, if you need any assistance buying or selling in Idaho Falls, please don't hesitate to contact me!

How Can You Start Every Day the Right Way?

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After 26 years in real estate, I decided to hire a coach to help me take my services to the next level. It has been incredibly helpful!

One of the things my coach introduced me to was a book called The Miracle Morning by Hal Elrod. It focuses on how you can spend the first 30-60 minutes of your day adopting a productive mindset. The book explains how starting the morning right can frame your day and help you accomplish your goals!

We utilize a program here that Keller Williams teaches called BOLD. One of the first laws is that your cells eavesdrop on your thoughts. When someone is having a positive day, can't you tell? Usually, when a person's thoughts are in the right place, you can tell just by their body language that they're having a good day. The same goes for when people have negative thoughts - their body language shows it!

Another BOLD law is what you focus on expands. If you focus on something bad, it's only going to make you feel worse and make the problem bigger. Likewise, when you focus on something positive, you can bet that it will influence your entire mindset and lead to a more productive, upbeat day!

I just wanted to share these thoughts today because some of these points really made a positive impact on my life and business, and I hope they can do the same for you!

As always, give us a call or shoot us an email if you need real estate assistance of any kind. We would love to hear from you!